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  • FIRST POST
    • rtho782
    • By rtho782 8th Feb 18, 9:03 PM
    • 1,052Posts
    • 767Thanks
    rtho782
    Remortgage now impossible?
    • #1
    • 8th Feb 18, 9:03 PM
    Remortgage now impossible? 8th Feb 18 at 9:03 PM
    We recently switched from our 2 year fix to a 2 year tracker with Nationwide, planning to go on to a fix when our LTV hits 80% (from 95% when we purchased) in about 9 months.

    Of course, in the few days since, Nationwide have ramped their 5y fix rates from 2.24% to 2.74% over the course of a few days despite no changes to base rate.

    We looked at other lenders, some of which (TSB, Yorkshire, Principality) will offer us 2-2.04%, but it seems we can't get these on the basis of affordability, even though we want to increase the term from 15y to 23y (this was always the plan, pay down capital for first two years then extend term).

    I guess this means we're stuck with Nationwide, but they mentioned if we wanted to change the term we had to do a full application.... which I guess means affordability hoops?

    We borrowed £218500 at the start, owe £200000 now, and were paying £1488 a month, but it seems that now we can only borrow £174k ish, and "can't afford" £900 a month.

    I feel like there isn't much we can do here?
    Deposit Saved since 01/12/15: £13,000 / £15,000 House Bought!

    Debt Cleared since 01/12/15: £6,000 / £7,500
Page 1
    • getmore4less
    • By getmore4less 8th Feb 18, 9:44 PM
    • 31,366 Posts
    • 18,795 Thanks
    getmore4less
    • #2
    • 8th Feb 18, 9:44 PM
    • #2
    • 8th Feb 18, 9:44 PM
    The breakpoint with NW is 75% 1.99%

    which tracker did you get?
    • Thrugelmir
    • By Thrugelmir 8th Feb 18, 10:12 PM
    • 57,429 Posts
    • 50,714 Thanks
    Thrugelmir
    • #3
    • 8th Feb 18, 10:12 PM
    • #3
    • 8th Feb 18, 10:12 PM
    Of course, in the few days since, Nationwide have ramped their 5y fix rates from 2.24% to 2.74% over the course of a few days despite no changes to base rate.
    Originally posted by rtho782
    There's no connection. Base rate is variable. Lenders woul be shooting themselves in the foot to offer fixed rates in a period of time will ost certainly be rising. The increased interest rate reflects the increased cost of borrowing the lender.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • rtho782
    • By rtho782 9th Feb 18, 8:02 AM
    • 1,052 Posts
    • 767 Thanks
    rtho782
    • #4
    • 9th Feb 18, 8:02 AM
    • #4
    • 9th Feb 18, 8:02 AM
    I'm more annoyed about the mortgage prisoner aspect stopping me changing lender than the fact that Nationwide have changed their available rates.

    If I could change lender, I could get 2.04% still from TSB or Yorkshire.
    Deposit Saved since 01/12/15: £13,000 / £15,000 House Bought!

    Debt Cleared since 01/12/15: £6,000 / £7,500
    • Brock_and_Roll
    • By Brock_and_Roll 9th Feb 18, 9:15 AM
    • 787 Posts
    • 759 Thanks
    Brock_and_Roll
    • #5
    • 9th Feb 18, 9:15 AM
    • #5
    • 9th Feb 18, 9:15 AM
    FWW fixed rates offered by banks are not directly affected by the base rate.


    Without going into the complexities, in a nutshell fixed rates are based on a series of interest-rate swaps based off the forward interest rate yield curve.


    So in plain English, the base rate might still be 0.5% but the yield curve is now steepening as money market traders anticipate higher interest rates in the future.
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