Mortage - lock new rate now or wait... sorry!
Discussion
Hi all,
Our 5yr fix comes to an end on 31st March 2024 and Natwest have sent a letter today about this. Their varirable rate is 7.99% which would see a 79% increase in our monthy payments. We've a 54% LTV based on the current HPI.
Our broker who arranged the mortgage last time is not available now until the end of November but Natwest are offering (amongst other options) a 5yr fix at 5.2% with a £995 product fee or 5.4% with no fee.
My question is, can I choose one of these now to lock in the rate (AIUI if the Natwest rate drops between now and 31st March then we can avail of the lower Natwest rate) and then speak to the mortage advisor at the end of November and if she can find a better deal with another lender we can still move over to them - am I correct in thinking this?
I don't particularly want to wait until the end of November in case of any BoE base rate changes at the start of November if that makes sense?
Thanks
Our 5yr fix comes to an end on 31st March 2024 and Natwest have sent a letter today about this. Their varirable rate is 7.99% which would see a 79% increase in our monthy payments. We've a 54% LTV based on the current HPI.
Our broker who arranged the mortgage last time is not available now until the end of November but Natwest are offering (amongst other options) a 5yr fix at 5.2% with a £995 product fee or 5.4% with no fee.
My question is, can I choose one of these now to lock in the rate (AIUI if the Natwest rate drops between now and 31st March then we can avail of the lower Natwest rate) and then speak to the mortage advisor at the end of November and if she can find a better deal with another lender we can still move over to them - am I correct in thinking this?
I don't particularly want to wait until the end of November in case of any BoE base rate changes at the start of November if that makes sense?
Thanks
PH user Sarnie is generally well regarded > https://www.pistonheads.com/gassing/topic.asp?h=0&...
chml said:
Hi all,
Our 5yr fix comes to an end on 31st March 2024 and Natwest have sent a letter today about this. Their varirable rate is 7.99% which would see a 79% increase in our monthy payments. We've a 54% LTV based on the current HPI.
Our broker who arranged the mortgage last time is not available now until the end of November but Natwest are offering (amongst other options) a 5yr fix at 5.2% with a £995 product fee or 5.4% with no fee.
My question is, can I choose one of these now to lock in the rate (AIUI if the Natwest rate drops between now and 31st March then we can avail of the lower Natwest rate) and then speak to the mortage advisor at the end of November and if she can find a better deal with another lender we can still move over to them - am I correct in thinking this?
I don't particularly want to wait until the end of November in case of any BoE base rate changes at the start of November if that makes sense?
Thanks
Why is your Broker not available until the end of November?Our 5yr fix comes to an end on 31st March 2024 and Natwest have sent a letter today about this. Their varirable rate is 7.99% which would see a 79% increase in our monthy payments. We've a 54% LTV based on the current HPI.
Our broker who arranged the mortgage last time is not available now until the end of November but Natwest are offering (amongst other options) a 5yr fix at 5.2% with a £995 product fee or 5.4% with no fee.
My question is, can I choose one of these now to lock in the rate (AIUI if the Natwest rate drops between now and 31st March then we can avail of the lower Natwest rate) and then speak to the mortage advisor at the end of November and if she can find a better deal with another lender we can still move over to them - am I correct in thinking this?
I don't particularly want to wait until the end of November in case of any BoE base rate changes at the start of November if that makes sense?
Thanks
Don't wait for them to secure a rate........after some consistent rate drops recently we had this from a lender today;
"New inflation data has set off fresh swap rate volatility, which means we have to re-price our products accordingly.
As of 8 pm on Sunday 22 October 2023, we’re increasing our rates. >80% LTV rates will increase by up to 35 bps. <80% LTV rates will increase by up to 20 bps."
Get your rate secured ASAP........
Sarnie said:
Why is your Broker not available until the end of November?
Don't wait for them to secure a rate........after some consistent rate drops recently we had this from a lender today;
"New inflation data has set off fresh swap rate volatility, which means we have to re-price our products accordingly.
As of 8 pm on Sunday 22 October 2023, we’re increasing our rates. >80% LTV rates will increase by up to 35 bps. <80% LTV rates will increase by up to 20 bps."
Get your rate secured ASAP........
She’s away on holiday apparently. Is the NatWest rate a decent rate on the face of it then? I’m leaning towards just doing the 5yr fix and then it’s done and I don’t need to worry about it… for a while 😂 Don't wait for them to secure a rate........after some consistent rate drops recently we had this from a lender today;
"New inflation data has set off fresh swap rate volatility, which means we have to re-price our products accordingly.
As of 8 pm on Sunday 22 October 2023, we’re increasing our rates. >80% LTV rates will increase by up to 35 bps. <80% LTV rates will increase by up to 20 bps."
Get your rate secured ASAP........
Thanks all, really appreciate the replies!
chml said:
She’s away on holiday apparently. Is the NatWest rate a decent rate on the face of it then? I’m leaning towards just doing the 5yr fix and then it’s done and I don’t need to worry about it… for a while ??
