Re-mortgage now or wait?
Discussion
DonkeyApple said:
The market has gone from hoping the top is known and that we'll come down from it in the next year to thinking there might be more but also we'll stay here for longer.
I think that was inevitable. 4-5.x % mortgage rates are the new (old) norm. Edited by anonymous-user on Wednesday 3rd May 17:43
remedy said:
Just got my approval through with Halifax for 3.79 on a 5 year fix. Happy with that! Especially if rates are looking jittery. I guess that is in light of the US looking to increment rates up again?
My offer letter came through for this product this morning too. Only problem is the house has been downvalued (based on their own online valuation). I need to decide now if I pay in a chunk to keep the 3.79% rate for a 60% LTV or go to a 4.06% rate for the next LTV bracket. (Annoyingly with the lower valuation our outstanding balance puts it at 61.4% !)
Nemophilist said:
remedy said:
Just got my approval through with Halifax for 3.79 on a 5 year fix. Happy with that! Especially if rates are looking jittery. I guess that is in light of the US looking to increment rates up again?
My offer letter came through for this product this morning too. Only problem is the house has been downvalued (based on their own online valuation). I need to decide now if I pay in a chunk to keep the 3.79% rate for a 60% LTV or go to a 4.06% rate for the next LTV bracket. (Annoyingly with the lower valuation our outstanding balance puts it at 61.4% !)
If your value is the on line automated valuation you can often pay £100 and have a full attended inspection but if the value comes up lower again then it ratchets down to the lower amount.
Caddyshack said:
Nemophilist said:
remedy said:
Just got my approval through with Halifax for 3.79 on a 5 year fix. Happy with that! Especially if rates are looking jittery. I guess that is in light of the US looking to increment rates up again?
My offer letter came through for this product this morning too. Only problem is the house has been downvalued (based on their own online valuation). I need to decide now if I pay in a chunk to keep the 3.79% rate for a 60% LTV or go to a 4.06% rate for the next LTV bracket. (Annoyingly with the lower valuation our outstanding balance puts it at 61.4% !)
If your value is the on line automated valuation you can often pay £100 and have a full attended inspection but if the value comes up lower again then it ratchets down to the lower amount.
ETA - I suppose the other way to look at it is that its not money wasted if its going on paying down the mortgage, its just moving from one account into another. Only problem is the savings account is paying more in interest than the mortgage rate and reduces the amount left in my rainy day fund.
Edited by Nemophilist on Tuesday 9th May 15:43
Nemophilist said:
Caddyshack said:
Nemophilist said:
remedy said:
Just got my approval through with Halifax for 3.79 on a 5 year fix. Happy with that! Especially if rates are looking jittery. I guess that is in light of the US looking to increment rates up again?
My offer letter came through for this product this morning too. Only problem is the house has been downvalued (based on their own online valuation). I need to decide now if I pay in a chunk to keep the 3.79% rate for a 60% LTV or go to a 4.06% rate for the next LTV bracket. (Annoyingly with the lower valuation our outstanding balance puts it at 61.4% !)
If your value is the on line automated valuation you can often pay £100 and have a full attended inspection but if the value comes up lower again then it ratchets down to the lower amount.
ETA - I suppose the other way to look at it is that its not money wasted if its going on paying down the mortgage, its just moving from one account into another. Only problem is the savings account is paying more in interest than the mortgage rate and reduces the amount left in my rainy day fund.
Edited by Nemophilist on Tuesday 9th May 15:43
Nemophilist said:
I had pretty much made my mind up on a 5 year fix, but mortgage adviser is recommending 2 years.
From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
Can you afford to gamble on the markets going haywire after/during a general election campaign with another black swan event?From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
I locked into a 10 year fix about 9 years ago, we could afford the payments on a single salary (for safety and I was made redundant twice in that time) and as luck would have it took ample opportunity to use the bank account side of things. It is really your appetite for risk. I see a stack of negative in US banks going knock one after another as is the likelihood of fractional banking with the market running scared, does that contagion come over here? Who knows.
I agree. It's very much down to personal risk and then things like the rate differential, the size of the loan and accounting for the possible extra rollover fees of a 2 yr v 5.
We're now entering the 12th month of inflation so I would expect to see the rolling 12th month figure start to fall now but we still don't have clarity as to where in the market we will see rate rises starting to act on consumer habits. Then we have an election and on top of that we have no idea for how long Germany et al will remain having to bid up North Sea gas prices trying to fill the energy void left by them goading the Russian nutbag into cutting them off.
Even if we are actually reaching the peak on rates we don't know how long we will remain at this level and I'm not sure anyone thinks that any drop back would be significant. I think the general assumption is that give or take a few basis points this is where we now are.
