Mortgage Rate Rises

dlockers said:
Nationwide have a algo running in the background that constantly revalues houses based on assumptions. Just ignore it - it has no idea you've done work, nor any of the improvements of your local area. I found inconsistencies with the website vs. what they told me over the phone; it was just a timing thing of when the data was updated.

Zoopla is total make belief so just ignore it entirely.
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good to know, thanks!

zoopla is interesting, some people on reddit who have dealt with nationwide have said they use zoopla for desktop valuations.. which is hilarious if true.
 
Does anyone consider random future possibilities, like the US Elections? On one hand, Trump could win. He imposes tariffs on the world which raises prices on all our exports to the US (I don't know if that's much but I assumed it was probably greater since leaving the EU), or on the other hand if Kamala wins, is there a chance of China attacking Taiwan or something kicking off over in Iran..

Does any of this factor into not picking a short term mortgage. For instance 2 years ago, if I had said, I can see Russia attacking Ukraine this is gona affect me, I might have fixed for 10 years or at least 5.
 
ChroniC said:
Does any of this factor into not picking a short term mortgage. For instance 2 years ago, if I had said, I can see Russia attacking Ukraine this is gona affect me, I might have fixed for 10 years or at least 5.
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If you've got the time to do it, you should be forming a view on where you see interest rates going. There are lots of factors that go into this. I would say that foreign wars have relatively little impact on UK mortgage rates compared to UK housing policies and UK economic policy. I don't think the fact that mortgage interest rates are now going up would be surprising to you if you had been closely researching the market for say the last 20 years.
 
i hate how volatile the mortgage rates are. Part of my thinks i should just fix for 5 years and the other part think for only £20 extra a month i might as well fix for 2 years and then see where the interest rates are after the 2 years
 
Gilt yields soaring since budget means goodbye to any prospect of mortgage rates coming down. Even if BOE cut rates current market dynamics mean it is unlikely to make a difference.
 
Why did Gilt yields soar after the budget? Is it market uncertainty and confidence of investing due to higher taxation on everything? Would be interested to understand the technicalities of the why when getting bent over.
 
I have a remortgage off from HSBC for a 5 year deal at 3.89%. The email states that the offer is valid until the 14th of November, which is after the BOE meeting. If the mortgage rates change before the 14th, can HSBC withdraw the remortgage offer?
 
dlockers said:
I don't know what this means but I like it :cool:
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I dunno if you're serious, but swap rates are essentially the rate at which inter bank lending is set (ish), most mortgage lenders are lending money they've borrowed themselves, the more it costs to borrow the more they charge you.

It isn't necessary linked to the bank of England base rate either although for wider reasons they do tend to follow each other, swap rates are far more volatile though.
 
jaybee said:
Why did Gilt yields soar after the budget? Is it market uncertainty and confidence of investing due to higher taxation on everything? Would be interested to understand the technicalities of the why when getting bent over.
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The markets basically don't think that the budget balancing is quite right. Half the spending announced is funded by tax and the other half by borrowing. The market had priced in further rate cuts and relatively quickly into 2025 but now this looks less likely so it prompted a sell off of short term gilts which would have benefited from a quick rate cut (basically as their market value would increase). That sell off means that in order to keep funding gov debt they have to make gilts more attractive hence the upward move in 10 year yields. It's not really "soaring" at a 0.2% increase.

Its nothing like the panic after the Trussenomics of 2022 and overall reaction to the budget seems relatively muted. The problem is that growth still looks weak but that might expedite the need for a rate cut. Hard to aguge especially with the market volatility in the US at present.
 
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Soulja said:
If the mortgage rates change before the 14th, can HSBC withdraw the remortgage offer?
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Minstadave said:
No, not normally.
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What minstadave said.

Back in 2022 my offer of 2.35% 10 year fix was honoured for the full 6 month duration
I completed 2 weeks before the offer expired thankfully :cry:
The equivalent rate if I had to reapply would've been 4.5%-ish, so bullet definitely dodged
 
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