Re-mortgage now or wait?
Discussion
trashbat said:
FS.
They're still advertising them to existing customers like me in their switch tool, but it may be outdated info - wouldn't be the first time.
https://www.platform.co.uk/mortgage-intermediaries/products/residential-mortgages/indexThey're still advertising them to existing customers like me in their switch tool, but it may be outdated info - wouldn't be the first time.
If the system allows you to secure a PT rate with them still, then you may want to do it ASAP, it's highly unlikely that when they reinstate the range that the rates will be lower........
Sarnie said:
https://www.platform.co.uk/mortgage-intermediaries...
If the system allows you to secure a PT rate with them still, then you may want to do it ASAP, it's highly unlikely that when they reinstate the range that the rates will be lower........
Ta. Submitted a product switch request for a five year fix at 3.71% and a £1249 fee, but it's not an offer and certainly not binding at this stage. We'll see...If the system allows you to secure a PT rate with them still, then you may want to do it ASAP, it's highly unlikely that when they reinstate the range that the rates will be lower........
Switch rates are viewable at https://www.platform.co.uk/mortgages/existing-mort... - I think they are/were a little better than their advertised new business ones, but then MoneySupermarket brokers were offering their switch rates the other week.
I must say I found it a bit odd that they suddenly moved to offer the best rates in country, because they haven't been all that competitive recently.
trashbat said:
I must say I found it a bit odd that they suddenly moved to offer the best rates in country, because they haven't been all that competitive recently.
This is what some lenders do. They get a tranche of money they want to lend, so they slash rates.They then get completely overwhelmed and have to pull their entire product range to try to manage their service levels.
A few of our clients missed out on Platform rates as they considered their options last week, which is their prerogative of course, but in the current environment, you do need to act quickly to secure a rate because anything available today, could be gone tomorrow......
RenesisEvo said:
Thanks for sharing! What's behind the increase, predicted base rate movement or something else?
I wish I could take action at this point but I'm locked in with an ERC that kills most deals but probably prevented any knee-jerk reaction to the madness last year. I've still some time left before my current fix ends (near Christmas) so from the summer onwards I'll be taking a much closer look at where things might be headed. I'm hoping there's another nadir between now and the end of the year but who knows.
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.I wish I could take action at this point but I'm locked in with an ERC that kills most deals but probably prevented any knee-jerk reaction to the madness last year. I've still some time left before my current fix ends (near Christmas) so from the summer onwards I'll be taking a much closer look at where things might be headed. I'm hoping there's another nadir between now and the end of the year but who knows.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
mjb1 said:
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
How do you expect any broker to have forseen the events that have happened? Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
journeymanpro said:
mjb1 said:
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
How do you expect any broker to have forseen the events that have happened? Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
7 years ago was slap bang in the middle of Brexit mania. The most economically uncertain time since the GFC for the U.K. Big currency risk was already being priced in, huge concerns that the financial services industry that underpinned the whole economy was going to get hammered etc. It seems extremely unlikely a market professional would have been pitching short term deals rather than looking to lock in for as long as possible to mitigate risk.
The dates in the OP may be wrong or maybe lots of key information as to personal circumstances is missing but taking the above information at face value would give reason to question the ability of the market professional, someone at the absolute cutting edge of consumer debt vending, giving professional guidance on the largest financial transactions that most people ever make and in the midst of two huge economic periods, Brexit and the start of rising rates.
There must be some info missing?
mjb1 said:
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
Any info from a broker, is advice based on their own experience and opinion of the market.Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
But it's not a command. You are free to do what you like. If you wanted to do something different then you could have.
Rates were on the up from late 2021, all the way through 2022 but not many people could have foreseen the Truss/Kwasi fall out.......
In 20 years I've never seen 5 year fixed rates lower than 2 year rates, and if I'd been asked if that would ever happen, I would have previously said that it's extremely unlikely as I'd never seen it happen, but it did.....
I can't speak for all brokers but I try and give clients advice based on what I would do in their specific situations.......maybe other brokers give advice based on what may suit them better commercially? Disappointing if thats the case......
It is tricky knowing what to do currently.
