Supine
Newt Member
Sounds risky to me
Time to remortgage - long or short term fixed?
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Sounds risky to me
platinumsage
HaveMyPassword123
I switched to a five year fix at 1.09% last October. Was lucky with the timing but if I’d had two years left at that point with a couple grand ERC to pay, I totally would have paid it to get a five year deal which was obviously not going to be offered again for years.
marty21
One on one? You're crazy.
that is a sweet deal !
I'm very lucky as we paid off our mortgage last year, so benefitted from very low interest rates over the 25 years we had it - apart from the initial 2 year fixed deal - can't remember the interest rate , we just went variable for the next 20 years or so.
Supine
Newt Member
King Biscuit Time
Well-Known Member
Sorry, I should have specified - I'm only re-fixing the half thats running out next year at 2.25%
I have reserved the deal for 4 months now so I do have a bit of time to see how things pan out but I would very much doubt there will be anything around under 4% by Xmas.
Fez909
toilet expert
We're in a bit of a situation, and this thread is timely, so anyone have any advice here:
Girlfriend owns the house we're in, and we were considering buying somewhere together, so when her last deal expired she moved on a tracker with no ERC to give flexibility for the impending move. We've decided to hold off on the move until next year given the uncertainty about, but now her mortage is rising quite quickly with the base rate tracking.
She could fix at not much more than her current rate, but then we'd be hit with ERC if we do move next year.
I suggested (at the time, and now) that she moves to a fixed deal with no ERC. That means a higher rate still, but hopefully only for a short time until we move.
Is this our best option?
Girlfriend owns the house we're in, and we were considering buying somewhere together, so when her last deal expired she moved on a tracker with no ERC to give flexibility for the impending move. We've decided to hold off on the move until next year given the uncertainty about, but now her mortage is rising quite quickly with the base rate tracking.
She could fix at not much more than her current rate, but then we'd be hit with ERC if we do move next year.
I suggested (at the time, and now) that she moves to a fixed deal with no ERC. That means a higher rate still, but hopefully only for a short time until we move.
Is this our best option?
Not an expert but that's what I'd do. Even if mortgage rates don't go crazy and you end up paying a bit more than necessary, better that than things going crazy and ending up totally screwed.
According to this, looks like it could get pretty bad. 
'With the financial markets signalling that the Bank might need to raise interest rates as high as 6%, Santander, HSBC and Nationwide were among the big lenders indicating that the end of cheap mortgages was coming to an end.
Roughly one in 10 deals have disappeared this week according to the online mortgage platform Dashly. On Monday there were 7,490 residential and buy-to-let mortgage products available but by Tuesday evening there were 6,609, a drop of nearly 12%.'
www.theguardian.com
'With the financial markets signalling that the Bank might need to raise interest rates as high as 6%, Santander, HSBC and Nationwide were among the big lenders indicating that the end of cheap mortgages was coming to an end.
Roughly one in 10 deals have disappeared this week according to the online mortgage platform Dashly. On Monday there were 7,490 residential and buy-to-let mortgage products available but by Tuesday evening there were 6,609, a drop of nearly 12%.'
Homeowners warned of ‘significant’ rise in UK interest rates
Bank of England’s chief economist speaks out after mini-budget, with financial markets expecting rates to reach up to 6%
Hollis
bloody furious
You could try fixing in a mortgage which is portable when you do move - which lots of them are. That way you get the fixed rate for 3,5,10 years.
I remotgaged last year and got a 5-year fixed rate deal through L&C | The UK's Largest Fee-Free Mortgage Broker and Advisor Despite my general scepticism around financial advisers/brokers they found us a deal i wouldn't have got myself, and I changed my mind several times on what I wanted to do , so I'd recommend them.
Just ring them up, tell the adviser what you want to do, and they should say if its possible or not. It could be that you remotgage on the existing flat in your joint names so you can get a higher mortgage based on joint income.
bellaozzydog
rolling turds in glitter
Unfortunately today isn’t last year. The boats going down, the horse has bolted.
Hollis
bloody furious
I don't think that alters what they're trying to achieve in the current circumstances, albeit they ain't gonna get the rate I managed to get last year.
Fez909
toilet expert
Thanks for the responses.
I'm not sure how portable mortgages work, but wouldn't it complicate things as then we'd need a second mortgage to make up the difference for the new house? Two people on one mortgage, one on the other?
Also, if I was to go on her mortgage, I'd be liable for this house debt without owning it. I'm not sure that's wise, even though we have no plans of splitting up anytime soon(!)
Fez909
toilet expert
OK, just got a response from a broker on this. He thinks that we can take a fixed now. And when the time comes to move, port the mortgage, add me to the new one and increase the borrowing to cover the new house.
He's checking with the morgage lender now, but seems the easiest options by far if we can do this.
Supine
Newt Member
Could someone bust this paywall please? It’s about a potential housing market crash.
www.ft.com
Jump in mortgage rates threatens UK property price crash
Market turmoil leaves more than 2mn homeowners facing sharp rise in borrowing costs over next two years
kalmatthew
Lurker Extrodinaire
12ft | that should do itCould someone bust this paywall please? It’s about a potential housing market crash.
Jump in mortgage rates threatens UK property price crash
Market turmoil leaves more than 2mn homeowners facing sharp rise in borrowing costs over next two years
hash tag
Books, not bombs
Sorry.
BBC News - Mortgage rates rise sharply as squeeze tightens
BBC News - Mortgage rates rise sharply as squeeze tightens
Mortgage rates rise sharply as squeeze tightens
The average two-year fixed rate is now close to 6% as major lenders raise the cost of deals sharply.
www.bbc.co.uk
kenny g
Sheeple Awake!
Thank fuck for this thread! Finally the frog in rapidly heating water that is my usual financial decision making jumped and I applied for a fix on Monday night last week. Crazily worrisome but now accepted. God knows what is going to happen over the next few years to rates.
beesonthewhatnow
going deaf for a living
£350 a month more? Christ
I have a year to go on a fixed rate and I’m basically shitting myself at what’s going to happen.
We've been on a variable for years. Personal circumstances changed and we couldn't fix it until a few months ago but a mortgage advisor/friend told us to stay on a variable as it was cheaper at the time and the bank wouldn't risk putting up rates with such a feeble economy. Then Truss happened! We're paying nearly £500 more a month now. I think there are about 2 million of us in the same boat with a further 3/4 of a million also coming off their fixed mortgage this year. I'm sick of the bank repeatedly increasing rates to cut inflation when none of this inflation is down to consumers spending on luxuries.
bellaozzydog
rolling turds in glitter
My mortgage has doubled in six months
moonsi til
worked it out now!
I went up £150 a month. First payment was Feb 1st. I have a debt on an interest free credit card that I’m paying off that I have reduced payment on & have cut back more & more mindful where I can save. I also work extra shifts so will be working tomorrow & another weekend day in Feb.
hash tag
Books, not bombs
Crikey. How the hell. That's dreadful
hash tag
Books, not bombs
You could well be right.
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