Mortgage Rate Rises

[Tom_ed1987]

Looks like mortgage rates are starting to lower:

NatWest offers sub-4% mortgage deal directly to consumers with brokers concerned

High street lender NatWest is offering a sub-4% mortgage deal directly to consumers, which has raised concerns among brokers.

www.mortgagesolutions.co.uk

60% LTV 5 year fix.

Interesting that the lower rate is for direct customers only.
Is this a sort of formal recognition of the poor value that a mortgage broker adds to a simple remortgage process?

 

[adam cool dude]

Interesting that the lower rate is for direct customers only.
Is this a sort of formal recognition of the poor value that a mortgage broker adds to a simple remortgage process?

We have stayed with Barclays ever since we started our mortgage in 2010. They would always near enough match the deals I could get elsewhere and with 0 fees too. We started with 25% deposit however so maybe a lot less competition at that end.

 

[Armageus]

That's been the case for a week now. HSBC offer 3.95% now which is better.

Yep that's changed in the last couple of days, as I took a screenshot on 01/08/24 and 5 year fix was 4.08%.

2 year fix has gone from 4.54% > 4.41% (0.13% decrease)
3 year fix has gone from 4.44% > 4.32% (0.12% decrease)
5 year fix has gone from 4.08% > 3.95% (0.13% decrease)
10 year fix has remained at 4.88%

 

[fez]

Interesting that the lower rate is for direct customers only.
Is this a sort of formal recognition of the poor value that a mortgage broker adds to a simple remortgage process?

I'm clearly out of the loop here but I thought the only real reason to use a broker was if you had tricky or non-standard circumstances and would struggle to find a product that would take you. We've had 4 mortgages and none of them have gone through a broker. It makes no sense to insert someone in between yourself and the lender unless its necessary. Someone is losing out monetarily if a 3rd party wants to get paid.

 

[dlockers]

I'm clearly out of the loop here but I thought the only real reason to use a broker was if you had tricky or non-standard circumstances and would struggle to find a product that would take you. We've had 4 mortgages and none of them have gone through a broker. It makes no sense to insert someone in between yourself and the lender unless its necessary. Someone is losing out monetarily if a 3rd party wants to get paid.

I used a broker when I bought my first house - I made £1k cashback on the mortgage (a reserved product for brokers), and £800 in Quidco cashback. I paid nothing for the broker. When it came to the new house, I used a broker again - this time £600 cashback on Quidco, no broker fee.

They do make life easier - rather than you sorting through docs, evidence etc. you just zip it up and send it over. They then organise it the way they know the bank wants to see it.

I guess the bank must have a team that is foregone when a broker is involved, hence they pass on some cash to the broker as a reward.

 

[tamzzy]

I'm clearly out of the loop here but I thought the only real reason to use a broker was if you had tricky or non-standard circumstances and would struggle to find a product that would take you. We've had 4 mortgages and none of them have gone through a broker. It makes no sense to insert someone in between yourself and the lender unless its necessary. Someone is losing out monetarily if a 3rd party wants to get paid.

basically what @dlockers said
i used a broker for my mortgage but basically went in saying this is the mortgage i want, please sort the rest out
zero hassles on my end

(2.35% 10 year fixed in 2022)

 

[dlockers]

(2.35% 10 year fixed in 2022)

I hate you

 

[TNA]

Yep that's changed in the last couple of days, as I took a screenshot on 01/08/24 and 5 year fix was 4.08%.

2 year fix has gone from 4.54% > 4.41% (0.13% decrease)
3 year fix has gone from 4.44% > 4.32% (0.12% decrease)
5 year fix has gone from 4.08% > 3.95% (0.13% decrease)
10 year fix has remained at 4.88%

I noticed it a day or two before BOE cut the rate. It was on MSE

 

[tamzzy]

I hate you

sowwii

 

[413x]

Good to see sub 4pc.
I would still like to see sub 3pc by time I need to renew. Which is very much a possibility. And would only be 1pc more than what I pay now.

 

[Richie]

On 3.41% till 2027 so its moving in the right direction... I would LOVE sub 3% at renewal time but, TBH, I would be ok if it remained the same given I would hopefully have 3-4 pay rises by then.

 

[413x]

On 3.41% till 2027 so its moving in the right direction... I would LOVE sub 3% at renewal time but, TBH, I would be ok if it remained the same given I would hopefully have 3-4 pay rises by then.

Ideally I want to keep my 1000ppm payments at that level all the way to paying off the mortgage which should be achievable without a term increase if get to sub 3pc.

 

[Richie]

Ideally I want to keep my 1000ppm payments at that level all the way to paying off the mortgage which should be achievable without a term increase if get to sub 3pc.

If the rate goes below my current one, I will probably just keep the payments the same and overpay. I plan to start overpaying by almost 30%/month from the start of next year regardless, if a couple of things all work out by the end of this year (bonus etc)

 

[CaptainRAVE]

Annoying to not have that deal available from NatWest when renewing. I’ll wait to see if the percentage drops on the renewal. 4.53 is the best currently without a fee on a 5 year. Doesn’t make a huge difference to payments, but it’s still annoying. 5.09 on a 2 year without a fee.

 

[player]

Ours is up in December, would like an offset again but rates tend to be higher... swings and roundabouts..

 

[El Jimben]

Barclays have announced further cuts today too, now down to 3.84% for a 5 year fix.

 

[dlockers]

Hoping the rate drop means what I have locked in goes down a bit. I am paying 4.74% over 5 years for half, and 2.44 on the other half. IIRC I have locked in 4.84% for the 2nd half.

The website is currently offering me 4.64% at 80% LTV but it seems to have no bearing on the actual Mortgage Manager app...

I can also see my house price has dropped from 860 to 830 according to their calculator, so I am still playing a balancing game with the LTV ratio (currently at like 80.24%)!

I guess I'll have to endure the call center and see if I can get the 4.64% rate, and I'll probably have to top up the mortgage by £2k to get through the LTV test based on their revaluation of the house.

Just spoke to Nationwide - they reckon their system is showing £816k for the house - which means no chance of me getting back to 80% LTV quickly. Their mortgage manager shows £830k which is a slightly more manageable £2.6k shortfall to find.

They also reckoned the rate has dropped from 4.84 to 4.24.... I am less convinced. I have asked for the mortgage advisor to call; they seem to be infinitely more educated than the regular CSRs.

 

[TNA]

Barclays have announced further cuts today too, now down to 3.84% for a 5 year fix.

Awesome. No doubt others will follow.

 

[Junglist]

We've got a call booked in with our broker tomorrow. Not due to renew until October 2025 but I think they got their dates mixed up as when we tried to buy, delays happened so we had to re-do our application.

We had a good ride though. 5 years fixed at 1.7%. Going to ask a few questions about a house we've seen recently but otherwise we'll try and hold on this for as long as possible. If we can renew at ~3% next year I'll be happy with that

 

[CooK1E]

I'm clearly out of the loop here but I thought the only real reason to use a broker was if you had tricky or non-standard circumstances and would struggle to find a product that would take you. We've had 4 mortgages and none of them have gone through a broker. It makes no sense to insert someone in between yourself and the lender unless its necessary. Someone is losing out monetarily if a 3rd party wants to get paid.

Never used one before, but have done this time for extra borrowing. As others have said being able to just throw some docs at them and they sort everything out is the advantage. As I'm buying now too, he's been dealing with the conveyancers and estate agents, which saves my sanity and was worth his referral fee alone.