Remortgage Advice
Discussion
My existing mortgage rate is due to come to an end this coming May so I have started to look at my options.
Is a tracker mortgage now the route to take?
Or
Stay with a discounted fixed rate?
Or
Something else?
I usually take a fix rate for 24 months with my current rate fixed at 1.54% until May
My last loan to value given by NatWest was 67%
Any advice greatly appreciated.
Stay Safe!
Is a tracker mortgage now the route to take?
Or
Stay with a discounted fixed rate?
Or
Something else?
I usually take a fix rate for 24 months with my current rate fixed at 1.54% until May
My last loan to value given by NatWest was 67%
Any advice greatly appreciated.
Stay Safe!
Milkbuttons said:
My existing mortgage rate is due to come to an end this coming May so I have started to look at my options.
Is a tracker mortgage now the route to take?
Or
Stay with a discounted fixed rate?
Or
Something else?
I usually take a fix rate for 24 months with my current rate fixed at 1.54% until May
My last loan to value given by NatWest was 67%
Any advice greatly appreciated.
Stay Safe!
Very few of our clients are taking Tracker rates...........fixed, and fixed for 3-5 years is the most common currently......Is a tracker mortgage now the route to take?
Or
Stay with a discounted fixed rate?
Or
Something else?
I usually take a fix rate for 24 months with my current rate fixed at 1.54% until May
My last loan to value given by NatWest was 67%
Any advice greatly appreciated.
Stay Safe!
I can only speak from personal experience but I've currently agreed a fixed 5 year term with Natwest at 2% for 5 years, more than happy with that as my current fixed rate finishing at the start of July was also a 5 year deal at 3.9% (I believe).
I'm no financial advisor at all and just speaking from personal experience.
I could maybe have shaved a couple of points off that by going for a shorter fixed term but I like the certainty of it so I can let it run and carry on with other aspects of my life.
I'm no financial advisor at all and just speaking from personal experience.
I could maybe have shaved a couple of points off that by going for a shorter fixed term but I like the certainty of it so I can let it run and carry on with other aspects of my life.
Milkbuttons said:
Any idea why no one is taking the tracker rates?
The time to benefit from a Tracker was about two years ago...............base rate is 0.10%, do you see it dropping from there?Tracker at 0.99% or fixed at not far off the same rate, for low LTV's.......almost no point in choosing the tracker and being exposed to rate rises........if/when the government decide to add back on the emergency 0.65% they took off recently......if that happens at any point in the next two years, you would be out of pocket.........
Why get locked into a "fix" contract with fees and penalties when you could retain complete flexibility?
Unless you think interest rates are going to jump up significantly within 3-5 years after Covid19 - and bearing in mind they've been going in the opposite direction for more than a decade after the last crisis....
Unless you think interest rates are going to jump up significantly within 3-5 years after Covid19 - and bearing in mind they've been going in the opposite direction for more than a decade after the last crisis....
rockin said:
Why get locked into a "fix" contract with fees and penalties when you could retain complete flexibility?
Unless you think interest rates are going to jump up significantly within 3-5 years after Covid19 - and bearing in mind they've been going in the opposite direction for more than a decade after the last crisis....
"Complete flexibility" comes at a premium to fix'ing.........Lifetime trackers are currently nearly 2% at 60% LTV.......five year fixed rates at the same LTV, with no fees are from 1.70%...............so, who would choose the tracker rate, expose themselves to potential rate increases and pay an extra 0.3% for the pleasure?Unless you think interest rates are going to jump up significantly within 3-5 years after Covid19 - and bearing in mind they've been going in the opposite direction for more than a decade after the last crisis....
No value in Tracker rates currently, that ship has sailed.
Sarnie said:
who would choose the tracker rate, expose themselves to potential rate increases and pay an extra 0.3% for the pleasure?
All people have to do is ask themselves - "Why are the figures that way round? Why do I appear to be getting more for less?".Probable answer: Because the finance house makes more money from locking people into a fixed term contract. In other words, enough people find their circumstances change and get hit with penalties to make up the difference and more.
