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<p style="text-align: left;">The better half and me are hoping to move soon, offer accepted on a new place offer accepted on ours.</p>
Had an appointment with the mortgage advisor three weeks ago. He said the decision on our mortgage would between two to ten days.
Hadn't heard anything in over week so I called. Mortgage advisor said the initial product was pulled because of volatility in the market.
There seems to be further stalling. With the sale of our place we have 300k to put down and with stamp fees our new place is 450k so we only have a 150k mortgage.
<p style="text-align: center;">I sense that the bank (and possibly the weasely, shit banter monger, mortgage advisor) are holding out as long as they can as rates seem to be increasing. Am I being paranoid because I'm just about to write a snotty email and ask why are deal settled on the deadline he stated.</p>
Thanks
<p style="text-align: center;">Actually I forgot to say by the original product was pulled and was told the replacement would cost £48 a month more. 11.5k over 20 years.</p>
I’m not sure what sort of advice you’re actually looking for but we’re trying to remortgage at the moment and the whole thing is just a massive shit show.
Things are moving so quickly in the fixed rate deals I’m getting closer to stumping up some fairly hefty fees (~£1000) to get us a no strings attached tracker as a stop gap until things calm the **** down again.
Not enjoying it.
Item on the radio this am- lots of products were pulled over the weekend, so it’s not personal.
Yep, its whack-a-mole time with mortgages at moment. Likely deals are getting pulled from undeer the advisors nose so I'd maybe not word the snotty email too strongly.
We had a similar issue back in September after the mini budget. Like us you've got a small mortgage. I suspected that the mortgage brokers were focusing their effort on the customers with much larger mortgages where they could earn more. I have no evidence of that though other than all three brokers we were using never called back when they said they would.
In the end I just sorted my own mortgage out. Fortunately all the brokers confirmed it was better than anything they could get as similar deals had already been withdrawn.
The broker just makes the whole process a lot easier woodlikesbikes surprised you could find a better rate than 3 brokers I presume they are not very good and yes it can take 1 Day - 2 Weeks for an offer but your broker normally would have contact with the Lender and should be able to advise what is going on. Also, rate not guaranteed until you have the offer, I don't think the Broker is stalling why would they risk your business.
Probably more to do with this..
https://www.bbc.com/news/business-65876570
The market is really uncertain at the moment.
Imagine you’re interested in buying a new bike. All of a sudden half the bikes in the market are pulled off the shelves overnight. Bike shops wouldn’t be able to keep up with the enquiries, complaints etc that they suddenly had to deal with as 100% of punters tried to get 50% stock. Inevitably they haven’t got the ability to satisfy everybody’s service expectations.
That’s what’s happening in the mortgage world currently.
Go with Nationwide - secure your rate for 90 days on a Decision in Principle - get your full application offered withing the 90 days - if rates continue to rise you keep the secured rate. if rates go down just leave the rate and go for the new cheaper option.
<p style="text-align: left;">Thanks for the replies.</p>
Sounds like the advisor didn’t do their job. You can get an offer in principle almost immediately.
Sounds like the advisor didn’t do their job. You can get an offer in principle almost immediately.
This.
But don't waste time whining at the adviser. I would advise you to get your skates on with another lender, apply online ASAP. Rates are only going in one direction right now.
A good advisor will hound the lender to get your application through in fact ours told us how long we would be waiting (within reason) for particular companies when we needed to rush a house purchase,, but that was when things were more stable.
I would advise you to get your skates on with another lender, apply online ASAP.
I would be careful doing that, you dont know how far the application has gone ie has it gone through credit checks etc? Doing your own application online will take quite some time. Yes they are all a bit clickbaity , as in get your application approved in minutes, but it then still takes weeks to submit paper work online etc, and they can pull the product up unitl the point you sign.
Unfortunately it is a really bad time to be moving house
This.
But don’t waste time whining at the adviser. I would advise you to get your skates on with another lender, apply online ASAP. Rates are only going in one direction right now.
Very much this^^ We recently re-mortgaged, the advisor from last time was prompt enough contacting us as the date approached, and then just offered the exact same deals our existing lender sent through a week later, so we did it for ourselves online with very little fuss. the advisor then got shitty on the phone with my missus several weeks later, for not allowing them to play middleman and earn their commission for doing the same mouse clicks on our behalf.
I would previously have said use a mortgage advisor, but they don't seem to be offering any significant benefit over and above being able to use google, and certainly weren't in a hurry to move the process forwards before the next interest hike/pull of products.
It's a bit of a panic at present for a lot of people, we ended up feeling fortunate because we will only be paying an extra £300 a month, we already know people who've had their payments jacked by £600+ a month. My sister can't re-mortgage until next November, that is several base rate hikes away.
My sympathies to the OP.
Agree with a lot of stuff said here. The market is crazy at the moment with lots of products being pulled or changed and it difficult for the brokers to keep on top of it all. So by all means ask for more communication about what's happening but don't get too shouty just yet until you are sure they are doing a crap job.
My understanding was they get a fixed commission per product not necessarily on the mortgage amount. So I don't see why they would de-prioritise you over others wanting to borrow more. If your mortgage is more affordable for you then higher chance of everything going through easily and quicker and the sooner they get their commission pay cheque?
My sister can’t re-mortgage until next November, that is several base rate hikes away.
You can always pay the early repayment fee and end the agreement early. Do the maths and compare repayment fee against a deal a a current rate. Worked better for me a few years back, early break clause required me to pay ~£2000 fee but new mortgage was £200 per month cheaper and I broke even after 10 months and remaining 14 months I was better off.
