Mortgage Interest Rates

[£15]

I was hoping to benefit from a reduction in the base rate as my mortgage defaults to the Santander's SVR which is 4.99% next month, but I think it's come too late for me. If I don't pick a new deal asap then any saving will be reduced by the extra I have to pay next month. /headbang

I've fixed for many, many years due to fear of rate rises that never came. So this time I'm seriously thinking about a 2 year tracker. But knowing my luck I'll be hit with those rises after I sign on the dotted line. Having said that, the 2yr variable rate, BoE +0.84%, with £999 fee, has no early repayment charges (unlike the fixed deals which are very high) so I could theoretically change deals again, but then I'm paying more product fees and wasting any savings I'm making...arrgghhh.

 

[HungryHippos]

I was hoping to benefit from a reduction in the base rate as my mortgage defaults to the Santander's SVR which is 4.99% next month, but I think it's come too late for me. If I don't pick a new deal asap then any saving will be reduced by the extra I have to pay next month. /headbang

I've fixed for many, many years due to fear of rate rises that never came. So this time I'm seriously thinking about a 2 year tracker. But knowing my luck I'll be hit with those rises after I sign on the dotted line. Having said that, the 2yr variable rate, BoE +0.84%, with £999 fee, has no early repayment charges (unlike the fixed deals which are very high) so I could theoretically change deals again, but then I'm paying more product fees and wasting any savings I'm making...arrgghhh.

I did a 2 year tracker with Nationwide, no fees, and no ERC so can basically switch away whenever I want. Base rate + 1.09% was my figure (60% LTV).

I could then grab a cheaper fix if I wanted, or leave it as I don't think interest rates are going anywhere anytime soon.

 

[Journey]

I'll be waiting to take advantage of the reductions later in the year when the rate drops to 0% or negative 0.25%. I'll be extending the borrowing in order to do a major expansion of the property and its surroundings, but looking for a 15 year term.

It's amazing how much you can save even if you are tied in at a higher rate with an exit fee, especially if it is a higher 2.80%+ rate on a decent chunk of money.

Quoting myself...

Rates cut to 0.1% they will go negative by the years end at the latest.

 

[Simon]

Quoting myself...

Rates cut to 0.1% they will go negative by the years end at the latest.

Good prediction but I’m sure the reasons for it were much different. Edit Ah this thread isn’t very old

thing is it doesn’t really make a huge diff to most does it. I think the cut in total has saved about £50 for me

 

[Psycho Sonny]

Good prediction but I’m sure the reasons for it were much different. Edit Ah this thread isn’t very old

thing is it doesn’t really make a huge diff to most does it. I think the cut in total has saved about £50 for me

If I could switch now it would make a massive difference. I'm at 2.84% and when this new rate hits I'd be down to like 0.85%. A whole 2% off per year. which is thousands of pounds and tens of thousands over the term.

 

[Psycho Sonny]

Quoting myself...

Rates cut to 0.1% they will go negative by the years end at the latest.

Negative? You really think so? I know this is unprecedented times but it would be crazy if that happened. We are all in major trouble though. Peoples homes are about to lose millions off them.

 

[Simon]

Why dont you then? whats the ERC ?

 

[Mercenary Keyboard Warrior]

Quoting myself...

Rates cut to 0.1% they will go negative by the years end at the latest.

Maybe for institutional deposits

I love the way some people just assume a change in base rate will automatically apply to mortgages. Its not that simple however, as we know the SVR for most is well above base, the rates they charge are purely competition and not related to the base rate really, unless on a specific product linked to it (BR tracker generally)
There is no guarantee they will be able to source funds to lend at a rate so low to be able to apply all base rate cuts.

There used to be a saying, why when base rates go up to mortgages go up by more and when they fall they dont pass on the whole cut. Its often actually mentioned by the BOE when they change rates that they hope (not they cant force) the lenders will pass it on in full.

Also the view by some that if this corona is fairly short lived we will see a big economic bump and as such rates will go back up quickly. The BOE want to push them up, its one of their levers as we are seeing now and when its pushed hard in one direction it leaves little scope if needed.

I would be jumping on the longest fix I could right now. For me its not worth it remortgaging, even though I fixed for 10 years about 5 years ago, I should have paid mine off before my fix technically ends, over half the term of the mortgage early.

 

[Pabl0]

I'm due to remortgage this September, sticking with nationwide preferably. Hoping for a ~1% rate depending on what happens in the next few months.

