Mortgage Rate Rises

adam cool dude said:
Maybe that is because houses are not selling now or are actually selling for less. They all have models etc for how they see the future panning out. After all they are valuing your house as a minimum over the course of that mortgage. Just because houses have recently sold for that price doesn't mean they are going to be worth that in a few years time.

Both you and I have had massively low ball valuations and are in different parts of the country so they are most likely expecting something or it is very risky.

My friend bought his two bed house in 2007 and was in negative equity for nearly ten years! It has happened before and can happen again.
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Yeah you may be on to something, it’s just frustrating in general.

Currently nationwide values it at £1k more than we paid in their app. So I’m crossing everything and hoping that’s what they actually keep when March arrives.

If we went on svr we’d be paying £1000 more a month. It’s unaffordable.
 
grudas said:
Yeah you may be on to something, it’s just frustrating in general.

Currently nationwide values it at £1k more than we paid in their app. So I’m crossing everything and hoping that’s what they actually keep when March arrives.

If we went on svr we’d be paying £1000 more a month. It’s unaffordable.
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Why don't you just get the broker to apply with a different lender and therefore a different valuer?
 
Some advice please gents, ladies.

I’m looking to get a mortgage with my brother. I’ve been mortgage free for ages so I’m out to the loop, Brother is a first time buyer. I’ve been recommended a broker by a work colleague there’s also the like of L&C which I read about on this thread which I’d presume as they’re big company compared to a lone broker may be able to get better rates?. I’ve done various affordability checks etc for what they’re worth. Is it wise to just go direct to lender (Nationwide etc) or still worth speaking to a broker to see what they can offer?

I’m weary as I’ll obviously have to hand over all the details to a broker and if I end up going direct (or vice versa) to check rates the details will flag again as already looking for a deal if that’s even the case?

Thanks in advance
 
TonTom said:
Some advice please gents, ladies.

I’m looking to get a mortgage with my brother. I’ve been mortgage free for ages so I’m out to the loop, Brother is a first time buyer. I’ve been recommended a broker by a work colleague there’s also the like of L&C which I read about on this thread which I’d presume as they’re big company compared to a lone broker may be able to get better rates?. I’ve done various affordability checks etc for what they’re worth. Is it wise to just go direct to lender (Nationwide etc) or still worth speaking to a broker to see what they can offer?

I’m weary as I’ll obviously have to hand over all the details to a broker and if I end up going direct (or vice versa) to check rates the details will flag again as already looking for a deal if that’s even the case?

Thanks in advance
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I'm 2 weeks into using L+C and they didn't really save me much money. In fact i'd rather not used them, not because of anything they have done wrong, they have been great to deal with but i like to be in charge and they are just another un-needed cog in the machine, i purchased my first home without a broker and it seemed much easier.

I guess brokers are good if people have non-usual circumstances , bad credit etc.

Can't hurt to enquire!
 
OK offers are on the table!

3 Years at 5.09, repayment £1,684.
5 Years at 4.79, repayment £1,631 (plus £995 fee).

What would the fine people of OCUK do as I'm not sure. Leaning to 3 year, as I should hit the 85% LTV after that and hopefully make some back...
 
Pants said:
OK offers are on the table!

3 Years at 5.09, repayment £1,684.
5 Years at 4.79, repayment £1,631 (plus £995 fee).

What would the fine people of OCUK do as I'm not sure. Leaning to 3 year, as I should hit the 85% LTV after that and hopefully make some back...
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The £1k fee wipes out 50% of your interest saving over the first 3 years so if you think you can secure a better rate at year 3, that may be a better option.
 
Don't forget, if you add the £1k to the mortgage balance you'll be paying interest on it for another ~20 years and will cost you another ~£260 over the first 5.
 
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BoE still not learning lessons. Cutting rates and cutting growth - they need to cut further to make borrowing cheaper to stimulate growth. And their inflation forecast being largely driven by energy expectations - again, not in anyone's control and people shouldn't be made to suffer for it. More expensive borrowing won't change this cause of inflation it will just create more hardship.
 
danlightbulb said:
BoE still not learning lessons. Cutting rates and cutting growth - they need to cut further to make borrowing cheaper to stimulate growth. And their inflation forecast being largely driven by energy expectations - again, not in anyone's control and people shouldn't be made to suffer for it. More expensive borrowing won't change this cause of inflation it will just create more hardship.
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What is your professional opinion as to the level of bank rate required to stimulate growth and do you think that a full one percent in one step would be universally welcomed on all sides?
 
Hagar said:
What is your professional opinion as to the level of bank rate required to stimulate growth and do you think that a full one percent in one step would be universally welcomed on all sides?
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I think that a 2% target is meaningless when the inflation is driven by external circumstances, and that burning the house down to try and reach an ideological 2% is foolish. The 2% target is itself arbitrary.

The policymakers (government & BoE) should commit more fully to a growth policy and allow interest rates to fall much further to stimulate this, even if it means inflation rises in the process.
 
danlightbulb said:
BoE still not learning lessons. Cutting rates and cutting growth - they need to cut further to make borrowing cheaper to stimulate growth. And their inflation forecast being largely driven by energy expectations - again, not in anyone's control and people shouldn't be made to suffer for it. More expensive borrowing won't change this cause of inflation it will just create more hardship.
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The extra inflation over the previous forecasts is about 50% energy and the rest being smaller mainly index linked prices and water bills. This is the extra inflation, the core inflation and services inflation is still pretty high as is wage growth. They wont risk an inflationary spiral, deep cuts would also punish the currency causing a feedback loop. Slow and steady ahead looks reasonable to me.

In fact Bailey has said they wouldnt be chasing these temporary spikes so looks like you agree with the BoE :p
Bailey said that while the bank expects inflation to rise again over the coming months it is almost entirely due to factors which are not directly linked to underlying cost pressures and price pressures in the economy, but “factors that we expect to be temporary.”

The single largest driver is household energy bills, he said.
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Bailey was perhaps in a bit of a bind over that inflation forecast, which predicts a peak a whole percentage point above where the BOE had it in November.

He is putting the emphasis on how underlying price pressures are continuing to ease, insisting this year’s uptick in headline CPI will be down to factors that will be temporary. In other words, they are deciding to look through any boost from things like energy bills.
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