| Remortgage 09:48 - Sep 27 with 4960 views | clive_baker |
Blimey.
Boring I know but my fixed period ends in summer '23, I'm too early to lock a rate in now anywhere and by the time I can the BOE base will likely be up another 0.5% - 0.75%. I'm looking at an increase from 1.8% that I'm on now to something like 4% - 4.5% I imagine. I've got 50% LTV, 2 incomes, so relatively low risk from a lenders perspective.
On £300k of debt its a decent chunk of change, looking at £400 - £500 a month more from the summer, plus inflationary pressures and utilities etc.
Good news for those with more savings than debt innit, I guess they're the the ones that vote Tory. |  |
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| Remortgage on 11:14 - Sep 27 with 1377 views | N2_Blue |
| Remortgage on 11:11 - Sep 27 by OsborneOneNil |
I’m a Mortgage Adviser and have re-mortgaged a fair few clients recently who were still in a fixed rate period, and have ‘paid’ the ERC to jump deals.
Many of these were early this year, with the rates still sub 1.8% for 5 years. Seems crazy low now. |
I thought about this a few months ago, kicking myself i didn't go through with it |  |
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| Remortgage on 11:19 - Sep 27 with 1364 views | ibbleobble |
| Remortgage on 10:03 - Sep 27 by StokieBlue |
Any evidence for better liquidity due to the stamp duty increase?
Most people in the field have been saying that all that has/will happen is that sellers just put the price up for the amount people are saving in stamp duty.
I highly doubt it'll be effective in increasing liquidity.
SB |
I’m a first time buyer, it’s just saved me £12k. That’s the saving that’s given me better liquidity. To your point about people putting house prices up to take advantage of it, that’s speculation. Ultimately its up to the buyer whether they’re prepared to pay it. Will the market inflate because of it in the midst of an energy crisis, and increasing interest rates etc? Possibly but we negotiated our vendor down as a result of these issues. |  | | |
| Remortgage on 11:26 - Sep 27 with 1346 views | clive_baker |
| Remortgage on 11:04 - Sep 27 by Charlie_pl_baxter |
In a similar position although we finish in Feb so may be able to lock a deal in if anyone will let us. Regarding debt vs savings my dad was saying banks aren't really passing on the higher interest rates to savers atm so they are getting screwed over also. I'm sure the bankers will all get their new higher bonuses though... |
You can probably lock in a deal now. I would get an application in the system before November, you can always pull out of it but at least you'll get todays rate locked in. | |
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| Remortgage on 11:32 - Sep 27 with 1332 views | clive_baker |
| Remortgage on 11:11 - Sep 27 by OsborneOneNil |
I’m a Mortgage Adviser and have re-mortgaged a fair few clients recently who were still in a fixed rate period, and have ‘paid’ the ERC to jump deals.
Many of these were early this year, with the rates still sub 1.8% for 5 years. Seems crazy low now. |
I was just looking, today I can get 3.49% fixed for 7 years with Barclays. To pay my current one early is about £2.5k + the opportunity cost i.e. the 9 months of additional interest I'll pay vs. my current rate (c. £3.5k). So essentially writing off £6k over the next 9 months, to have 3.5% for the following 7 years, which I would imagine will look very cheap in 12 months time and probably pay back over that period.
I'm in that middle ground. If I was fixed into 2024 I wouldn't consider it, and if I was fixed until early 2023 I would just lock in the rates now to switch at the end of my fixed period. I'm in that horrible spot of being 9 months from the end of my term and knowing rates will probably be 1% - 2% higher by the time I can do anything. | |
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| Remortgage on 11:38 - Sep 27 with 1310 views | hype313 |
Feel for you, that's a heck of a jump next year.
I fixed last year for 5 years at a really low rate, had the option of a 10 year deal and kicking myself that we didn't, going to try and overpay over the next 4 years so when we come around to re mortgaging our balance will be a lot lower, at best we will be paying the same as we are now on a lower mortgage, at worst we will be paying vastly more.
Effing Tories, they need to be kicked out now. |  |
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| Remortgage on 11:39 - Sep 27 with 1309 views | ElderGrizzly |
| Remortgage on 11:32 - Sep 27 by clive_baker |
I was just looking, today I can get 3.49% fixed for 7 years with Barclays. To pay my current one early is about £2.5k + the opportunity cost i.e. the 9 months of additional interest I'll pay vs. my current rate (c. £3.5k). So essentially writing off £6k over the next 9 months, to have 3.5% for the following 7 years, which I would imagine will look very cheap in 12 months time and probably pay back over that period.
