Mortgage Rate Rises

[bainbridge]

It's remortgage time for us, currently on 2.2% and our 5 year fix finishes end of May.

I'm looking for another 5 year fix.

Current provider (Nottingham) offering 4.89% nil fee or 4.74% £999 fee.

My employers have teamed up with a mortgage broker and the came up with 4.6%, with a fee (can't remember how much).

My current account bank offered 4.7% with a fee.

A comparison site bought up my current provider as the cheapest offer.

The independent broker we used last time around took some info from us to update his fact find, and has got 4.24% with nil fee and legal fees included. It's with Leeds.

So we're going to lock that in if we can and revisit the figures in May.

 

[Jae-So]

Starting to think the 4% for 5 years I locked in, in mid-2023 was not such a bad idea. I was worried that by this point rates would be under 3% but doesn't seem to be the case at all.

 

[mattyfez]

Starting to think the 4% for 5 years I locked in, in mid-2023 was not such a bad idea. I was worried that by this point rates would be under 3% but doesn't seem to be the case at all.

Hard to say... Certainly not a bad decision given what we know, and will provide some certainty by locking in.

BOE base rates are slowly falling though, so rubbish news for savers, but trying to guess where the base rate will settle and/or change direction is... Not easy!

 

[jaybee]

It's remortgage time for us, currently on 2.2% and our 5 year fix finishes end of May.

I'm looking for another 5 year fix.

Current provider (Nottingham) offering 4.89% nil fee or 4.74% £999 fee.

My employers have teamed up with a mortgage broker and the came up with 4.6%, with a fee (can't remember how much).

My current account bank offered 4.7% with a fee.

A comparison site bought up my current provider as the cheapest offer.

The independent broker we used last time around took some info from us to update his fact find, and has got 4.24% with nil fee and legal fees included. It's with Leeds.

So we're going to lock that in if we can and revisit the figures in May.

Lloyds were showing cheapest for me the other day at 4.16% with a £999 fee, 5 year fix 70% LTV.
I'm initially locked in with HSBC at 4.29 currently with 4/5 months to go. I think they will come down more.

 

[BogEyes]

Been tempted to go with a variable tracker than a fixed this time round.

Would be a roll of the dice.

 

[Meatball]

currently in the process of moving house, and we’re torn as to whether to get a 2 year fix or a 5 year fix. The 5 year fix works out £93 cheaper a month. I’m leaning towards 5 years as things in the world seem a bit hostile atm, and I can foresee rises if things hit the fan. Our mortgage advisor suggested a 2 year fix could work out better as rates are expected to go round.

Any thoughts are welcome!

 

[ChrisD.]

Our mortgage advisor suggested a 2 year fix could work out better as rates are expected to go round.

Of course they did, they likely get a kick back from the lender based on a flat fee for the deal plus a small cut no doubt.

 

[LiE]

I pretty much always go 5 years.

 

[mattyfez]

Of course they did, they likely get a kick back from the lender based on a flat fee for the deal plus a small cut no doubt.

I think I'd lean more toward a 5yr fix if you can comfortably afford it and it saves you 90 quid a month.
You might get stung a little bit if the bank of England keeps dropping interest rates, but realistically how low can it go?

If you want to hedge your bets, then put that 90 quid per month saving into an ISA or other savings account and make some interest on it.

I can't see it getting toward zero but we are in the realms of gaming the market then.

 

[ivrytwr3]

Paid the mortgage redemption fee and final payment - just checked the mortgage account and 0.

First mortgage in 2006, upsized in 2010 and now paid off. Overpayments have really brought the term down - https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ as soon as i saw the value of overpayments, it became a goal.

It's a great feeling, but with 2 kids finishing Uni in 1 and 2 years, i am terrified about how they will ever get on the property ladder, or even afford rent somewhere

 

[BUDFORCE]

It's a great feeling, but with 2 kids finishing Uni in 1 and 2 years, i am terrified about how they will ever get on the property ladder, or even afford rent somewhere

I know it's crazy.

