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Mortgage Interest Rates

Discussion in 'Home and Garden' started by Psycho Sonny, 11 Mar 2020.

  1. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 33,669

    Looks like I was right telling everyone to fix for 2 years. Slashed again.

    Mine is due for renewal next year earlier I can switch without penalty is May 2021 as it was acquired in August 2016.

    I'm currently paying 2.84% due to buying before they tanked last time around. 2 weeks before my move in date.

    I think it is a 1% fine within the last year with nationwide.

    I am being offered 1.14% to switch now.

    How long do you think this rate will last? I bet you it lasts until April next year a month before my renewal.

    Bloody typical.
     
  2. chroniclard

    Capodecina

    Joined: 23 Apr 2014

    Posts: 16,316

    Location: Hertfordshire

    Unsure, but hopefully a good time to consolidate our two properties into a single mortgage. :)
     
  3. Arcane

    Mobster

    Joined: 19 Aug 2005

    Posts: 3,639

    Location: Ealing, London

    I've gone tracker in recent years, with no limit on overpayments it's been great whilst the rates are so low.
     
  4. HungryHippos

    Sgarrista

    Joined: 25 Mar 2004

    Posts: 8,152

    Location: Fareham

    On a tracker since September at base rate +1.09% so now I am on 1.34% instead of 1.84% (fee free).
     
  5. Maccy

    Commissario

    Joined: 23 Nov 2004

    Posts: 36,849

    Location: Herts

    How long does it typically take between the bank announcing the change in interest rate and the updates to rates for mortgages, loans etc?
     
  6. Mahonyy

    Gangster

    Joined: 13 Oct 2016

    Posts: 200

    Location: Bucks

    Nationwide is normally pretty quick ~1 month
     
  7. booyaka

    Capodecina

    Joined: 19 Jan 2006

    Posts: 13,164

    tracker mortgage - normally 30 days,
    loans - these are not normally directly impacted by base rate changes. Each lender sets their own rates.
     
  8. MikeTheNative

    Sgarrista

    Joined: 17 Jun 2012

    Posts: 8,412

    Location: South Wales

    We got fixed 5 year around summer last year. Rate was pretty low (1.59%) anyways so not to annoyed about the lower rates.
     
  9. touch

    Capodecina

    Joined: 28 Oct 2006

    Posts: 11,417

    Location: Sufferlandria

    I've just received approval of my mortgage application today.
    Completion date is still 12 weeks away. Am I likely to be able to switch to a better rate before drawing down the mortgage in that time?
     
  10. ivrytwr3

    Mobster

    Joined: 25 Aug 2006

    Posts: 3,934

    tracker - 1.5% atm, hoping it will drop back to 1% in the next few days/month (Santander).
     
  11. ivrytwr3

    Mobster

    Joined: 25 Aug 2006

    Posts: 3,934

    If you've only had an AIP then nothing is signed and you look for another rate - i'd defintiely be waiting in case of a drop (if it doesn't stop the house sale form going through!)
     
  12. ~Divine~Wind~

    Underboss

    Joined: 14 Jun 2004

    Posts: 16,006

    Location: Newcastle U/T

    Just agreed to a 1.69% 2 yr fix (then todays interst drops doh!) with Santander
    pretty much 50% LTV 20 years left
    Looking to getting everythign down on paper for an extension and a few overpayment here and there.
    Then lookign to release any remaining monies for having the extension sorted
     
  13. touch

    Capodecina

    Joined: 28 Oct 2006

    Posts: 11,417

    Location: Sufferlandria

    It's not an AIP, it's a full mortgage application (although I still havn't signed anything - just received the approval by email this morning so not got the paperwork yet). It's a 2 year fix at 1.43% so i'm happy with the rate anyway but it would be nice if I was able to get it a little lower. I won't actually be drawing down the funds for 12 weeks yet, so I'm not sure if there will be a chance to review the fixed term deal during this time?
     
  14. hornetstinger

    Soldato

    Joined: 6 Sep 2016

    Posts: 6,965

    Mine is 2.19% and only have £32,000 left to pay and will be £28,000 at the end of this month (over payment)

    Would hate to been on 15% like parentd
     
  15. Felix

    Mobster

    Joined: 25 Jan 2003

    Posts: 2,702

    You were right to telling everyone to fix yet had they been on a variable rate they would now see their mortgage costs drop.... so in fact you weren't right.

    Apparently this is a temporary adjustment to the rate to help in the short term.
     
  16. Tee Hee Johnson

    Mobster

    Joined: 30 May 2007

    Posts: 4,264

    Location: Glasgow, Scotland

    Our 2 year one comes to fruition about May, so nice timing for us. Can re-mortgage with some extra money saved and the new low interest rates!
     
  17. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 33,669

    You will need to submit a whole new application and get them to terminate the current one. After rates have adjusted.

    I know this because rates changed 10 days before my purchase date. I was told whole new application. I didn't want to hold up the deal or cause it to collapse so I never bothered submitting a new application so late.
     
  18. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 33,669

    I was right in the fact that people were suggesting fixing for 5 or 10 years and I said fix for 2 max. As I couldn't see rates going higher because of brexit. Looks like corona virus was the cause however I was still right in terms of not going for a 5 or 10 year everyone else was telling people to go for. I said fix for the shortest possible deal and renew when it was done.

    Trackers overall are far too risky for most people so 2 year fix is a much better proposition for most.

    I will be going to a 2 year fix when mine is up
     
  19. samcat

    Mobster

    Joined: 8 Nov 2002

    Posts: 3,266

    Location: Near Bristol, Uk

    I can do an early renewal soon (3-4 months), and if rates are still at current level I will be fixing for 5 years, maybe even 10 (so long as product is portable).
    I cannot envisage them going lower, and if they do it will only be fractional so not much of a 'loss'. I would rather the stability of a low rate with option of overpayments for 5 years+ than the risk of rates going UP and me only having a short term on it.

    But to each their own. We all have different circumstances and different appetite for risk.
     
  20. Bluecube

    Wise Guy

    Joined: 20 Feb 2011

    Posts: 2,061

    Guess who fixed for ten years... On the plus side 2.94% is naff all for any sort of loan.

    edit: 8 1/2 years to go with criminal early repayment fees before anyone asks :D