I'm in that middle ground. If I was fixed into 2024 I wouldn't consider it, and if I was fixed until early 2023 I would just lock in the rates now to switch at the end of my fixed period. I'm in that horrible spot of being 9 months from the end of my term and knowing rates will probably be 1% - 2% higher by the time I can do anything. |
Barclays are doing 5 month pre-end lock-ins right now. Used to be 3 months.
My brother talked to them yesterday and that 7 year deal was what he was considering. About £5k of ERC, but more than paid for over the 7 years.
Mortgage rates are going to be 6 or 7% by the middle of next year. [Post edited 27 Sep 2022 11:39]
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| Remortgage on 11:42 - Sep 27 with 1303 views | itfcjoe |
| Remortgage on 10:17 - Sep 27 by PrideOfTheEast |
Talk to your mortgage providers. Suspect going interest only for a period might become an option for some. If not, extend the term as far as you can. The industry will have to flex. |
Depends on age though, a lot of people I know had already pushed their end date out to basically 75th birthday to get a bit more money at the time and are sitting on 40 year terms with nowhere to go
We fixed ours for 10 years in 2020 so I'm fairly lucky |  |
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| Remortgage on 11:46 - Sep 27 with 1290 views | Kieran_Knows |
| Remortgage on 11:38 - Sep 27 by hype313 |
Feel for you, that's a heck of a jump next year.
I fixed last year for 5 years at a really low rate, had the option of a 10 year deal and kicking myself that we didn't, going to try and overpay over the next 4 years so when we come around to re mortgaging our balance will be a lot lower, at best we will be paying the same as we are now on a lower mortgage, at worst we will be paying vastly more.
Effing Tories, they need to be kicked out now. |
Sounds like we're in a very similar position! We're on 1.41% until October 2026, but did have the option of 10 years at the time. We're also overpaying, which we was told our payments over the next 5 years, will reduce our term by 5 years. |  |
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| Remortgage on 11:46 - Sep 27 with 1291 views | hype313 |
| Remortgage on 11:39 - Sep 27 by ElderGrizzly |
Barclays are doing 5 month pre-end lock-ins right now. Used to be 3 months.
My brother talked to them yesterday and that 7 year deal was what he was considering. About £5k of ERC, but more than paid for over the 7 years.
Mortgage rates are going to be 6 or 7% by the middle of next year. [Post edited 27 Sep 2022 11:39]
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Banks guarantee low mortgage rates for nine months
Banks and building societies are offering to guarantee mortgage rates for an unprecedented nine months to help borrowers avoid ruinously high repayments next year.
Charlotte Gifford reports:
Normally homeowners are able to lock into a fixed-term mortgage rate around three months before the existing deal expires, so long as they stay with their lender.
But major lenders including Barclays, First Direct, HSBC and NatWest are letting customers begin a “product transfer” between four and six months before their current deal comes up for renewal.
Simon Gammon of Knight Frank said Nationwide was offering the most generous window — “they give you up to three months in which to get the mortgage offer approved and then you have six months to use it”, he said.
In effect this guarantees the rate for nine months.
By getting a new deal now, borrowers could stand to save hundreds if not thousands of pounds. | |
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| Remortgage on 11:49 - Sep 27 with 1271 views | ElderGrizzly |
| Remortgage on 11:46 - Sep 27 by hype313 |
Banks guarantee low mortgage rates for nine months
Banks and building societies are offering to guarantee mortgage rates for an unprecedented nine months to help borrowers avoid ruinously high repayments next year.
Charlotte Gifford reports:
Normally homeowners are able to lock into a fixed-term mortgage rate around three months before the existing deal expires, so long as they stay with their lender.
But major lenders including Barclays, First Direct, HSBC and NatWest are letting customers begin a “product transfer” between four and six months before their current deal comes up for renewal.
Simon Gammon of Knight Frank said Nationwide was offering the most generous window — “they give you up to three months in which to get the mortgage offer approved and then you have six months to use it”, he said.
In effect this guarantees the rate for nine months.
By getting a new deal now, borrowers could stand to save hundreds if not thousands of pounds. |
Yep, what I was saying above. Barclays are 5 months now.
Nationwide is very generous! | | | |
| Remortgage on 11:53 - Sep 27 with 1263 views | clive_baker |
| Remortgage on 11:49 - Sep 27 by ElderGrizzly |
Yep, what I was saying above. Barclays are 5 months now.
