Re-mortgage now or wait?
Discussion
Been a late one but need to call the broker tomorrow to see what rates he can locked in. I think given the risk to housing market and the change of more and more rate rises fixing now will be slightly more expensive in the short term but will save money going forward. Although fixing 3-4%, can people see the rates going higher than that?
when going through a re-mortgage, how does the lender calculate the value of the house? Zoopla figures seem to be in our favour but if the lender thinks its less then of course go to adjust my calculations.
Also how the hell can I have paid over £60k and only have the amount drop by £30k? The amount of money these banks make is sickening. Agree with other posts banks withdrawing rates is them making money vs making even more money when they put the rates up with the new products.
Also how the hell can I have paid over £60k and only have the amount drop by £30k? The amount of money these banks make is sickening. Agree with other posts banks withdrawing rates is them making money vs making even more money when they put the rates up with the new products.
Edited by bobski1 on Tuesday 27th September 20:53
bobski1 said:
when going through a re-mortgage, how does the lender calculate the value of the house? Zoopla figures seem to be in our favour but if the lender thinks its less then of course go to adjust my calculations.
Also how the hell can I have paid over £60k and only have the amount drop by £30k? The amount of money these banks make is sickening. Agree with other posts banks withdrawing rates is them making money vs making even more money when they put the rates up with the new products.
Lenders will often send round someone to value your house. That’s what HSBC generally do.Also how the hell can I have paid over £60k and only have the amount drop by £30k? The amount of money these banks make is sickening. Agree with other posts banks withdrawing rates is them making money vs making even more money when they put the rates up with the new products.
Edited by bobski1 on Tuesday 27th September 20:53
Seventyseven7 said:
gotoPzero said:
bobski1 said:
Although fixing 3-4%, can people see the rates going higher than that?
Yes from me. Base rates alone will probably hit mid 4's. Maybe higher.I can see high street rates of 7% next year. Easily.
So on that basis I think 4.25 or 4.5 for a couple of years. Then maybe into the 3s for 2025.
bobski1 said:
Also how the hell can I have paid over £60k and only have the amount drop by £30k? The amount of money these banks make is sickening. Agree with other posts banks withdrawing rates is them making money vs making even more money when they put the rates up with the new products.
Why do you pay more interest in the beginning of a mortgage?Edited by bobski1 on Tuesday 27th September 20:53
In the beginning, you owe more interest, because your loan balance is still high. So most of your monthly payment goes to pay the interest, and a little bit goes to paying off the principal. Over time, as you pay down the principal, you owe less interest each month, because your loan balance is lower
Do some serious number crunching. We had a rate of 1.14% for 2 years which was a joy. Managed to lock in 5 years at 3.29% a month ago. Thank god.
My mate said the models at the bank he works at are all showing 99% chance rates will go up 1% minimum next time.
Another guy I know is contemplating paying nearly £20k in fees as his current deal ends June next year or rolling a dice and hoping rates come down by end of 2024. Otherwise he’s screwed. Will be going from £1500 a month to £3200 a month if rates go to 5%. Unsustainable for many.
My mate said the models at the bank he works at are all showing 99% chance rates will go up 1% minimum next time.
Another guy I know is contemplating paying nearly £20k in fees as his current deal ends June next year or rolling a dice and hoping rates come down by end of 2024. Otherwise he’s screwed. Will be going from £1500 a month to £3200 a month if rates go to 5%. Unsustainable for many.
My current fixed deal ends Sep 24 and is at 2.19% at the moment
I’m holding tight until then hoping that we will have passed the peak and be on the way down
Clearly this may not happen but paying a large ERC and upping the payments by a huge chunk right now seems like it may not pay off for me
Also gives me two years to get even tighter on the overall household budget in order to make that rise less impactful
I’m holding tight until then hoping that we will have passed the peak and be on the way down
Clearly this may not happen but paying a large ERC and upping the payments by a huge chunk right now seems like it may not pay off for me
Also gives me two years to get even tighter on the overall household budget in order to make that rise less impactful
The more I think about it, the more this is making me want to sell up and cash In (if anyones even buying), and move in to rented accommodation nearer to work for a while until or if the market crashes and then buy something bigger for cheap.
We're a bit gutted, we had hoped to move to a bigger home early next year as we want to start a family and our current home is very small and doesn't have a bath, just a shower and tiny 'bathroom' which isn't ideal. Obviously no one knows what might happen but it's not looking good.
We're a bit gutted, we had hoped to move to a bigger home early next year as we want to start a family and our current home is very small and doesn't have a bath, just a shower and tiny 'bathroom' which isn't ideal. Obviously no one knows what might happen but it's not looking good.
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