We're now entering the 12th month of inflation so I would expect to see the rolling 12th month figure start to fall now but we still don't have clarity as to where in the market we will see rate rises starting to act on consumer habits. Then we have an election and on top of that we have no idea for how long Germany et al will remain having to bid up North Sea gas prices trying to fill the energy void left by them goading the Russian nutbag into cutting them off.
Even if we are actually reaching the peak on rates we don't know how long we will remain at this level and I'm not sure anyone thinks that any drop back would be significant. I think the general assumption is that give or take a few basis points this is where we now are.
thepeoplespal said:
Nemophilist said:
I had pretty much made my mind up on a 5 year fix, but mortgage adviser is recommending 2 years.
From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
Can you afford to gamble on the markets going haywire after/during a general election campaign with another black swan event?From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
I locked into a 10 year fix about 9 years ago, we could afford the payments on a single salary (for safety and I was made redundant twice in that time) and as luck would have it took ample opportunity to use the bank account side of things. It is really your appetite for risk. I see a stack of negative in US banks going knock one after another as is the likelihood of fractional banking with the market running scared, does that contagion come over here? Who knows.
Sarnie said:
Nemophilist said:
I had pretty much made my mind up on a 5 year fix, but mortgage adviser is recommending 2 years.
From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
Thats a very brave advisor.........From reading back on here over the past few pages, it appears most people are taking 5 years.
Am I mistaken?
DonkeyApple said:
Why wait 5 years for the next chance to get some fees when you can settle on 2? 
Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
I think you would be shocked at how few brokers are actually like that. In 25 yrs I have met very few.Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
The compliance is very strict and they look for trends - it shows up as a red flag if an advisor does lots of anything in a pattern and the FCA are very hot on 2 yr repetition.
Caddyshack said:
DonkeyApple said:
Why wait 5 years for the next chance to get some fees when you can settle on 2?
Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
I think you would be shocked at how few brokers are actually like that. In 25 yrs I have met very few.Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
The compliance is very strict and they look for trends - it shows up as a red flag if an advisor does lots of anything in a pattern and the FCA are very hot on 2 yr repetition.
There will be more on the fiddle that you would like to believe. There always is in the retail space, hence why there is so much focus on regulating them and all the new regulatory additions over the last decade to try and reign in the worst but we all know that within our own little segments there are still operators both corporate and individual who just can't resist the quick Buck.
DonkeyApple said:
Why wait 5 years for the next chance to get some fees when you can settle on 2?
Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
These are usually the ones that come and go.Not every 'advisor' in any FCA field is kosher. I'm sure the opportunity to bring forward the next few opportunity weighs heavier on some than others.
But, there can be plenty of reasons to advise a client to take a two year rate, where they are stating they'd prefer a five year rate. They could have told you they may move home in a few years or come into funds that could pay the mortgage off.
As an advisor, you collect all the information, provide the client with that they think they want along with an alternative product that you may think is better for them, along with an explanation why and then you allow them then to allow them to make an informed decision. If they go with their own preference then you just document the conversation and that you advised otherwise but they wanted to go with XYZ. It also helps when a client isn't happy in two years time when they want to pay their mortgage off after coming into an inheritence and aren't happy with the ERC's they are being charged to redeem the mortgage, the audit trail of advice is there.
Anyone purely advising a client to take a shorter rate just to be able to earn commission sooner isn't going to last long, the compliance is far too rigid for that pattern to not become pretty obvious, pretty quickly......
Agreed. Yet, I'd wager the percentages don't differ at all from other retail facing activities such as IFAs and stock brokers. If our industries were naturally kosher they would need a regulator and as you observe, the FCA has had to become quite hands on with these industries over the last decade.
Consumers should never rush to blindly trust an FCA regulated advisor of any financial product just because they are FCA regulated. Instead, it's wiser to not forget why that regulator needs to exist in the first instance.
Consumers should never rush to blindly trust an FCA regulated advisor of any financial product just because they are FCA regulated. Instead, it's wiser to not forget why that regulator needs to exist in the first instance.
The_Doc said:
Crystal ball....
Are Halifax going to withdraw my remortgage product commencing on 1st June (at 4.08% 5yr fix or very similar)?
We are nearly at the redemption statement stage from the previous lender......
No they won't. It would be VERY rare to see an offer pulled. If you have an offer then you have the deal and they sold the money based on money reserved and sold at that time. Are Halifax going to withdraw my remortgage product commencing on 1st June (at 4.08% 5yr fix or very similar)?
We are nearly at the redemption statement stage from the previous lender......
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