Our 5-year 1.8 fix ends in June, so I have been locking in rates over the last couple of months to try and keep as competitive as possible as the rates dropped.
Staying with HSBC and having a relatively small amount left, I didn't want any additional product charges - Jan, I started with an agreed 4.44, then down to 4.24, then 4.14 and finally 3.99 yesterday (all 5-year no-fee fixes).
So much uncertainty, but it feels like that may be as good as I can get for now.
Our 5-year 1.8 fix ends in June, so I have been locking in rates over the last couple of months to try and keep as competitive as possible as the rates dropped.
Staying with HSBC and having a relatively small amount left, I didn't want any additional product charges - Jan, I started with an agreed 4.44, then down to 4.24, then 4.14 and finally 3.99 yesterday (all 5-year no-fee fixes).
So much uncertainty, but it feels like that may be as good as I can get for now.
Sarnie said:
mjb1 said:
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
Any info from a broker, is advice based on their own experience and opinion of the market.Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
But it's not a command. You are free to do what you like. If you wanted to do something different then you could have.
Rates were on the up from late 2021, all the way through 2022 but not many people could have foreseen the Truss/Kwasi fall out.......
In 20 years I've never seen 5 year fixed rates lower than 2 year rates, and if I'd been asked if that would ever happen, I would have previously said that it's extremely unlikely as I'd never seen it happen, but it did.....
I can't speak for all brokers but I try and give clients advice based on what I would do in their specific situations.......maybe other brokers give advice based on what may suit them better commercially? Disappointing if thats the case......
I doubt the broker was doing it for commercial reasons as they would have taken the biz and allowed the client to pay the penalty - the advice they gave resulted in no business for them. I know some brokers were actively marketing advocating a penalty and swap which seems risky to me.
Often we have to talk the client out of silly ideas and paying £20k+ penalties on a what if did seem a bit dim but may have worked out better for some people - hindsight is a wonderful thing.
The_Doc said:
What do you do in the situation of equal ish deals for a customer - 2yr fix and 5yr fix,
But you know that each product nets you £1k commision
Over a 3yr cycle for the customer base, Plan A makes 200% the profit for the firm.
You ask the client what they want.But you know that each product nets you £1k commision
Over a 3yr cycle for the customer base, Plan A makes 200% the profit for the firm.
Yes, an extra remortgage event earns you more but after doing this for 25 years I earn decent money without worrying about tricks and I like to believe that the honesty shines through. People tend to pick up on what motivates you. We do not advertise, we do not have introducers such as Estate Agents or Accountants. We only get new clients through recommendations.
The_Doc said:
What do you do in the situation of equal ish deals for a customer - 2yr fix and 5yr fix,
But you know that each product nets you £1k commision
Over a 3yr cycle for the customer base, Plan A makes 200% the profit for the firm.
As per my post, I advise them to do whatever it is I would do in their scenario.But you know that each product nets you £1k commision
Over a 3yr cycle for the customer base, Plan A makes 200% the profit for the firm.
Being short sighted and advising based on increased earning potential just ensures that eventually the clients sees through your "advice" and you lose them anyway, that stream of business ends, they don't refer you to their friends, family or work colleagues etc etc.
Also, the split between the rates you provide to clients is heavily monitored and is a current hot topic for the FCA to ensure correct advice is given. Rates have been so low over recent years and the potential for rates to go up at some point has always been there, so anyone heavily advising clients to go on two year rates (because they want to earn off the back of another remortgage in two years time) were always walking a tightrope.
These are our rate splits over the last 6 months from a recent compliance audit;
72% of all mortgage provided have been on 5 year fixed rates. As I said, I try to ensure that our advice is always best advice, in my opinion, if you start advising based on earning commission again a client sooner, you'll soon find yourself either under the microscope of the FCA or with a lot of unhappy clients, or both.......
The_Doc said:
How much of a cut of the £1k does an Estate Agent introducer take?
Thanks for the impromptu AMA.
No idea, we've never needed to have an introducer arrangement, as Caddyshack posted about his business, all our business comes from repeat clients and referrals.Thanks for the impromptu AMA.
Edited by Sarnie on Tuesday 28th February 18:43
That's really good to hear.