Nationwide is very generous! |
If, hypothetically, I had 8 months left on my mortgage. Could I get in the system for Barclays with a view to switching in 5 months? Then in Feb I've had 5 more months of benefitting from my lower rate, and my ERC is also lower (as it's calculated daily, and I'm then only 4 months out from completion of my existing fixed rate).
Or does it stipulate that you need to be within 5 months of the end of a fixed deal? | |
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| Remortgage on 12:08 - Sep 27 with 1239 views | Bellevueblue |
I'm on a 2.2% 5 year fixed ending December '23 and starting to panic a bit.
We bought a fixer-upper so now with the works finished sit between 50% and 60% LTV but now have a low interest loan to pay back now.
Looking at a max of £3.7k ERC to dip out a year early, drops to £1.8k from Jan so could be an option but ideally I'd stick with Natwest to avoid a credit check as my wife reduced her hours with 2 small kids.
Might have to get some professional help at this rate | | | |
| Remortgage on 12:09 - Sep 27 with 1235 views | StokieBlue |
| Remortgage on 11:19 - Sep 27 by ibbleobble |
I’m a first time buyer, it’s just saved me £12k. That’s the saving that’s given me better liquidity. To your point about people putting house prices up to take advantage of it, that’s speculation. Ultimately its up to the buyer whether they’re prepared to pay it. Will the market inflate because of it in the midst of an energy crisis, and increasing interest rates etc? Possibly but we negotiated our vendor down as a result of these issues. |
So no evidence?
You've based you're entire position on an ancedotal situation and then said that my point is speculation even though it's the view of the majority in the industry.
This really isn't how it works, you need to backup your assertions, not say that others asking for evidence are speculating (especially when it's not the case).
SB |  |
| Avatar - IC410 - Tadpoles Nebula |
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| Remortgage on 12:26 - Sep 27 with 1189 views | Charlie_pl_baxter |
If anyone is thinking of going interest only but worried about the prospect of not paying anything off the principle you can (as you should anyway) put the difference between your repayment rate and the interest only rate into investments or savings (tax-free ISA might be a good option for those not already using this). What do more financially savvy types think of this as an option? |  |
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| Remortgage on 12:30 - Sep 27 with 1178 views | Radlett_blue |
| Remortgage on 11:05 - Sep 27 by StokieBlue |
I should have been clearer, as of yesterday, our 5Y bonds yielded more than either.
Regardless of implicit guarantees (which it would be interesting to see if they now honoured), this is a rubbish state for UK bonds, they were up 150bp yesterday. In real terms that makes the measures announced by the Tories far more expensive than they originally claimed due to increased borrowing costs.
It's a total shower.
SB |
Yes, the markets have given the thumbs down to Truss's initial package & hard to disagree with that view. |  |
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| Remortgage on 12:32 - Sep 27 with 1172 views | OsborneOneNil |
| Remortgage on 12:08 - Sep 27 by Bellevueblue |
I'm on a 2.2% 5 year fixed ending December '23 and starting to panic a bit.
We bought a fixer-upper so now with the works finished sit between 50% and 60% LTV but now have a low interest loan to pay back now.
Looking at a max of £3.7k ERC to dip out a year early, drops to £1.8k from Jan so could be an option but ideally I'd stick with Natwest to avoid a credit check as my wife reduced her hours with 2 small kids.
Might have to get some professional help at this rate |
Problem is, you can't leave a Nat West deal in January to take a new Nat West deal. |  | | |
| Remortgage on 12:34 - Sep 27 with 1156 views | OsborneOneNil |
| Remortgage on 11:32 - Sep 27 by clive_baker |
I was just looking, today I can get 3.49% fixed for 7 years with Barclays. To pay my current one early is about £2.5k + the opportunity cost i.e. the 9 months of additional interest I'll pay vs. my current rate (c. £3.5k). So essentially writing off £6k over the next 9 months, to have 3.5% for the following 7 years, which I would imagine will look very cheap in 12 months time and probably pay back over that period.
I'm in that middle ground. If I was fixed into 2024 I wouldn't consider it, and if I was fixed until early 2023 I would just lock in the rates now to switch at the end of my fixed period. I'm in that horrible spot of being 9 months from the end of my term and knowing rates will probably be 1% - 2% higher by the time I can do anything. |
The biggest regret is that you could have done this in January and had a 10 year @ 1.9%. Not quite so attractive now, but may well be far better than what we face in the next 24 months.
