FTB - how to fix mortgage rates?

ginvzt

We are first time buyers and we think to buy a house in next month or so. I know that interest rates are suppossed to be risen by Bank of England by 0.25%. Of course, banks will pass it on very quickly.

How can I fix my mortgage rates at the current rate when I haven't had an offer accepted yet? (well, haven't made any) Can I take out some agreement with back that would fix my rates at the current level?

lynzpower

Have you got an offer in principle from your lender yet?

If not, thats the step you need to take NOW, you can choose a fixed product- either 2 years or whatever, that would fix the cost for you & help you to set your own budget.

ginvzt

lynzpower wrote:

Have you got an offer in principle from your lender yet?

If not, thats the step you need to take NOW, you can choose a fixed product- either 2 years or whatever, that would fix the cost for you & help you to set your own budget.

I got mortgage promise from Halifax, but it deosn't fix any interest rates. We are going to see HSBC on Friday, so I think we will have to ask for Aggreement in Principle then and fix the rates. Wouldn't like to overpay!!!!

lynzpower

Are you not using a whole of market broker? Doing so would save you a hell of a lot of hassle. Also will preserve your credit rating as I understand having an offer, then not taking it can impact negitavly on your rating.

Id see a broker, tell them you want a fixed product, what can they find for you.

ginvzt

We are thinking about getting 100% mortgage. HSBC don't charge higher lending fee, although the interest rate is 5.55%. I looked at Halifax which offers 97% at 4.99%. But then charge nearly 3K in higher lending fee.

I haven't seen many 100% lenders that don't charge HLF.

mi-key

Beware than an agreement in principal WONT fix the rates ! if you apply for a mortgage now, you will need to pay a RESERVATION FEE to be sure of getting that interest rate. ( This is a fee basically saying 'hold this mortgage for me at this rate for X amount of months until we find a house to buy ).

If you just get an AIP, the lender can withdraw whatever they have offered you at any time, and offer you a higher rate. A lot lenders have already withdrawn their current deals and wont be bringing out new ones until after the interest rate rise in November.

barnaby-bear

mi-key wrote:

Beware than an agreement in principal WONT fix the rates ! if you apply for a mortgage now, you will need to pay a RESERVATION FEE to be sure of getting that interest rate. ( This is a fee basically saying 'hold this mortgage for me at this rate for X amount of months until we find a house to buy ).

If you just get an AIP, the lender can withdraw whatever they have offered you at any time, and offer you a higher rate. A lot lenders have already withdrawn their current deals and wont be bringing out new ones until after the interest rate rise in November.

Yep it's the arrangement/reservation fee that holds the product, the pain in the butt being usually only for 3 months which pushed us because of stupid delays, some lenders do a 2month extension if don't complete within the 12 weeks others make you apply for the current range of products.