Mortgage Rate Rises

[413x]

Until you get older, realise you havent died, and wish you had more money

Not really sure what I'd do with it if can't actually do much.
Most older people I know don't do that much.

Think I'd rather work a few days a week than do a hard stop anyway.

But it is indeed a balance. If I earnt a lot more (over 100k) and could actually retire materially earlier, might be different.

 

[413x]

Sell the house and buy a static caravan in Skegness and live off the rest. That's my backup plan.

Either that or drive 2 days a week and get 400 quid a week to top up my pension. You have to stay active one way or another so might as well get paid doing it.

Great if you are a top revenue earner and can squirrel away all that tax into a pension but for people like myself slightly above national average I will enjoy my life now.

Or sell it and take it all to a really cheap country in the sun

 

[dpbadger]

Just locked in a 'deal' from my current provider of 5.19% on a 2 year fix no fee. (I am currently on 2.19%) It starts on the 1st of September so I'm hoping a little drop might come in before then. I only have £55k left on it so it isn't such a massive hit but I'm in a shared ownership so my rent portion went up over 13% in April due to such a high RPI last October.

 

[b0rn2sk8]

Are you going to re-mortgage to buy out the shared part?

 

[Bald-Eagle22]

Just locked in a 'deal' from my current provider of 5.19% on a 2 year fix no fee. (I am currently on 2.19%) It starts on the 1st of September so I'm hoping a little drop might come in before then. I only have £55k left on it so it isn't such a massive hit but I'm in a shared ownership so my rent portion went up over 13% in April due to such a high RPI last October.

I think you will see sub 5% well before then. At your LTV it might be worth considering a 5 year fix and pay any ERD if they are due , it would literally cost hundreds to do this at year 2 Into a 5 year fix.

Thankfully my home mortage is paid up now but I have a BTL that is currently on a Tradker BOE plus 0.74% - ouch . Can fix it fee free at 4.99% for 5 years by picking up the phone however I'm confident that this will drop by somewhere in the region of 0.5% y the Autumn.

Bank swap rates are on there way down and Inflation is on target to hit 2% in the coiming months and once rates drop once or twice Richi will then have a reason fir a GE .

When will we get back to low inflation?

Rises in the cost of living have slowed. Inflation is now lower than it has been in recent years.

www.bankofengland.co.uk

 

[pc-guy]

once rates drop once or twice Richi will then have a reason fir a GE .

I got a mental image of little Rishi bouncing off Baileys big belly and yelling “drop the rate, drop the rate” like a toddler.

 

[slinxy]

depending on the rates when it comes to me looking for a new mortage package in 4 years time and if the new lease hold laws, I may look at buying out or extending the lease hold on my place and adding the cost on to the mortage.

is this possible and has anyone done it?

or I might just crush the remaining 50k on left on the mortage by that time and buy/renew the lease hold later.... I think I have another 10 years left before the lease hold doubles from £200 per year to £400 per year.
I'll be long gone by the time the lease hold fee as at something stupid but I rather deal with it now than later on in life or passing the issue to a family member.

 

[jaybee]

I was told that the maximum term I could get without a further credit check was until the age of 70

^ this

I was told I can go way further but without any further paperwork, 70 was max age.

What's the appeal of no further credit checks when re-mortgaging though? Surely when you re-mortgage you are happy to undergo additional checks to get the best deal? Are you talking about limiting yourself to your current lender as well?
Maybe I am not following, but I would have thought when re-mortgaging you would be happy to jump through various hopes to get the lowest rate no?

 

[dlockers]

What's the appeal of no further credit checks when re-mortgaging though? Surely when you re-mortgage you are happy to undergo additional checks to get the best deal? Are you talking about limiting yourself to your current lender as well?
Maybe I am not following, but I would have thought when re-mortgaging you would be happy to jump through various hopes to get the lowest rate no?

