Mortgage Rate Rises

[matt100]

They'll ask why because they probably have a statutory duty to report you saying you need to pay the turkish mafia or something but conceptually all you're talking about is an equity release, hardly controversial.

Fundamentally the decision would be made from a set of criteria, a credit check and a valuation. The actual use of the money will have very little influence.

I would guess the only thing that would have any influence on that would be you borrowing a lot and trying to argue the house will be worth more after you're done but that's more of a bridging loan type setup.

It's my experience of the wild west of the noughties but it wasn't unusual to talk about consolidation of debt from money that you'd spent on the house already in this sort of situation.

 

[Maccy]

Yeh we borrowed an extra £30k when we remortgaged last year, just told the broker it was for home improvements which it was, they check affordability and if all ok then they transfer you the additional funds to the nominated account on completion.

 

[EH75]

Borrowed an extra £20k for a car purchase earlier this year. Just the normal affordability checks really. And they just deposit the money in your account when the remortgage goes through - nothing stopping you spending it on whatever you want.

We are heavily overpaying anyway, I only borrowed the money for the car on the mortgage because the interest rate was a lot less that it would've been on a personal loan. The extra debt for the car will be clear in less time than a personal loan would've been.

 

[BennyC]

In all seriousness, what legal obligations do you have when you tell them said reason? So say you say home improvements and then spend it on a boat...I mean...what difference does it make? They're not going to check afterwards for how much was spent at Screwfix vs Boats R us?

About 3 years ago I took out a small mortgage, dealing directly with the lender they wanted to spend about 2-3 hours on a phone call to discuss the application etc. Which would have involved me peddling a creative story about a significant amount of 'home improvements'.

In the end I used Habito to access the same product through the same lender and I don't think they asked any questions at all. If they did they were much more concise and accepting.

 

[BUDFORCE]

In all seriousness, what legal obligations do you have when you tell them said reason? So say you say home improvements and then spend it on a boat...I mean...what difference does it make? They're not going to check afterwards for how much was spent at Screwfix vs Boats R us?

Would like to know the answer to this also tbh.

Just say it's for home improvements it's basically never checked.

If you say it's for people trafficking that a a different story.

It'll never be checked after, at worst they might, and I reckon about a 1% chance these days ask for you to provide some quotes for potential works, or at least what you plan on doing.

It's not fraud either, you had all intentions of doing home improvements, then something else came up, it happens.

....... probably to about 99% of people saying they are raising for home improvements.

Really the lender is covering themselves more than anything, if the regulator asks what people are raising all.thus money for the little tickbox on the system is checked, that's pretty much all it is.

 

[john_smith]

In all seriousness, what legal obligations do you have when you tell them said reason? So say you say home improvements and then spend it on a boat...I mean...what difference does it make? They're not going to check afterwards for how much was spent at Screwfix vs Boats R us?

I did this on my 1st house (circa 2004). The remortgage was £50k and I borrowed £65k. I was unemployed and bought a Skyline 33GTR, imported from Japan. It was a bumpy conversation with my then girlfriend (now wife) at the time .

 

[dl8860]

I did this on my 1st house (circa 2004). The remortgage was £50k and I borrowed £65k. I was unemployed and bought a Skyline 33GTR, imported from Japan. It was a bumpy conversation with my then girlfriend (now wife) at the time .

Have you still got it? Might have been a better investment in the house if you kept it in good nick

https://www.topgear.com/car-news/retro/r33-nissan-skyline-just-sold-235k

 

[john_smith]

No. I wish I did though.

 

[Bounce]

Looking at upsizing at some point as got baby now and need extra room.

Would this be classed as a remortgage ? And if so when is best time to do this? My current fixed deal ends next December .

Does anyone know if you have say 10k in savings you could put this towards the new home?

Never done this before hence the questions

 

[BUDFORCE]

Looking at upsizing at some point as got baby now and need extra room.

Would this be classed as a remortgage ? And if so when is best time to do this? My current fixed deal ends next December .

Does anyone know if you have say 10k in savings you could put this towards the new home?

Never done this before hence the questions

Itl be a purchase but you can usually port your rate.

And yes.

 

[ivrytwr3]

Santander have just reduced my rate!!!! 6% to 5.75%

 

[CaptainRAVE]

Our broker contacted us in the last hour with a 2 year fixed that rivals the 5 year fixed we went for or a much lower 5 year vs what we were being offered from the bank. With that rate we’ll probably switch to the 2.

4.07% on 5 and 4.41% on a 2.

Same provider to avoid more paperwork.

 

[Andrew Moore]

I keep coming in here out of curiosity more so than anything else. When I was given the opportunity to fix for 10 years at a shade over 2% I was told I was stupid. I’m so glad I did, the extra 2.5% I’d be paying now may not look much but it equates to around an extra £300 a month!! It soon adds up too.

 

[kona786]

I keep coming in here out of curiosity more so than anything else. When I was given the opportunity to fix for 10 years at a shade over 2% I was told I was stupid. I’m so glad I did, the extra 2.5% I’d be paying now may not look much but it equates to around an extra £300 a month!! It soon adds up too.

That's only really one decent brass nail a month tho!

But yeah it soon adds up and takes away from your quality of life.

 

[slinxy]

Santander have just reduced my rate!!!! 6% to 5.75%

was this automatic to stop you from moving to another lender? or did you apply for a re-mortgage?

 

[413x]

I keep coming in here out of curiosity more so than anything else. When I was given the opportunity to fix for 10 years at a shade over 2% I was told I was stupid. I’m so glad I did, the extra 2.5% I’d be paying now may not look much but it equates to around an extra £300 a month!! It soon adds up too.

Yeah when you are new on the mortgage journey those single digit percent rises are massive differences

 

[ivrytwr3]

was this automatic to stop you from moving to another lender? or did you apply for a re-mortgage?

Automatic - logged on that day to check the balance and noticed the rate had been reduced.

 

[ivrytwr3]

I keep coming in here out of curiosity more so than anything else. When I was given the opportunity to fix for 10 years at a shade over 2% I was told I was stupid. I’m so glad I did, the extra 2.5% I’d be paying now may not look much but it equates to around an extra £300 a month!! It soon adds up too.

Sitting smug and i don't blame you

 

[tamzzy]

When I was given the opportunity to fix for 10 years at a shade over 2%

What i did too

 

[dlockers]

Our broker contacted us in the last hour with a 2 year fixed that rivals the 5 year fixed we went for or a much lower 5 year vs what we were being offered from the bank. With that rate we’ll probably switch to the 2.

4.07% on 5 and 4.41% on a 2.

Same provider to avoid more paperwork.

What LTV?