Predicted increase in cost of Mortgages

With the Bank of England announcing the end of Funding for Lending for Mortgages. Does anyone know if its possible to fix a mortgage for 4/5 years at current low % rates now even though we haven't managed to get a house as yet (we are 1st time buyers with a 15-20% deposit looking hourly/daily in NE area of London). We are more than willing to pay a fee/deposit up front to secure the mortgage at a good rate. Any advice would be really welcome.
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  • opinions4uopinions4u PPR
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    You will only be able to book funds when you've found a house.
  • CKhalvashiCKhalvashi Forumite
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    opinions4u wrote: »
    You will only be able to book funds when you've found a house.

    Seconded.

    You will, however, be able to get the maximum the bank is willing to look at lending, directly from the bank.

    CK
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  • The scheme ends beginning of January so rates should start creeping up then (hopefully savings rates as well :)). However you have to put that against buying at possible top of London price bubble.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

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  • Yorkie1Yorkie1 Forumite
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    brit1234 wrote: »
    The scheme ends beginning of January so rates should start creeping up then (hopefully savings rates as well :)). However you have to put that against buying at possible top of London price bubble.

    OP, you need to bear in mind when assessing what to do, that brit1234 has been waiting for years for a house price crash which he has regularly predicted but has come to nothing ...
  • CKhalvashiCKhalvashi Forumite
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    Yorkie1 wrote: »
    OP, you need to bear in mind when assessing what to do, that brit1234 has been waiting for years for a house price crash which he has regularly predicted but has come to nothing ...

    I bought in early 2007, and my house is worth about £150k more than we paid for it (£600k-ish), so don't worry.

    My old house (W3) is back on the market for £900k, and we sold that for £650k.
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  • brit1234 wrote: »
    The scheme ends beginning of January so rates should start creeping up then (hopefully savings rates as well :)). However you have to put that against buying at possible top of London price bubble.


    Are you still predicting that house prices will crash 50% by Christmas?


    How is your "Buyers strike" faring out?
  • kingstreetkingstreet Forumite
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    Rates for new mortgages were not a lot higher before FLS was introduced, but a degree of hardening is inevitable around the second quarter of next year.

    HSBC has never used FLS as far as I can remember, so it may reassert its dominance of the rate market again.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ThrugelmirThrugelmir Forumite
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    CKhalvashi wrote: »
    I bought in early 2007, and my house is worth about £150k more than we paid for it (£600k-ish), so don't worry.

    My old house (W3) is back on the market for £900k, and we sold that for £650k.

    Bought our current house in the frothy market of 2007. Certainly wouldn't sell it for we paid for it. Nor recover the amount we've spent on personalising the house and garden.
  • I expect the wholesale funding markets are working quite well enough for FLS to be withdrawn and little impact be felt.

    Some of the smaller BS will struggle to have competitive rates but that will be the worst.
  • kingstreetkingstreet Forumite
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    Did any small BS use FLS?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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