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Competitive Mortgage deals drying up - what to do?

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pmurphy109
pmurphy109 Posts: 5 Forumite
in Mortgages & endowments
My current mortgage deal of 4.95% comes to an end in August and so I need to remortgage by then. I've taken the advice of fellow posters on the mortgages threads and waited until interest rates come down.

However, mortgage deals are being pulled because they are over-subscribed, and I am concerned that this trend will continue, with the result that when I need to settle on a remortgage deal in June in order to process by August deadline, there will be few competitve mortgage deals available.

Should I get a mortgage deal of 3 year fixed rate mortgage of 6.09% from my bank (Cooperative) now or should I hold on until June in case Bank of England base rates come down and bring bank interests down with them?
«13456

Comments

  • beecher
    beecher Posts: 2,497 Forumite
    I wouldn't bank on base rate cuts leading to bank rate cuts. Does the Co-op deal have an arrangement fee? If not, it sounds like a good enough deal, though I'd be tempted to go for a 5 year deal if they have one.

    Advice seems to be, to take a deal when it is available if it looks ok, rather than waiting to see if rates go down as by then the deal may very well not be available at all!
  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
    Im in exactly the same boat, I need to remortgage in June and I'm worried there wont be any good deals left! Would people recommend a fixed rate? If the general concensus is that rates will either decrease slightly or stay the same, why dont people get a variable/tracker? I dont know much about these but from what I can see they often dont have arrg fees and no exit costs, so if rates did shoot up you could just remortgage to a fixed rate without incurring a load of costs? Or am I totally wrong??!
  • nixinix
    nixinix Posts: 246 Forumite
    unhapppy with thread direction so deleted post.....
    Boo!:rotfl:
  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
    nixinix wrote: »
    I am in a similar position but my current mortgage deal ends in November....ideally I also want to move before then to be in catchment area for good school for ds who starts nursery at our chosen school in September but not guaranteed school place.... getting really worried about deals, and unsure what to do...

    I dont know what things are like in your area but in Lancaster nothing is selling. On my street there are 4 houses that have been for sale since November (to my knowledge) and there doesnt seem to be much activity. Everywhere I drive there are hubndreds of 'For Sale' signs but no 'Sold' signs. It wasn't helped by the HIPs coming in, because the agents in Lancaster sent everyone letters telling them if they were thinking of selling to do it now and avoid HIP costs... so the market is flooded. Then if people start getting desperate because their fixed rate has ended and they cant afford standard rate, then deals will get more cometitive, people will put in really cheeky offers well below asking price, a lot will accept just to get rid and avoid repossession and that'll drive down values even more. For those who just want to move house and dont need to get rid urgently wont have a chance of selling because someone in the same street probably is in the aforesaid difficulty and will sell pretty much the same house for less than you
  • farhad1965
    farhad1965 Posts: 112 Forumite
    Miss Kensington

    For June, you need to get off the mark asap, but my suggestion is wait until next week's (10th April) meeting of the Bank of England and see if they drop the base rate by .25% or whatever. If they do, there MAY be some reduction in the mortgage rates, which no doubt will be pounced on by all; me too!

    Good luck
    missk_ensington wrote: »
    Im in exactly the same boat, I need to remortgage in June and I'm worried there wont be any good deals left! Would people recommend a fixed rate? If the general concensus is that rates will either decrease slightly or stay the same, why dont people get a variable/tracker? I dont know much about these but from what I can see they often dont have arrg fees and no exit costs, so if rates did shoot up you could just remortgage to a fixed rate without incurring a load of costs? Or am I totally wrong??!
  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
    farhad1965 wrote: »
    Miss Kensington

    For June, you need to get off the mark asap, but my suggestion is wait until next week's (10th April) meeting of the Bank of England and see if they drop the base rate by .25% or whatever. If they do, there MAY be some reduction in the mortgage rates, which no doubt will be pounced on by all; me too!

    Good luck

    Thanks, Id love to but I dont graduate from uni til July so dont have an income yet (im currently on a self cert but dont want to remortgage on a self cert). My mum is in the process of getting me put on the books for her company (small white lie I know) so I can obtain payslips before June, get the mortgage and then "quit" mums company, which by then I'll be in full time graduate employment anyway.

    When I was getting my mortgage 2 years ago some companies only wanted 1 month of payslips, or a letter from employer, this time its a lot harder they want 3 months minimum and there's no getting around them like last time :-(
  • beecher
    beecher Posts: 2,497 Forumite
    missk_ensington wrote: »
    Im in exactly the same boat, I need to remortgage in June and I'm worried there wont be any good deals left! Would people recommend a fixed rate? If the general concensus is that rates will either decrease slightly or stay the same, why dont people get a variable/tracker? I dont know much about these but from what I can see they often dont have arrg fees and no exit costs, so if rates did shoot up you could just remortgage to a fixed rate without incurring a load of costs? Or am I totally wrong??!

    Problem is the fixed rates would be substantially higher if rates did shoot up, so it is probably not a good option for those struggling to pay their mortgage at the moment. Inflation's a big worry and I wouldn't be over confident that rates are going down over the long term - historically they're still fairly low.

    The advice on here seems to be that if you find a good rate, go for it - might be a good idea to see what your own lender will offer you.
  • nixinix
    nixinix Posts: 246 Forumite
    deleted my post as thread has changed direction.... :(
    Boo!:rotfl:
  • farhad1965
    farhad1965 Posts: 112 Forumite
    I dont graduate from until July

    :T Its always good to see a young moneysaver :T
    I wish I was doing what you are doing when I was a student 20 years ago.
  • beecher
    beecher Posts: 2,497 Forumite
    missk_ensington wrote: »
    My mum is in the process of getting me put on the books for her company (small white lie I know) so I can obtain payslips before June, get the mortgage and then "quit" mums company, which by then I'll be in full time graduate employment anyway.

    That's a bit more than a white lie. You'll be very lucky not to be caught out with that one. I really don't think you should post such incriminating stuff on a public forum.
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