Mortgage Rate Rises

BUDFORCE

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Freakbro said:
In news that will suprise no-one, mortgage approvals dropped to a 2 year low in Nov

www.bbc.co.uk

Mortgage approvals sink to lowest level in two years

New figures from the Bank of England show that they dropped to their lowest level since the middle of the pandemic.
www.bbc.co.uk

I think we'll certainly see house prices fall in '23 just depends how much.
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I've gone from ar the very busiest 6 mortgage applications a day, to , hmmmm, maybe the last new one I got was, start of December?
 

BUDFORCE

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potatolord said:
Isn't it normal to see a drop in sales in December? Was it different in previous years?
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I've never known it this quiet, actually in 2008 was similar sat there watching DVDs on my work laptop for 3 months.

Today I logged on, half sorted on thing out work related.

Played PUBG from 10:30am until about half 2, had a shower, now watching Star Trek Voyager.
 

jaybee

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Syla5 said:
You can start your application with a different lender and you can get an offer from that that wont kick in your ERC charges. This was a mistake i made when i remortgages last year, i missed out on 1.89% 10 year fix because i didn't realise this tip in the process. When i did arrange my remortgage it was at 2.39% and i still paid £1,850 ERC.
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413x said:
I also didn't know this tip. Similar scenario.

Paid erc with 8 months to go. But could have fixed at sub 1.2 with over 14 months to go. New deal would have been valid into the 1 year erc window.


Why don't they teach you this in school?
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What is the tip sorry? Think I missed it or don't understand it. Is it to start a mortgage application for when you re-mortgage nice and early so it kicks in as the old one finishes? Apologies.
 

krooton

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jaybee said:
What is the tip sorry? Think I missed it or don't understand it. Is it to start a mortgage application for when you re-mortgage nice and early so it kicks in as the old one finishes? Apologies.
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I think it's that you can soft-lock a deal with a new lender 6 months out, but you don't HAVE to go through with it.

Whereas re-mortgaging with your existing lender will usually have a shorter window, and early repayment charges outside of that. My lender only lets me soft-lock a new deal 90 days before the end of the fix.
 

jaybee

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krooton said:
I think it's that you can soft-lock a deal with a new lender 6 months out, but you don't HAVE to go through with it.

Whereas re-mortgaging with your existing lender will usually have a shorter window, and early repayment charges outside of that. My lender only lets me soft-lock a new deal 90 days before the end of the fix.
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Thanks Krooton. So by soft lock you mean basically apply for a re-motgage deal and then you get it accepted as an offer in principal? So you do this at say 2 or 3 of them at different intervals (not sure if this affects credit rating) so you have a few different options?

I'm not sure I am understanding as this seems obvious to me? I'm not wishing to downplay any advice here and welcome any of it. :) Some of us are very new to this including me.
 

413x

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jaybee said:
What is the tip sorry? Think I missed it or don't understand it. Is it to start a mortgage application for when you re-mortgage nice and early so it kicks in as the old one finishes? Apologies.
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unwashed potato! said:
Curious to know this too. The tip isn't clear.
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I assumed when I was coming to remortgage for first time once you 'agree' to a deal. It was binding. I also didn't know there was any holding period. Didn't know you could basically "hedge" by grabbing a deal basically perpetually holding for months.
 

jaybee

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413x said:
I assumed when I was coming to remortgage for first time once you 'agree' to a deal. It was binding. I also didn't know there was any holding period. Didn't know you could basically "hedge" by grabbing a deal basically perpetually holding for months.
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I think you are describing basically:

1: Arranging an offer in principal and it being accepted
2: Allowing it to run for the number of months specified as it being valid to start "up until"

I would have thought both things were massively obvious? Is this not mortgage 101 rule number 1 of the things you find out? It's literally one of the first things I came to realize when I went to take out our first mortgage in that they have periods of validity in terms of being able to "start" them, periods of where the X percent fixed rate will apply to, etc etc ?
 

DJMK4

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I'm seeing rates start from around 3.4-3.5% onwards on money saving expert comparison tool ? I thought it was in the upper 4.8%'s?

This is for a remortgage search


Edit: on compare the market they are starting at around 4.7%


Open question how reliable is Martin Lewis tool "Mortgage Best Buys" ? Comparison ? Seems out of par with most of the comparison sites
 
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Kill_Phil

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DJMK4 said:
I'm seeing rates start from around 3.4-3.5% onwards on money saving expert comparison tool ? I thought it was in the upper 4.8%'s?

This is for a remortgage search


Edit: on compare the market they are starting at around 4.7%


Open question how reliable is Martin Lewis tool "Mortgage Best Buys" ? Where does it get it's data from and how quickly does it update ?
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Sure it's not trackers you were looking at?
 

DJMK4

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a lot of the lower ones are with building sociaties but it doeant say tracker but it does say discounted on some , you do get the odd tracker , I'll have to have a longer look when I get the chance .

One doesn't say it's a tracker , intial term 2 years and goes in to cost info, the fact that it says variable In brackets I'm.not sure about

E.g.

3.70% (variable)

27 months x £664.84
 
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Psiko

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DJMK4 said:
a lot of the lower ones are with building sociaties but it doeant say tracker but it does say discounted on some , you do get the odd tracker , I'll have to have a longer look when I get the chance .

One doesn't say it's a tracker , intial term 2 years and goes in to cost info, the fact that it says variable In brackets I'm.not sure about

E.g.

3.70% (variable)

27 months x £664.84
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Tracker and discounted variable are different but neither are fixed. Like fixed mortgages, they usually behave this way for an initial period of time (say 2 years or 5 years) and then go back to the lender's standard variable rate (SVR).

Trackers are tied to some benchmark, usually the BoE base rate. So if the BoE increases its rate by 0.5% then the next month your interest rate goes up by 0.5%.

Discounted variable means that for the initial period you get a discount to the SVR. So maybe today the SVR is 7% and you get a 4% disxount so you pay 3%. The lender can change its SVR when it wants to. However they typically move vaguely in line with the BoE base rate since this determines the lender's cost of funding and they want to remain competitive with other lenders (they don't want you to refinance with someone else who is cheaper). There's often a lag in the base rate changes feeding through though.

So they are similar but not the same.
 

adam cool dude

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SirChumpalot said:
We were lucky.

Moved house in June and just snuck in before the rate rises. Locked in for 10 years at 1.7%. Utterly madness the differencr we'd be paying if we were a week or so later.
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Same when all this kicked off I just got into the 150 day window to renew. Although our mortgage is very low so a rate hike wouldn't effect as much. Even though we have gone from 1.75% to 3.48% it is only £40 extra a month which is still not nice but more than manageable. The increase over 3 years is less than this year's increase in energy bills!
 
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EdGey

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Fixed at 1.94% for another 3 years here and we bought right before the covid price surge - I feel quite lucky.

To think I would have locked in for 10 years if tesco bank wasn't such a shower of brown stuff.
 
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