I'm trying to choose between:
10 year fixed at 5%
2 yr Tracker at 5.39% (base rate plus 0.39%)
3 yr fixed at 6.45%
10 year fixed is a kind of fit and forget and 5% isnt that bad historically if you ignore the super low interest rates of the last decade or so. The other 2 well I don't think the base rate will go up 1% in the next 2 years so tracker could be the way to go but you never know.
the current 10 year swap rate is 4.5%, so you're being charged 0.5% over the rate your bank borrows money at (and what the market thinks rates will be over that time). This is close to what you're being charged on the tracker. The 3 year fix is terrible value - 3 year swap rate is ~5.6% (it was 6.1 a few weeks ago) - so you should be paying around 6.1% for that.
Thanks. I think the fixed rates might come down if the BOE keeps interest rates the same. I think they have priced in a rise in the interest rates in Aug. An interest rate rise seems less likely than now than it did a few weeks ago imo.
We’re due to remortgage after a 5 yr fix in dec. Reading this with interest! No pun intended…
Get the fix mortgage because the inflation rate is not going down anytime soon.
If you are on tracker you will nr in for a hell of a ride because you will have difficulty planning how high it will go. 20%? Happened before in the 80s. As long as the fuel price keeps rising inflation will follow and interest will hike.
The rate will keep creeping up slowly regardless and even if Labour is in power they know there can only temporarily slow the rate down a bit just to keep their promise, but it will not last long and probably not even a year.
Like him or hate him, Trump will be able to fix it but again he is the "bad" guy and the rest of the politicians in the world are merely a flock of seagulls, pecking and swallowing smaller creatures as long as they are fed themselves. Scary time this.
Fuel prices are falling; Lloyds bank boss is forecasting intetest rate topping out at 5.5% and then declining - slowly but steadily.
As for trump fixing anything - you, chewkw, are deluded.
He couldn't fix a safety pin to hold up his incontinence pad.
Fuel prices are falling;
Yeah right. Until I see that at my petrol station it means nothing. My local BP petrol station has the price up again from 143p to now 147p for petrol.
Until it drops back to less than 140p, there is no chance in hell your mortgage rate will decrease. They might be able to temporarily "halt" or stabilise the price but they ain't going back to what it used to be.
As for trump fixing anything – you, chewkw, are deluded.
He couldn’t fix a safety pin to hold up his incontinence pad.
Well, at least we know Biden's admin is doing jack all (think that's their slang?). That evident is right in front of us to see.
And the link between fuel prices and mortgage rates is precisely what, chewkw?
In your world view, if petrol falls below 140p/litre that influences a fall in mortgage rates.
Utter bollocks - whether you're a faux malay or faux geordie
To me.. Inflation looks to be beginning to stablize so the 2 year tracker looks attractive.
But there's a lot of things at play here globally.
Lower crops due to climate change and Russia bombing the crap out of grain supplies I'm sure will be a factor in global economy in the next decade.
Trump? Not so much.
In your world view, if petrol falls below 140p/litre that influences a fall in mortgage rates.
Well, we just have to wait and see.
Utter bollocks – whether you’re a faux malay or faux geordie
LOL! whatever faux that is the inflation ain't going down for a while.
Lower crops due to climate change and Russia bombing the crap out of grain supplies I’m sure will be a factor in global economy in the next decade.
Don't forget all the carbon tax and "forcing" people to go electric/green just at this "right" time and there you go ... a perfect formula to add pressure to people
To me.. Inflation looks to be beginning to stablize so the 2 year tracker looks attractive.
That was my thinking when I just moved to a 3 year 5.64%. Being offered a deal for 10 years which sounds good now triggers my too good to be true senses as the lender will have done more research and has more knowledge and data on the subject than I do.
3.5 years ago I could have taken a 10yr for 1.5%. analysts don't know what's going to happen globally any more than we do
analysts don’t know what’s going to happen globally any more than we do
I think they do. There will be things like pandemics and wars which upset the models but those are not common.
If a 5% is being offered for 10 years there will be some element of logic behind that biased in their favour. Yes int condo go wrong fro them but more likely to go wrong for you.
If you are on tracker you will nr in for a hell of a ride because you will have difficulty planning how high it will go. 20%? Happened before in the 80s. As long as the fuel price keeps rising inflation will follow and interest will hike.
But YOUR man just Tweeted this morning that he's got inflation under control - is it you, him or both or you lying again?
If a 5% is being offered for 10 years there will be some element of logic behind that biased in their favour. Yes int condo go wrong fro them but more likely to go wrong for you
Why the hell would you take a 5% for 10 year deal that makes no logical sense. Not only in the long term is that a high rate, but the redemption costs on that will be massive so you will be stuck over paying for years.
As above when rates were low, taking 10 yrs at say even 2.5% would have been worth doing.
It does look like rates are stabilising, maybe in the next couple of years starting to decrease again.
Until it drops back to less than 140p, there is no chance in hell your mortgage rate will decrease. They might be able to temporarily “halt” or stabilise the price but they ain’t going back to what it used to be.
if petrol is 145p this year then 145p next year the rate of inflation is 0%, and (if that applied to all goods) you'd see the official rate of interest (and thus mortgage rates) drop to the floor.
We will see inflation drop significantly at some point as one-time event costs (price of gas due to not buying from russia any more) fall out of the 1 year cycle. There is some systemic inflation (pay rises etc) that will take a while to work their way out, so I suspect you'll see inflation at 4% or so by the end of the year, then dropping to 3% or so later. Interest rates will stay high until it drops below 2%, but if russia chose to abandon the war (and sanctions got removed), we'd see a significant drop
Why the hell would you take a 5% for 10 year deal that makes no logical sense. Not only in the long term is that a high rate, but the redemption costs on that will be massive so you will be stuck over paying for years.
Historically 5% is a decent rate. I think its fair to assume rates will get lower than 5% again but its not guaranteed.