I have been with my IFA for 21 yrs and he now employs a mortgage broker and a fund manager/picker in-house.
I recommend his firm to all my medic friends who ask me for advice. I'm on my third mortgage with him and they have all been good products in the mid term. His firm doesn't advertise, and is busy and popular.
Its nice to hear there are Sarnies and Caddyshacks still out there, building client lists and reputation on success.
I have been with my IFA for 21 yrs and he now employs a mortgage broker and a fund manager/picker in-house.
I recommend his firm to all my medic friends who ask me for advice. I'm on my third mortgage with him and they have all been good products in the mid term. His firm doesn't advertise, and is busy and popular.
Its nice to hear there are Sarnies and Caddyshacks still out there, building client lists and reputation on success.
DonkeyApple said:
journeymanpro said:
mjb1 said:
I'm in a similar position - current fix with NatWest (2.5%) finishing about the end of this year. After rates shot up last autumn I decided to sit tight, and the way they've been sliding recently I'm happy I did. What's likely to be on offer in 9 months time seems to be anyone's guess.
Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
How do you expect any broker to have forseen the events that have happened? Slightly frustrating thing is that I talked to my broker in March last year about paying the ERC (2% at the time) to lock in a new 5 year fix at the same sort of rate. His advice was not to bother, that rates can't possibly go up far from where they currently are. Should've gone with my own initiative instead of taking the expert's advice.
It was the same thing when I initially took out the mortgage (7 years ago) - I was interested in a 5 year fix then, but broker advised me to go for 2 yrs (slightly better rate, but worse off considering the £1k fee each time. Then when my 2 year fix was up, best product transfer rate on offer was 2.5% (in 2018). If I'd taken the 5 year fix that I wanted to, I'd have been refixing in 2021, when Natwest was offering sub 1% on a 5 year fix.
Can't decide whether next time to do the opposite of what the broker advises, or see a different broker!
7 years ago was slap bang in the middle of Brexit mania. The most economically uncertain time since the GFC for the U.K. Big currency risk was already being priced in, huge concerns that the financial services industry that underpinned the whole economy was going to get hammered etc. It seems extremely unlikely a market professional would have been pitching short term deals rather than looking to lock in for as long as possible to mitigate risk.
The dates in the OP may be wrong or maybe lots of key information as to personal circumstances is missing but taking the above information at face value would give reason to question the ability of the market professional, someone at the absolute cutting edge of consumer debt vending, giving professional guidance on the largest financial transactions that most people ever make and in the midst of two huge economic periods, Brexit and the start of rising rates.
There must be some info missing?
The broker replied that he didn't see rates going up any further, they just couldn't because borrowers wouldn't be able to afford the repayments! He 100% said that to me! And overall advice was to stick.
Back in 2016 when I first took out the mortgage, I was offered 2 yr fix at 1.38% or 5 yr fix at about 1.9%. I was leaning towards the 5 year (my thinking was that rates, particularly base rate, couldn't really go any lower, they could go up from there). But broker steered me towards 2 yr, citing the lower rate, and him feeling confident that rates wouldn't rise in the next two years. He didn't seem to have factored in the extra 1k product fees incurred by taking shorter fixes repeatedly. I was a bit naïve and didn't pick up on that properly myself. Later when I came to refix I did ask him about the extra product fees over taking a fee free, but higher rate deal, and he admitted that he hadn't ran the figures to see which would be best in my circumstances.
Looking back I think he was probably more favourable towards the shorter fixes because he pockets an extra £250 each time. He was very eager to contact me when the initial fix was coming to an end to ask that I did a product transfer/refix through him rather than going direct through my lender "it won't cost you anything different, but I'll earn a small commission". Fair enough, but I do feel that he was eyeing the extra commission over my stated preferences when he recommended the 2yr fix.
Maybe I put too much faith in the experts - if my boiler tech tells me my boiler could do with replacing, I'll likely get that done. If my main dealer mechanic says my car could do with new brake pads, I'll instruct them to do it. I wouldn't tend to argue the toss with them, even if we both suspect they've got another 5-10k left. Likewise if a mortgage broker suggests one product/deal over another, I put my faith in their judgement rather than tell them I disagree and ask for something else.
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