What LTV is that at?
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Don
60%
Ah ok. We're moving house and porting our existing 80% LTV (at a joyous 1.79%) and taking on some additional borrowing and the new LTV will be ~ 73%. We'd been quoted 4.74% at 75 LTV when we submitted the application a month or so ago on a 2 year fix.
Looks like it might be 4.49% now....
Looks like it might be 4.49% now....
Soldato
Now on my 4th application for my moving home mortgage as the rates drop a smidge each month! Just a small % drop makes a big difference over a 5y fixed deal!
Yep home move
I wonder why they have different rates?
To be honest I had no idea they did.
I would assume it's because inertia is a powerful force, if you're just remortgaging it is way easier to take the offer from your existing bank.
If you're moving there's so much other stuff to take into account/change then you're far more likely to change provider so they have to work a bit harder?
Soldato
Like all these things it’s done to maximise profits with a focus on attracting new customers over rewarding existing ones as your existing customers are much more likely to accept a crappy rate to avoid the effort of moving lender. This worked exceptionally well for them during the period of crazy low rates as people weren’t so bothered hopefully with these much higher rates more people will move forcing them to re-evaluate customer retention.
Its amazing how many people don't switch though.
In my peer group and on here for example we are always talking about best deals etc.
But jump on a wider audience (like MSE comments section on Facebook) and many people often say they've never switched bank, energy company, savings account.
Switching bank is so so easy and you can easily net 150-200 doing it. That's worth it to me. But someone on the breadline? It's a significant chunk
Bank is one I've never done.. it really doesn't seem worth it tbh especially the perceived hassle. Accessing HSBC is instinctive to me, they've never upset me, do I risk switching for what I've been known to spend on a night out?
Nope.
Mortgage or insurance however? I've never simply accepted a renewal quote, I may have stayed put and from time to time I've stayed put because the saving wasn't worth the bother. I have an assumption there I could do better.
Soldato
Totally agree, I was annoyed when the government intervened in the energy market to stop the companies ripping off people who never switched as they were essentially subsidising those of us who switched at the end of every fixed period.
Soldato
Yep
I always considered my financial brain and the opportunities it gave as a benefit. Other people could do things like some cash in hand brick laying as theirs.
Now most of the opportunities I could leverage are gone in order to stop the idjits making silly decisions.
I think many older people don't realise how things have changed. Most switching is now fast and painless.
You don't have to go far back to when switching lots of things was a bit of a pain. Eg physically sending proof of no claims discount if you switched insurer.
Having the old one takes ages to send your certificate and having your new one saying if we don't get it soon we are going to assume you lied etc.
I'd say it takes an hour including setting up the new app/account and maybe a little time changing card details.
For 175 or more it's worth it to me as I definitely don't earn that an hour!
Soldato
And yet the big call at the moment is to nationalise. That would stop all needs to switch.
My current bank would probably spend an hour on the phone trying to get me to stay
My current bank would probably spend an hour on the phone trying to get me to stay
That's the thing. They can't. Switching is automated. You don't need to speak to anyone!
I guess thats it.. humble brag but it's just not worth the bother for £175 in my opinion.
Yeah and that's fair enough. For me it definitely is!
And that's kind of the point. For some it could allow them to pay for a couple of months of utility bills.
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