Mortgage Rate Rises

ci_newman said:
As a perfect example of luck versus judgement - I locked in our mortgage last week at 3.79%, however Nationwide rates have increased to 4.04% in less than a week. For the luck of doing it a week earlier, the overall 5 year cost has gone up £1500 compared to the rates last week.
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Similar here. Got my Lloyd’s offer on Monday at 3.82% (going up from 1.09%), which has now gone up by £32 per month if I locked in at today’s rate. Madness!

I just hope that rates come down a little before the end of August, but I’m glad I have something locked in.
 
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Scam said:
We have a call with Nationwide on Friday to hopefully lock something in before our 5yr 1.24% term expires in June.. So we’ve got plenty of time but looks like we’re about a week too late :(
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I am in a similar boat but mine is some months away from naturally expiring. I need to lock something it but don't think I'll be getting good rates again for a long time.
 
Wife and I have been looking to move for a few months now but have not received any offers on our property. Just instructed our mortgage broker to start the process of getting a remortgage. Even compared to last week tthe rate is up 0.1%.

Going up from 3.34% in August 21 to around 4.0% now. Not hugely more expensive but it really just is wasted money.
 
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Liefrich said:
Locked in 3.9% for 5 years at the start of last week. The Iran situation will get worse before it gets any better, sadly (stupid orange man).
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HungryHippos said:
I am in a similar boat but mine is some months away from naturally expiring. I need to lock something it but don't think I'll be getting good rates again for a long time.
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Agreed. If Trump sticks around for another two years he’s only going to continue down his path. Am I right in thinking pretty much any actions he’s likely to take (war, unrest, tariffs etc) will only ever force rates up? In hindsight perhaps we should have seen this happen. Also, @HungryHippos you can lock something in up to 6 months before expiration of your current deal. Or so I’m about to find out for sure. For the reasoning above, get on it!
 
HungryHippos said:
I am in a similar boat but mine is some months away from naturally expiring. I need to lock something it but don't think I'll be getting good rates again for a long time.
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Same boat here. My 5 year 1.04% fix finishes at the end of October, so I've got 6 weeks before I can get an offer that'll hold out until then. Crossing everything that nothing crazy happens in that time...
 
Scam said:
Agreed. If Trump sticks around for another two years he’s only going to continue down his path. Am I right in thinking pretty much any actions he’s likely to take (war, unrest, tariffs etc) will only ever force rates up? In hindsight perhaps we should have seen this happen. Also, @HungryHippos you can lock something in up to 6 months before expiration of your current deal. Or so I’m about to find out for sure. For the reasoning above, get on it!
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With nationwide at least it sounds like it can only change deal with 4 months left so had until end of this month before I can look at changing, not sure how true that is if I speak with em
 
Scam said:
Agreed. If Trump sticks around for another two years he’s only going to continue down his path. Am I right in thinking pretty much any actions he’s likely to take (war, unrest, tariffs etc) will only ever force rates up? In hindsight perhaps we should have seen this happen. Also, @HungryHippos you can lock something in up to 6 months before expiration of your current deal. Or so I’m about to find out for sure. For the reasoning above, get on it!
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Markets hate uncertainty and they hate things they cannot predict mike random tarifs that make no sense. So essentially yes, pretty much whatever Trump does unless suffer a heart attack will always risk crashing markets, rising oil prices and raising mortgage rates
 
Freakbro said:
They're talking about potential bank rate rises now during the year instead of cuts if the oil price feeds through to general inflation.
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What I will say is whilst I get this is what happens, I don't see a very direct link between making houses more expensive relatively and stopping trump being a lunatic.

I get that reducing the money supply restricts the room for everyone to get involved in raising prices, it won't reduce oil prices.

D.P. said:
Markets hate uncertainty and they hate things they cannot predict mike random tarifs that make no sense. So essentially yes, pretty much whatever Trump does unless suffer a heart attack will always risk crashing markets, rising oil prices and raising mortgage rates
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I think the only thing that would be unpredictable and would reduce rates would be him either taking over the Fed or putting a puppet in place and having them drop rates, we sort of have to follow them or risk mad currency arbitrage.
 
matt100 said:
I think the only thing that would be unpredictable and would reduce rates would be him either taking over the Fed or putting a puppet in place and having them drop rates, we sort of have to follow them or risk mad currency arbitrage.
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Watch this space, as the new guy (thats Trumps choice) starts in May iirc.