I guess it depends where you are in the country, if your children are still living with you when they are back from uni working full time for a few years they can save good money, just got to give them a very stern talking to about not buying **** off Amazon etc and actually save it.

Even minimum wage which is what, 24k a year give or take, two years it's not unreasonable to say they could save 40k, that's a reasonable deposit.

Assuming they can start earning a little more if they have a degree it's doable.

Also be realistic about their first home, if they are expecting to move straight into a 4 bedroom detached house for example.

Also helps if they have a significant other.

 

[grudas]

Anyone remortgaged with nationwide ? I’m trying to understand if I can take the product they offer and also change term. I seem to have two options, one to change term and one to just keep term the same and go on a new fix - the new fix they offer is not bad and lower product fee so all in very competitive.

 

[Penfold101]

Paid the mortgage redemption fee and final payment - just checked the mortgage account and 0.

First mortgage in 2006, upsized in 2010 and now paid off. Overpayments have really brought the term down - https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ as soon as i saw the value of overpayments, it became a goal.

It's a great feeling, but with 2 kids finishing Uni in 1 and 2 years, i am terrified about how they will ever get on the property ladder, or even afford rent somewhere

No luck on 1% Club then? Guess your gratuity is going to their deposits mate!

 

[ivrytwr3]

No luck on 1% Club then? Guess your gratuity is going to their deposits mate!

No, she went out on Q 4 or 5 Her show aired a few weeks ago, so that a fun watch for us all!!!

Gratuity - we saved for them both since they were born, so they have some £££'s, but not enough for a decent deposit, so yeah, bank of mum and dad no doubt!

I'll be on terminal from Aug/Sep next year. I swore once i was done with the RAF, i was done, but boss has been talking about making my post FTRS - not sure..............

 

[Penfold101]

No, she went out on Q 4 or 5 Her show aired a few weeks ago, so that a fun watch for us all!!!

Gratuity - we saved for them both since they were born, so they have some £££'s, but not enough for a decent deposit, so yeah, bank of mum and dad no doubt!

I'll be on terminal from Aug/Sep next year. I swore once i was done with the RAF, i was done, but boss has been talking about making my post FTRS - not sure..............

catching up with the latest ones at the moment - I wouldn’t have won either to be fair!

I’m out at the end of this year and doing a sidestep to Airtanker as a reservist. Now got a 10 month old to build up a pot for!

 

[krooton]

Fixed at 4.38% for 5 years, not in a gambling mood with everything in the world currently.

 

[Richie]

Even minimum wage which is what, 24k a year give or take, two years it's not unreasonable to say they could save 40k, that's a reasonable deposit.

I think your maths need some work.

A £24k salary leaves you with £1735 take home. They would need to not spend any of it to get the £40k you are talking about over 2 years (well £41.5k)

TBH, considering what your job is, I find what you said a little concerning

 

[Penfold101]

I think your maths need some work.

A £24k salary leaves you with £1735 take home. They would need to not spend any of it to get the £40k you are talking about over 2 years (well £41.5k)

TBH, considering what your job is, I find what you said a little concerning

It’s easy, you just don’t pay the tax man!

 

[Salsa]

Our 5 year fix at 1.9% is nearly up and just fixed at 4.2% for 5 years with existing lender. I'll keep an eye on rates and if they drop between now and end of April then I can switch to the lower rate but I can't see it happening myself.

Was half hoping to see sub 4% before we renewed but sadly not. Went for 5 as it's anyone's guess what will happen in that time and I'd rather have the certainty than maybe saving a few £££ after 2.

/Salsa

 

[BUDFORCE]

I think your maths need some work.

A £24k salary leaves you with £1735 take home. They would need to not spend any of it to get the £40k you are talking about over 2 years (well £41.5k)

TBH, considering what your job is, I find what you said a little concerning

Oh yea forgot about that.