Thanks all, really appreciate the replies!
What you've been quoted seems to be about the going rate at the moment I guess? First time buyer, have just had our mortgage agreed this week. We're putting 15% down, Nationwide offered us 5.1% on a 5-year fix. 2-year fix wasn't even worth looking at as the rate jumped up by around 0.6% from memory. Thanks all, really appreciate the replies!
At least the 5.2% you've been offered is a known quantity as of right now. As others have said, impossible to say whether its going to go up or down so better the devil you know!
I am currently with Natwest and last year I got a renewal offer for five years via email. I was going to go with it, but the broker who arranged it called and asked if he could try and do better.
The best offer he could get as a broker was still with Natwest and it was a fraction of a percent better (0.05% sounds about right, it was in that ball park)
Not wanting to pay him a fee I declined his offer until he said he would do it for free. Clearly the kickback he got from Natwest made it worth his while.
What I am trying to say is I doubt very much your broker would be able to do better so I would just agree to the quote now rather than wait.
The best offer he could get as a broker was still with Natwest and it was a fraction of a percent better (0.05% sounds about right, it was in that ball park)
Not wanting to pay him a fee I declined his offer until he said he would do it for free. Clearly the kickback he got from Natwest made it worth his while.
What I am trying to say is I doubt very much your broker would be able to do better so I would just agree to the quote now rather than wait.
Same position as you, ending in Feb and with natwest so thought id better sort it. Few quid in it online with other banks so just did it online which was a doddle.
I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
bazza white said:
Same position as you, ending in Feb and with natwest so thought id better sort it. Few quid in it online with other banks so just did it online which was a doddle.
I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
If rates drop you can call up, and they are obliged to offer you a better product if it is available (I believe). I did this 4 times with Halifax earlier in the year.I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
Cats_pyjamas said:
bazza white said:
Same position as you, ending in Feb and with natwest so thought id better sort it. Few quid in it online with other banks so just did it online which was a doddle.
I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
If rates drop you can call up, and they are obliged to offer you a better product if it is available (I believe). I did this 4 times with Halifax earlier in the year.I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
bazza white said:
Cats_pyjamas said:
bazza white said:
Same position as you, ending in Feb and with natwest so thought id better sort it. Few quid in it online with other banks so just did it online which was a doddle.
I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
If rates drop you can call up, and they are obliged to offer you a better product if it is available (I believe). I did this 4 times with Halifax earlier in the year.I went for the 5.4% rate over the 5.2 as it was £10 more so £600 over the 5 years but no product fees to pay. glad I didnt rush a few months ago as it was £70 more a month.
Now I've fixed rates are bound to drop like they did last time.
Joey Deacon said:
I am currently with Natwest and last year I got a renewal offer for five years via email. I was going to go with it, but the broker who arranged it called and asked if he could try and do better.
The best offer he could get as a broker was still with Natwest and it was a fraction of a percent better (0.05% sounds about right, it was in that ball park)
Not wanting to pay him a fee I declined his offer until he said he would do it for free. Clearly the kickback he got from Natwest made it worth his while.
What I am trying to say is I doubt very much your broker would be able to do better so I would just agree to the quote now rather than wait.
I'd personally never pay a broker for my circumstances. If you are plain vanilla - no reason to. The best offer he could get as a broker was still with Natwest and it was a fraction of a percent better (0.05% sounds about right, it was in that ball park)
Not wanting to pay him a fee I declined his offer until he said he would do it for free. Clearly the kickback he got from Natwest made it worth his while.
What I am trying to say is I doubt very much your broker would be able to do better so I would just agree to the quote now rather than wait.
A lot of them want 300 or so from the client as a fee on top of the procuration fee which In most instances is between 1-2k dependant on the lender and how big the mortgage is.
Given how quickly a straightforward mortgage takes to arrange you be nuts to pay anything on top of the procuration fee the lender gives them.
Similar situation with current rate ending in Feb.
Checking the comparison sites, they are all around the same price.
If I lock in a deal now with my current lender, probably a 2yr fixed - are you tied into that or can you cancel before the new deal starts? Would like to speak to a broker, although not expecting they'll be able to make a significant dent in the payments.
Checking the comparison sites, they are all around the same price.
If I lock in a deal now with my current lender, probably a 2yr fixed - are you tied into that or can you cancel before the new deal starts? Would like to speak to a broker, although not expecting they'll be able to make a significant dent in the payments.
mattman said:
Similar situation with current rate ending in Feb.
Checking the comparison sites, they are all around the same price.
If I lock in a deal now with my current lender, probably a 2yr fixed - are you tied into that or can you cancel before the new deal starts? Would like to speak to a broker, although not expecting they'll be able to make a significant dent in the payments.
I'm a broker, happy to chat if you want to drop me a mail Checking the comparison sites, they are all around the same price.
If I lock in a deal now with my current lender, probably a 2yr fixed - are you tied into that or can you cancel before the new deal starts? Would like to speak to a broker, although not expecting they'll be able to make a significant dent in the payments.
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