I'll be around a 75% LTV so could be wishful thinking.

 

[roadie]

I don't think there is going to be much movement on fixed rates, as the banks assume the cuts will be temporary.

Tracker rates will increase taking most of the benefit of the base rate reduction away.

 

[roadie]

Looks like Nationwide have pulled their tracker products today. I can only see fixed rates on their mortgage product page.

 

[BigBoy]

Looks like Nationwide have pulled their tracker products today. I can only see fixed rates on their mortgage product page.

confirmed, spoke with the Nationwide mortgage advisors on the phone this morning. removed as base rate is too low to be sustainable.

 

[Simon]

Quite like my nationwide 0.64% above base at the moment.

 

[Psycho Sonny]

Why dont you then? whats the ERC ?

it would be 2% meaning I am at a net zero loss/gain switching now.

i'm better off just waiting it out. ERC's is always set up to make you lose and the lender win.

 

[BigBoy]

Re-signed up with Nationwide last night, 18 years fixed for 5 at 1.69% means the monthly payment is £680 with the option to over pay (we will be topping up to £8/900pm) 45% LTV is a godsend.

 

[BUDFORCE]

A lot of mortgage lenders have started pulling products and rates. Lenders see mortgages now as more of a risk, if one lender pulls products are increases rates, the others follow suit as they don't want to be the one that stands out.

Be warned you may struggle particularly if you need to use a non-mainstream lender.

Also lenders that don't do AVM (automated valuations) are going to have an issue now as valuers are from today no longer going out.

I'm still pretty busy but I think things will slow down sharply. I've heard already of other lenders stopping all new applications completely.

 

[The_Arbiter]

Waiting for a valuer to go in on a property this week. If they aren't working means i can keep money tied up for good return. But we'll see, and i'll report back if they do go in.

 

[poosemon]

A lot of mortgage lenders have started pulling products and rates. Lenders see mortgages now as more of a risk, if one lender pulls products are increases rates, the others follow suit as they don't want to be the one that stands out.

Be warned you may struggle particularly if you need to use a non-mainstream lender.

Also lenders that don't do AVM (automated valuations) are going to have an issue now as valuers are from today no longer going out.

I'm still pretty busy but I think things will slow down sharply. I've heard already of other lenders stopping all new applications completely.

My current mortgage deal comes to an end at the end of April. Currently trying to get a remortgage through which I have received an mortgage offer for and valuation all ok. Really considering taking a slightly worse rate but a more straight forward switch with the current mortgage provider to make sure it gets done whilst things remain as they are.

Deals for comparison;

New Mortgage - 5 Year Fixed @ 1.67% - No Fees
Easy Switch - 5 Year Fixed @ 1.7% - £495 fee

In a bit of a quandary as to what to do, but don't want to go onto the 4% rate should things not complete in time or can't get same deal.

If i have a mortgage offer, and valuation approved, assuming that until the legals are done the mortgage provider could still revoke the deal?

It's a pretty straight forward switch, no extra lending etc

 

[Simon]

Just watch they don’t undervalue. I did same and wasted time when should have stuck with same provider

if you need valuation think you might be stuck anyway as I doubt they are doing them.

 

[BUDFORCE]

My current mortgage deal comes to an end at the end of April. Currently trying to get a remortgage through which I have received an mortgage offer for and valuation all ok. Really considering taking a slightly worse rate but a more straight forward switch with the current mortgage provider to make sure it gets done whilst things remain as they are.

Deals for comparison;

New Mortgage - 5 Year Fixed @ 1.67% - No Fees
Easy Switch - 5 Year Fixed @ 1.7% - £495 fee

In a bit of a quandary as to what to do, but don't want to go onto the 4% rate should things not complete in time or can't get same deal.

If i have a mortgage offer, and valuation approved, assuming that until the legals are done the mortgage provider could still revoke the deal?

It's a pretty straight forward switch, no extra lending etc

I'd say you'd be ok with what you've got. I'm guessing the solicitors are working from home or whatever, plus (assuming) its a residential mortgage offer, they are regulated and a lender shouldn't be able with withdraw that, well, under normal circumstances.

I'd say you'd be ok though.

In worst case I doubt you'll have problems in the future doing a rate switch with your current lender they probably won't do a valuation, just an AVM or not even bother at all, given they will already have a valuation of your property on file, more so the lower the loan to value.