Who knows, perhaps mortgage brokers get a slice of that pie as well.
I'm always attracted by retaining complete flexibility wherever possible.
I have never fixed more than 2 years I've always felt that interest rates after 2008 wouldn't go silly high, everyone for years has been used to low rates, almost making them the norm.
If rated were to climb as high as 5% there would be alot of people unable to pay their mortgage I would imagine.
It still seems as though a discounted fix rate is favoured.
The lowest rate I've been quoted so far was 1.14% over 24 months, only problem is the lender wants nearly £2500 upfront fee which I dont like.
If rated were to climb as high as 5% there would be alot of people unable to pay their mortgage I would imagine.
It still seems as though a discounted fix rate is favoured.
The lowest rate I've been quoted so far was 1.14% over 24 months, only problem is the lender wants nearly £2500 upfront fee which I dont like.
rockin said:
All people have to do is ask themselves - "Why are the figures that way round? Why do I appear to be getting more for less?".
Probable answer: Because the finance house makes more money from locking people into a fixed term contract. In other words, enough people find their circumstances change and get hit with penalties to make up the difference and more.
Who knows, perhaps mortgage brokers get a slice of that pie as well.
I'm always attracted by retaining complete flexibility wherever possible.
Your inference that there is any sort of a benefit in advising a client to take the fixed is a bit offensive.Probable answer: Because the finance house makes more money from locking people into a fixed term contract. In other words, enough people find their circumstances change and get hit with penalties to make up the difference and more.
Who knows, perhaps mortgage brokers get a slice of that pie as well.
I'm always attracted by retaining complete flexibility wherever possible.
Mortgage brokers get paid as a percentage of the amount borrowed. Makes no odds to the broker if the take the 2,3,5,10 year fixed or the 2 year, 5 year or lifetime tracker. Which ever product the client chooses, the broker gets paid the same.
My advice is always based on what I would do in each clients circumstances, which has stood me well over the last 15 years.
If I was a client choosing between a 1.70% five year fixed and a lifetime tracker at 1.99%, I'd take the fixed every day of the week. But thats me...........clients are free to take it and do what they like with it.........
Sarnie
What’s happened to mortgage rates since the announced BOE rate cut and interest rate curve flattening. My fixed rate is due up in September/October time and I’m wondering how long we’ll need to wait to see it come through on the mortgage rates, or whether bank funding costs are going to moderate that initially
What’s happened to mortgage rates since the announced BOE rate cut and interest rate curve flattening. My fixed rate is due up in September/October time and I’m wondering how long we’ll need to wait to see it come through on the mortgage rates, or whether bank funding costs are going to moderate that initially
Edited by sammyb349 on Saturday 28th March 08:38
sammyb349 said:
Sarnie
What’s happened to mortgage rates since the announced BOE rate cut and interest rate curve flattening. My fixed rate is due up in September/October time and I’m wondering how long we’ll need to wait to see it come through on the mortgage rates, or whether bank funding costs are going to moderate that initially
Well, lots of lenders have removed sections of their product ranges currently....but this is a temporary measure due to reduced staffing levels and surveyors not able to get out to visist proerties but this is only really affecting purchase, most remortgage are being done with online desk top valuations or Automated Valuation Modelling (AVM's).....What’s happened to mortgage rates since the announced BOE rate cut and interest rate curve flattening. My fixed rate is due up in September/October time and I’m wondering how long we’ll need to wait to see it come through on the mortgage rates, or whether bank funding costs are going to moderate that initially
Edited by sammyb349 on Saturday 28th March 08:38
The rates available are largely the same as they were before the rate cuts, predominantly because they are currently deemed to be emergency temporary measures and the plan is to add the 0.65% back on in coming months.......but as we can all see, plans are changing day by day currently.......if I were you I would start your proceedings around May/June when hopefully we are coming out of the other side of this......
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