Re-mortgage now or wait?

Re-mortgage now or wait?

Author
Discussion

bobski1

Original Poster:

1,763 posts

103 months

Friday 3rd March 2023
quotequote all
getting back on track, I decided not to renew in the chaos and wait it out. Currently being offered a fix 3.98% for 5yrs. Wondering where that sits in the ball park of other people/deals people have been seeing?

The fix for 2yrs was more expensive as was the 2yr tracker. The 5yr makes sense only if the rates level, if the base rate drops slightly, which the broker was hinting at, it could be more expensive but less risk given how quickly events unfolded last year.

TopTrump

3,218 posts

173 months

Friday 3rd March 2023
quotequote all
bobski1 said:
getting back on track, I decided not to renew in the chaos and wait it out. Currently being offered a fix 3.98% for 5yrs. Wondering where that sits in the ball park of other people/deals people have been seeing?

The fix for 2yrs was more expensive as was the 2yr tracker. The 5yr makes sense only if the rates level, if the base rate drops slightly, which the broker was hinting at, it could be more expensive but less risk given how quickly events unfolded last year.
I'm in the exact same situation. Best rate is 7yr fixed at 3.99% but not sure I'd want to fix for that long. Watching here with interest (or hopefully minimizing interest biggrin)

Lifeisalemon

231 posts

174 months

Friday 3rd March 2023
quotequote all
I am (reasonably) glad I grabbed the 3.99% 5-year no-fee fix from HSBC - now gone up to 4.11% following the recent drops. I will see how this looks again nearer to June.

Pixelpeep Electric

8,600 posts

141 months

Friday 3rd March 2023
quotequote all
bobski1 said:
getting back on track, I decided not to renew in the chaos and wait it out. Currently being offered a fix 3.98% for 5yrs. Wondering where that sits in the ball park of other people/deals people have been seeing?

The fix for 2yrs was more expensive as was the 2yr tracker. The 5yr makes sense only if the rates level, if the base rate drops slightly, which the broker was hinting at, it could be more expensive but less risk given how quickly events unfolded last year.
we got a 3 year fixed at 4.11% with HSBC - that was the Saturday 25th Feb. I couldn't face a 5+ year agreement with the way it all is now... seems general understanding is it will 'settle' at 2.5-3% in a year or two.. but that is based on nothing else other than opinion from the brokers i'm dealing with.

trashbat

6,005 posts

152 months

Monday 6th March 2023
quotequote all
Well, Platform came through with their [3.71% / 5 year fix / £1249 fee] product switch offer, received today, so that's good. There was some ambiguity about when the start date is - like, if it's before the current fix ends, that would incur ERCs - but a quick call and they tell me they handle that.

Tagteam

285 posts

22 months

Thursday 9th March 2023
quotequote all
HSBC now offering a five year fix below four percent , dropped from 4.11(?)

Sarnie

8,025 posts

208 months

Thursday 9th March 2023
quotequote all
Tagteam said:
HSBC now offering a five year fix below four percent , dropped from 4.11(?)
Thats been the case for a few months......the 4.11% rate was a 3 year fixed, as mentioned a few posts above.

The_Doc

4,855 posts

219 months

Thursday 23rd March 2023
quotequote all
Question.

Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?

I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.

Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.

Wilmslowboy

4,188 posts

205 months

Thursday 23rd March 2023
quotequote all

I bit the bullet, went 2 year fixed with existing lender (end of last week), just a few clicks and done - 4.3%
I can stop fretting about it now for a while....next month will see a £500+ step up in payments :-(




Frimley111R

15,533 posts

233 months

Thursday 23rd March 2023
quotequote all
Wilmslowboy said:
..next month will see a £500+ step up in payments :-(
Yep, I think a lot of people have seen that kind of bump.

croyde

22,698 posts

229 months

Thursday 23rd March 2023
quotequote all
Every 0.25 rise in the interest rate is another £50 a month to us.

Been a lot of those since the beginning of 2022.

IO tracker 1.0% above BoE. Gone from £200 a month to now nearly £1000.

It's in an offset account and luckily there is some inheritance money in there keeping the payments manageable......just.