As you say, he's made no secret that he wants rates to drop (likely due to their US bond shenanigans) but if that goes against fiscal prudence, made worse in the face of his actions in Iran, then the markets are going to react very badly with the perception/realisation of the diminished independence of the Fed.
 
Freakbro said:
As you say, he's made no secret that he wants rates to drop (likely due to their US bond shenanigans) but if that goes against fiscal prudence, made worse in the face of his actions in Iran, then the markets are going to react very badly with the perception/realisation of the diminished independence of the Fed.
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I didn't know that was going to happen. If they reduce US rates like you say against all fiscal prudence, don't you think that would raise rates here?

Also, also on the subject of Trump ( :mad: ) how are we feeling about locking in for 3yrs versus 5? That would mean remortgaging 6 months after his official term is over. If it all goes a bit Jan 6th again - then I can't imagine that would be a great time to be remortgaging? :o
 
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Scam said:
I didn't know that was going to happen. If they reduce US rates like you say against all fiscal prudence, don't you think that would raise rates here?

Also, also on the subject of Trump ( :mad: ) how are we feeling about locking in for 3yrs versus 5? That would mean remortgaging 6 months after his official term is over. If it all goes a bit Jan 6th again - then I can't imagine that would be a great time to be remortgaging? :o
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Locked in a rate for ours yesterday and went for 3 years. Partly because 5 rates aren't great, and i'd hope the world has some form of stability with the economy by then. I'm also nervous that 2 years may be too short - plus the 2 year rates have gone up a fair bit, so I read that as lenders not anticipating any short term reprieve.

Our mortgage isn't due to end till August, so we've got a few months still if things do blow over and settle down, we can always secure a new rate.
 
Scam said:
I didn't know that was going to happen. If they reduce US rates like you say against all fiscal prudence, don't you think that would raise rates here?
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I've absolutely no idea what would happen, we could be in pretty uncharted waters.

Though the guy he's nominated, Kevin Warsh, agrees with Trumps general agenda, it doesnt sound like he's a loyalist patsy. He's seen a safer pair of hands in the markets eyes at this stage than his initial choice.

But there's so much more going on that could affect things too, who knows what's going to happen to our rates this year!
 
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Scam said:
I didn't know that was going to happen. If they reduce US rates like you say against all fiscal prudence, don't you think that would raise rates here?
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as i understand it, at least last time, interest rates increased because the BOE wanted less money in our hands, so that we could afford less, and so prices can't increase as much because no one can afford the higher prices, thus bringing down inflation.

i'm not sure what increasing the base rate here in the uk would do or link to americca in that their own unstable uncertain ways, wont mean we have too much money in our hands. it may increase the rates banks charge though.

but i know next to nothing so could easily be wrong. jsut what i undertstood last time.
 
But the prices of everything going up are not things we can generally do without; Petrol, energy, food, water. Pretty unsustainable to just keep rising rates when literally anything happens globally.
 
jaybee said:
Pretty unsustainable to just keep rising rates when literally anything happens globally.
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Well it’s not just “anything” it’s a massive conflict that looks like totally wrecking a good proportion of the world’s oil supply.

I don’t think it matters what actually gets more expensive, it all adds to inflation and the way to cool that is to decrease spending by making people feel poorer overall.
 
2 Year: 3.99%
3 Year: 3.95%
5 Year: 4.07%

Broker updated us with these rates today. I was going to go for a 5year @ 3.7 ish.....but think I've just go 3 years now with rates creeping up.
 
jaybee said:
But the prices of everything going up are not things we can generally do without; Petrol, energy, food, water. Pretty unsustainable to just keep rising rates when literally anything happens globally.
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Yep, they put prices up immediately and few things ever drop again. Water is the biggest scam, people should have gone to prison for that whole thing.
 
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