First Direct swamped by lifetime tracker mortgage applications

DervProf

doire wrote: »

My wife has been waiting 6 weeks to have her ISA transfered.
Does that mean the bank is "swamped". I'd say like all banks they are slow as f**k at everything

Slow ISA transfers are quite common. I can understand a bank taking a few weeks to sort out a mortgage, but a simple transfer of funds should take no more than a week or two (I understand that transfering an ISA involves a little more work for them, but I can`t see it being a lot).

My mum waited 4.5 months to get a transfer of her ISA sorted a couple of years ago. My transfer this year didn`t exactly inspire confidence in the banks. Old provider said they`d sent the cheque, new provider told me that they hadn`t received it 10 days later. I suppose it must have been "lost in the post" (which turned out to not be the case).

Graham_Devon

DervProf wrote: »

2.29% above base rate with a 75% deposit. That might seem quite good at the moment.

If interest rates start to rise, and you decide you want an alternative deal (say a fixed rate deal), how much does it cost to switch to another deal/provider ?

My guess, is that if rates did start to rise, it would be too late to switch to a better deal, that isn't going to cost you a LOT more than this mortgage at the time of swtich.

It's like sitting on SVR while the good times roll. As soon as the letters start popping through the post about increases, the decent deals will have dried up.

You need to switch before the rates rise, or have an indication of rising.

Really2

Graham_Devon wrote: »

My guess, is that if rates did start to rise, it would be too late to switch to a better deal, that isn't going to cost you a LOT more than this mortgage at the time of swtich.

It's like sitting on SVR while the good times roll. As soon as the letters start popping through the post about increases, the decent deals will have dried up.

You need to switch before the rates rise, or have an indication of rising.

You do it just before BOE base start to drop/increase. Keep an eye on the voting figures.
In reality you are going to be looking about 1/4% worse than what was offered before if would wait until after a rise.
It is hardly going to be massive.

But simple thing is if you have a mortgage always keep one eye on rates it really is that simple.

DervProf

Blacklight wrote: »

From the article:

"The best idea is to check out how much your mortgage will cost you if it goes up by 1% or 2% and consider if you can afford the rise," he said. "If not, fix,"

You won't get a better fixed rate deal than right now. If interest rates go up then it's likely you'll be better placed to afford the repayments when the term ends, you've paid off some of the capital and your wages have increased.

If interest rates rise towards the end of the term (normally 25 years), then yes. What if interest rates rise after say 5 years ? What if your wages haven`t increased very much by then. I know these are far fetched scenarios , but they`re worth considering, aren`t they ?

Generali

Really2 wrote: »

Grahams favorite paper but he missed this one.
http://www.guardian.co.uk/money/2010/aug/11/first-direct-lifetime-tracker-mortgage



I have posted all of the text just in case I stopped it at a point someone did not approve of.

Be interesting to know how much of this transpires to knew purchases on the back of the figures yesterday.

You mustn't quote it all, it's breach of copyright. You'll just have to take your telling off like a man.

DervProf

Really2 wrote: »

But simple thing is if you have a mortgage always keep one eye on rates it really is that simple.

And before you sign up to a "deal", always consider your employment prospects, interest rate prospects and very importantly any exit fees from the deal you are taking on.

DervProf

chucky wrote: »

Isn`t that where the UK property market goes for lunch ?

Really2

DervProf wrote: »

And before you sign up to a "deal", always consider your employment prospects, interest rate prospects

If everyone did that no one would even rent let alone buy? You never know.

IR prospects, so at the moment things look to be very low for up to 2014, what would that tell you

DervProf

Really2 wrote: »

IR prospects, so at the moment things look to be very low for up to 2014, what would that tell you

My mortgage repayments should be fairly static for the next 3-4 years, after that they may well start to rise ?

IveSeenTheLight

DervProf wrote: »

My mortgage repayments should be fairly static for the next 3-4 years, after that they may well start to rise ?

Why not overpay in those 3-4 years.
You'll reduce the capital and the interest you pay on the loan.
When rates start to rise, youll be in a far better position