Re-mortgage now or wait?
Discussion
RenesisEvo said:
Where is this magical near 4% savings account? Anything over 3% either is 2 years fixed or has a limit on the total deposit to something probably far too low for this scenario.
3.9% for 12 months - others are available, this is just an examplehttps://savings.investec.com/fixed-rate-saver
RenesisEvo said:
Where is this magical near 4% savings account? Anything over 3% either is 2 years fixed or has a limit on the total deposit to something probably far too low for this scenario.
Nothing magical about it, the previous poster has given one example, and here is anotherhttps://www.oxbury.com/product-summary-personal-1-...
Providers seem to be very much competing to be the number one at the moment, with new deals being released all the time. I'd be surprised if you can't get a 1 year deal over 4% next month.
Things have clearly moved since I last looked (not all that long ago!) certainly something to consider. My ERC is way too big so currently considering what I can accumulate/overpay over the next year. Hopefully things are more settled come November, when the ERC drops from a horrible 6500 to around 3000-ish, still a fair chunk but the pay-back period becomes much shorter, especially with increasing gap between current and future rates.
If you have a pot of cash and intend using it to pay down the mortgage it’s probably best putting it in a fixed saver that pays more than your mortgage.
I’ve never over paid my mortgage in the last 7 years or so as I could get savings rates around the same % as the mortgage at least plus I’d have a pot of cash for emergencies over and above what I had elsewhere.
Currently have a pot of cash to pay off the mortgage in 20 months when my 2yr 1.59% fix ends and I’m waiting for a 1yr saver to hit over 4% and maybe nearer 5% before I add it to that.
I’ve never over paid my mortgage in the last 7 years or so as I could get savings rates around the same % as the mortgage at least plus I’d have a pot of cash for emergencies over and above what I had elsewhere.
Currently have a pot of cash to pay off the mortgage in 20 months when my 2yr 1.59% fix ends and I’m waiting for a 1yr saver to hit over 4% and maybe nearer 5% before I add it to that.
duckson said:
If you have a pot of cash and intend using it to pay down the mortgage it’s probably best putting it in a fixed saver that pays more than your mortgage.
I’ve never over paid my mortgage in the last 7 years or so as I could get savings rates around the same % as the mortgage at least plus I’d have a pot of cash for emergencies over and above what I had elsewhere.
Currently have a pot of cash to pay off the mortgage in 20 months when my 2yr 1.59% fix ends and I’m waiting for a 1yr saver to hit over 4% and maybe nearer 5% before I add it to that.
Different ways to do it all tbh!! I’ve never over paid my mortgage in the last 7 years or so as I could get savings rates around the same % as the mortgage at least plus I’d have a pot of cash for emergencies over and above what I had elsewhere.
Currently have a pot of cash to pay off the mortgage in 20 months when my 2yr 1.59% fix ends and I’m waiting for a 1yr saver to hit over 4% and maybe nearer 5% before I add it to that.
I’ve more than doubled my money in the stock market covid wobble the past 2.5yrs. Prior to that I did moderate overpayments while interest rates were low.
Just now with interest rates going up I just crave that warm ‘mortgage - complete’ feeling.
Then I can think about repairing the hole in the savings, which tbh for me will probably involve looking at maximising avc pension options. 4% on a savings account doesn’t excite me in the slightest.
duff said:
I remortgaged in Dec last year. As we were hoping to move in 2023 my broker talked me out of a 5 year fix at 1.09% and into a variable at .75% above base so we had some flexibility. I’ve been trying to ignore the rises and ride it out as it’s only £20 rise per .25 increase but the constant media coverage this week has had me quite stressed about where thing could go (and where I could have been on a 1.09 fix!!)
I emailed my broker at 10am yesterday to see what the options were to fix with our existing lender, Barclays. He called back at 14:00 and was able to quote in about 3 mins as he had all our info. I was staggered they were still offering a 5 year fix at 3.15% (2 year was 3.19%) which is only .15% more than the current variable. I went with the 5 year and he had the whole application done and accepted within about 10 mins.
We’re fixed at about £200p/m more than if we’d done it in Dec, so a £12k mistake over 5 years but the landscape was dramatically different back then. I’m actually feeling quite lucky now as rates seem to have risen since yesterday.
I owe you a beer fella. A megapint.I emailed my broker at 10am yesterday to see what the options were to fix with our existing lender, Barclays. He called back at 14:00 and was able to quote in about 3 mins as he had all our info. I was staggered they were still offering a 5 year fix at 3.15% (2 year was 3.19%) which is only .15% more than the current variable. I went with the 5 year and he had the whole application done and accepted within about 10 mins.
We’re fixed at about £200p/m more than if we’d done it in Dec, so a £12k mistake over 5 years but the landscape was dramatically different back then. I’m actually feeling quite lucky now as rates seem to have risen since yesterday.
Edited by duff on Thursday 29th September 10:04
Had no idea they were still offering these rates for exsiting customers, had presumed they'd all be north of 6% by now!
Just secured 7 yrs at a smudge over 3%.
Phew.
and THANK YOU!!!!
Yes current customers have time on there hands. Banks have already lent you the money. First time buyers or taking more equity seems to be the problem. Banks don’t know what they will get the money at themselves.
Like someone else said overpaying now or when rates low is best.
We took out 24 year mortgage in 2016. Haven’t been over 2.2% since then just remortgaging every 2 years with last good rate 1.19%. Now in a 5 year just over 3% deal with HSBC at current rate would be paid off in 16 years so reduced the initial 24 years a bit.