No one saw this rise coming. Not at this speed anyway. | | | |
| Remortgage on 12:35 - Sep 27 with 1149 views | mutters |
| Remortgage on 11:11 - Sep 27 by OsborneOneNil |
I’m a Mortgage Adviser and have re-mortgaged a fair few clients recently who were still in a fixed rate period, and have ‘paid’ the ERC to jump deals.
Many of these were early this year, with the rates still sub 1.8% for 5 years. Seems crazy low now. |
Have been incredibly fortunate with my deal. Got a Mortgage in Principle agreed in August last year at 1.21% for 5 years. House completed in Feb this year after many delays. At the time it was frustrating however now that delay meant I started my mortgage later so might be able to ride out this turbulence. I was just within the 6 month period before the lender would have asked me to reapply.
Bonkers how much has changed in such a short time in the market. There is no way I could afford the house now compared to just 6 months ago based on monthly spend |  |
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| Remortgage on 12:37 - Sep 27 with 1132 views | clive_baker |
| Remortgage on 12:26 - Sep 27 by Charlie_pl_baxter |
If anyone is thinking of going interest only but worried about the prospect of not paying anything off the principle you can (as you should anyway) put the difference between your repayment rate and the interest only rate into investments or savings (tax-free ISA might be a good option for those not already using this). What do more financially savvy types think of this as an option? |
You can also over pay, I think mine is up to 10% of the value of the mortgage, which is far higher than the equity element of the repayments anyway. So in theory you could switch to interest only so you're only committed to paying the interest for a fixed period, but still overpay as and when you can, but not having the commitment to doing so.
Not financial advice, just my tuppence. | |
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| Remortgage on 12:37 - Sep 27 with 1132 views | OsborneOneNil |
| Remortgage on 12:26 - Sep 27 by Charlie_pl_baxter |
If anyone is thinking of going interest only but worried about the prospect of not paying anything off the principle you can (as you should anyway) put the difference between your repayment rate and the interest only rate into investments or savings (tax-free ISA might be a good option for those not already using this). What do more financially savvy types think of this as an option? |
I think the criteria around Interest Only may ease as lenders will have to offer borrowers an option to withstand this rise in rates/costs.
Of course.....put the difference (or what you can afford) into savings or just increase your DD to ensure the capital is reducing. | | | |
| Remortgage on 12:39 - Sep 27 with 1121 views | OsborneOneNil |
| Remortgage on 11:14 - Sep 27 by N2_Blue |
I thought about this a few months ago, kicking myself i didn't go through with it |
It was only October last year where we were arranging 5 year fixed rates with Santander at 0.99%.
Had a client with a £6,000 exit fee who we put on this rate. He will of made the £6k up in 10 months of payments. | | | |
| Remortgage on 12:49 - Sep 27 with 1097 views | clive_baker |
| Remortgage on 12:34 - Sep 27 by OsborneOneNil |
The biggest regret is that you could have done this in January and had a 10 year @ 1.9%. Not quite so attractive now, but may well be far better than what we face in the next 24 months.
No one saw this rise coming. Not at this speed anyway. |
Don't! What planet was I on thinking that extra 0.25% wasn't worth sucking up haha. It was less the compelling rate I was worried about, and more the nervousness of an ERC on the long term deals. I've had quite a nomadic life, I don't like being locked in :) | |
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| Remortgage on 12:50 - Sep 27 with 1093 views | giant_stow |
Thats bludy harsh Clive - sorry to hear this.
In the wiser sense, surely we must be looking at house price drops now, but how big? |  |
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| Remortgage on 13:02 - Sep 27 with 1070 views | codiblue |
In case it helps......we have just been through this. We had a 1.73% that ends Dec 1st. So been experiencing the early part of this.
Went via a broker (Habito). They sourced a few providers that fix 6 months ahead. So we locked in a rate in July for Dec. Still nearly double previous, but better than it might've been.
Key message is some providers do lock in 6 months ahead. Or they did. | | | |
| Remortgage on 13:29 - Sep 27 with 1032 views | DinDjarin |
| Remortgage on 12:50 - Sep 27 by giant_stow |
Thats bludy harsh Clive - sorry to hear this.
In the wiser sense, surely we must be looking at house price drops now, but how big? |
Lenders are offering 90k less to average earners so I would say higher end prices may drop 400k+ but will be more demand for the 2 - 400k prices so no idea how it will play out. |  | | |
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