Pixelpeep Electric

8,600 posts

141 months

Thursday 23rd March 2023
quotequote all
We got a bit extra out and paid off our home improvement loan which was costing us £198 a month with some lively interest.

So we are 'net' only paying £150 extra a month now than when we was at 1.4% (actually is £350)

hopefully 3 years time it'll all be calm again!

Sarnie

8,025 posts

208 months

Thursday 23rd March 2023
quotequote all
The_Doc said:
Question.

Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?

I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.

Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.
Any lender can withdraw or cancel any offer they've made, at anytime, if they see fit.

It's only an "Offer" from them........it's nothing legally binding.........you are free to take it up and decline it, and so are they......

The_Doc

4,855 posts

219 months

Thursday 23rd March 2023
quotequote all
hmm I thought so, until the monies are transferred and the contractual obligations start.

Are lenders pulling rates in response to the base rate rise today?
Have you seen an effect in fixed rates?

Sarnie

8,025 posts

208 months

Thursday 23rd March 2023
quotequote all
The_Doc said:
Are lenders pulling rates in response to the base rate rise today?
Have you seen an effect in fixed rates?
It's too soon but it will come in the coming days.......

We had this from a lender today;

"I wanted to make you aware that our current rates are unlikely to be around for long, this is because of the freshly released inflation numbers and the spike in swap rates yesterday (+30bps) and we haven’t even got to the BOE base rate announcement yet.
These products are proving very popular so unfortunately once they are gone, they are gone. We would normally like to provide an official 48 hour notice but the perfect storm we find ourselves in means we just don’t have this luxury."

princeperch

7,911 posts

246 months

Thursday 23rd March 2023
quotequote all
When a mortgage product is offered , my understanding is that the rate offered is based on a fixed tranche of funding that that lender has and is then earmarked for that product for a specific period of time.

I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.

That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).

WeiB.beer

10 posts

55 months

Thursday 23rd March 2023
quotequote all
My existing Halifax mortgage fix ends in September 2023, Halifax offered 3 new deals 2,5 and 10 years fixed.

We’re in our ‘forever’ home and the 10 year fix was the most competitive, so thankfully we locked this in last weekend at 3.95% for 10 years with no arrangement fee.

Mark83

1,157 posts

200 months

Thursday 23rd March 2023
quotequote all
I think I know the answer but maybe one for Sarnie et al.

Current mortgage deal of 1.3% ends 30 Sept. We can switch from 30 March. 50% LTV, maybe less but comfortably under the 60% LTV our lender's best rate stop at.

Baby due any day. I'm PAYE. My wife is self-employed. She will have no income for six months and we're self-funding maternity leave.

Plan is to stick with our current lender and fix soonish for five years. Rationale being last time we renewed with our current lender, we literally ticked a box and no interrogation. At the end of five years, my wife will be back at work and have 2+ financial years of accounts and it's business as usual.

Or would our lender want more info for affordability now rates are up when switching rates?

DonkeyApple

54,918 posts

168 months

Thursday 23rd March 2023
quotequote all
princeperch said:
When a mortgage product is offered , my understanding is that the rate offered is based on a fixed tranche of funding that that lender has and is then earmarked for that product for a specific period of time.

I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.

That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
That would be my general understanding. The 'bond' comes first, or the agreement on terms, and the issuer then goes to the retail market to fill it.

However, one would assume they make more offers than the total value of the bond as you'd think a percentage of offers are declined/not accepted? Of the case then if more accept than expected some could get rejected?

Sarnie

8,025 posts

208 months

Thursday 23rd March 2023
quotequote all
princeperch said:
When a mortgage product is offered , my understanding is that the rate offered is based on a fixed tranche of funding that that lender has and is then earmarked for that product for a specific period of time.

I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.

That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
Your understanding isn't correct. An offer isn't in anyway legally binding......they reserve the right to withdraw the offer for any reason.......market conditions could change, they could credit check you and you've taken our additional credit commitments.....you could lose or change your job......

Offer withdrawal isn't common but it's certainly possible and people shouldn't tell other people that it won't or can't happen.......