Anything under 4% now is still a bargain. Rates should be 5-6%ish we just had cheap cash for so long.
Throwing it out there and it’s risky what about money transfer deals?
I got virgin money transfer deal 2 days ago. 0% for 15 months with 4% upfront fee.
HSBC not money but balance transfer 15 month at 2.99% last Friday.
Obviously don’t just load yourself up with too much debt unnecessarily. Make sure you can pay the money off in the time scale.
Like someone else said overpaying now or when rates low is best.
We took out 24 year mortgage in 2016. Haven’t been over 2.2% since then just remortgaging every 2 years with last good rate 1.19%. Now in a 5 year just over 3% deal with HSBC at current rate would be paid off in 16 years so reduced the initial 24 years a bit.
Anything under 4% now is still a bargain. Rates should be 5-6%ish we just had cheap cash for so long.
Throwing it out there and it’s risky what about money transfer deals?
I got virgin money transfer deal 2 days ago. 0% for 15 months with 4% upfront fee.
HSBC not money but balance transfer 15 month at 2.99% last Friday.
Obviously don’t just load yourself up with too much debt unnecessarily. Make sure you can pay the money off in the time scale.
Frankstar_Rapper said:
HSBC Remortgage rates now with LTV < 60%
2 Year Fixed Fee Saver
5.89%
2 Year Fixed Standard
5.64%
fixed
Yep nationwide has increased again today again, 3rd rise in a week. For 5yr fixed It as 4.44% yesterday. 5.14% today.only a week ago it was 3.69% 2 Year Fixed Fee Saver
5.89%
2 Year Fixed Standard
5.64%
fixed
Nearly 1.5% rate rise in a week !!
How are people getting things done so quickly? Had a chat with Barclays and they gave me a good rate but I have a call next week and then with the mortgage advisor the following week.
My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
bobski1 said:
How are people getting things done so quickly? Had a chat with Barclays and they gave me a good rate but I have a call next week and then with the mortgage advisor the following week.
My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
I swear there are people in this game that genuinely love to hang out the amount of time it takes, I really do.My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
bobski1 said:
How are people getting things done so quickly? Had a chat with Barclays and they gave me a good rate but I have a call next week and then with the mortgage advisor the following week.
My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
If you’re remortgaging it should be way quicker than that. HSBC I just went online. Clicked the deal I wanted. No changes to circumstances, done and accepted with 30 mins!!!My broker is away so his partner needs me to go through all the details again before searching and applying, seems to be very long
I’m buying a new property, so not remortgage, but I just did it all online, the rate is secured once you paid the booking fee apparently, though I havn’t submitted all the payslips etc or received the final offer yet.
Was a little sceptical, but called up hsbc to double check and apparently it’s fine, and also refundable or transferable to a different house should I change mind about present house purchase. Guess I’ll find out soon enough if this is true!
ive ever understood what mortgage brokers do? Presumably you have to fill out forms either way?
Was a little sceptical, but called up hsbc to double check and apparently it’s fine, and also refundable or transferable to a different house should I change mind about present house purchase. Guess I’ll find out soon enough if this is true!
ive ever understood what mortgage brokers do? Presumably you have to fill out forms either way?
Edited by lizardbrain on Friday 30th September 15:45
Aiminghigh123 said:
If you’re remortgaging it should be way quicker than that. HSBC I just went online. Clicked the deal I wanted. No changes to circumstances, done and accepted with 30 mins!!!
Same with Accord. Just click the deal you want from a list of 'products'. Job done, letter in the post a few days later. I fixed at 2.7% for two years after which I will be mortgage free. This was last week by the way, before the stuff hit the fan.
Edited by StressedEric on Friday 30th September 15:44
re-mortgaging with your existing lender can be done all online in a few minutes (just watch for the ERC). Switching lenders means the longer phone calls (45 mins) etc in my experience, and that was just moving from HSBC to First Direct (same company).
Recently arranged our remortgage from Feb-23 in August, HSBC wouldnt move from the 3 months before to incur no ERC, wanted to get it sorted last month so went with First Direct.
Recently arranged our remortgage from Feb-23 in August, HSBC wouldnt move from the 3 months before to incur no ERC, wanted to get it sorted last month so went with First Direct.
Edited by redandwhite on Friday 30th September 16:03
bobski1 said:
I have a 5yr fixed which is due to end September next year. I should have around 240k left at that point but that is without overpayments. I plan on increasing them to around £200/month from this month to help bring the balance down as much as I can until the rate ends.
Given what is going on with rates at the moment I am curious what people think to paying a fee to end the mortgage now and fix again for 5-10yrs and hope to save that fee by paying the lower rate vs waiting till June next year which is when I can sort out a new rate.
only you can answer that, fire up excel and look at a few scenarios: current rate with ERC (total cost, remaining principal at the end etc) and theorise about a few rate increases (5%,6%,7% etc) - if your current situation compares with a future situation of much higher rates then it may pay to wait it out, if not arrange the fix now. Dont forget to include the extra interest paid on your current deal (between now and end of existing term) -plus ERC, if you decide to ditch it early.Given what is going on with rates at the moment I am curious what people think to paying a fee to end the mortgage now and fix again for 5-10yrs and hope to save that fee by paying the lower rate vs waiting till June next year which is when I can sort out a new rate.
Edited by redandwhite on Friday 30th September 16:03
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