Yeah fair comment - I have two parts to my mortgage so I can't go competitive/to market. Avoiding the check was because it was increasing by a grand a month and I didn't want the potential headache of being rejected and creating further problems.

 

[tamzzy]

I have two parts to my mortgage so I can't go competitive/to market.

and it cannot be consolidated?

 

[CaptainRAVE]

What's the appeal of no further credit checks when re-mortgaging though? Surely when you re-mortgage you are happy to undergo additional checks to get the best deal? Are you talking about limiting yourself to your current lender as well?
Maybe I am not following, but I would have thought when re-mortgaging you would be happy to jump through various hopes to get the lowest rate no?

No, just sticking with the current lender in our case.

 

[dpbadger]

Are you going to re-mortgage to buy out the shared part?

No, I'm planning on moving out in a few years maybe 2-5 so when I sell it will be easier to find someone to buy 35% rather than if I buy more as when you sell it it has to be for the same % as you have or more.

 

[dlockers]

and it cannot be consolidated?

Not without the end dates aligning (i.e. fully variable), or me paying an ERC to force the end dates to align. It is a real issue in the industry. I am basically in handcuffs with Nationwide (who fortunately are the best rate available).

 

[b0rn2sk8]

No, I'm planning on moving out in a few years maybe 2-5 so when I sell it will be easier to find someone to buy 35% rather than if I buy more as when you sell it it has to be for the same % as you have or more.

I’d have thought the opposite would be the case, in that it would be easier to sell 100% than someone buying into a shared ownership. Thats on the assumption that the size of the market looking for a ‘whole property’ would be much larger than those looking for shard ownership.

Happy to be corrected one that one though.

 

[dpbadger]

When they buy it a buyer can buy more so they give me 35% and then buy a percentage off the housing association. They can't buy a smaller percentage than you already own.

With current interest rates it will be cheaper for a buyer as the rent is calculated at 1% PA of the equity that you don't own.

 

[regulus]

Replying to myself here with the benefit of 7 months hindsight since the above post, and probably a year since the original thought of selling some shares to pay off my mortgage.

Truly, thank God I didn't do this.

The stock market has been going parabolic the last 7 months, and especially the last month. I would've lost many tens of thousands. Even in this higher interest rate environment, the market is just dominating my interest repayments by many many multiples.

Once again replying to myself with about 3 months of hindsight. 4 times running now. Thank God I didn't do this. Everything marching up relentlessly.

 

[TNA]

BBC News - Mortgage rates cut but borrowing pressures remain

Mortgage rate cuts but borrowing pressure persists

More homeowners are facing the first stage of the repossession process, new figures indicate.

www.bbc.com

I wonder how much? Probably 0.25 or less.

 

[jaybee]

BBC News - Mortgage rates cut but borrowing pressures remain

Mortgage rate cuts but borrowing pressure persists

More homeowners are facing the first stage of the repossession process, new figures indicate.

www.bbc.com

I wonder how much? Probably 0.25 or less.

Several lenders are reducing their interest rates on new fixed mortgages on Friday, offering a glimmer of hope to hard-pressed borrowers.
Barclays, HSBC and TSB will cut rates slightly on new deals, but applicants still face much higher costs than many have become accustomed to.

How do places like the beeb find this info out ahead of it happening? I can't imagine mr HSBC person wakes up one morning and thinks, "yeah must phone the BBC and warn them".

 

[200sols]

Several lenders are reducing their interest rates on new fixed mortgages on Friday, offering a glimmer of hope to hard-pressed borrowers.
Barclays, HSBC and TSB will cut rates slightly on new deals, but applicants still face much higher costs than many have become accustomed to.

How do places like the beeb find this info out ahead of it happening? I can't imagine mr HSBC person wakes up one morning and thinks, "yeah must phone the BBC and warn them".

Elsewhere its reported as 'HSBC have announced' etc so presume some sort of media release.

 

[tonys]

First indications of repossession starting in that report, that isn't good.