Mortgage broker - ask me anything

K_S

GoonerByron said:

Hi, have a query on Fixed vs Variable mortgages. I have always stuck to 2 year fix deals previously but am now tempted to take the risk on a discounted variable. Furness have offered me a starting 1.64% after the BoE 0.5 rise (They only applied a 0.2 increase on their own rate).. The best fix I can get is 3.15% and means an extra £200 a month on the fixed so it's a considerable difference and as far as I understand it the BoE rate would likely need to rise by at least another 1.5% in the next 2 years before I am worse off monthly, if not more...

Am I looking at this in the right way and is there anything obvious I'm missing? 

@gonnerbyron As long as you are happy with the following risks, your logic looks sound -
- your rate not being linked to the BoE rate
- significantly higher mortgage rates in 2024
- having to pay an ERC if you decide to remortgage before the end of the discount period

K_S

redefinr said:

This thread is ace! so many gems...

I'm relatively new to mortgages (bought my first property almost 2 years ago) with Variable Rate.

Due to the current situation and with news that keep saying interest rate's about to skyrocket I'm pondering if I should switch to a Fixed. I called my lender (HSBC) and they offered me a  Fixed Rate of 3.44% for 5 years followed by the Standard Variable Rate (currently 4.54%) for the remaining of the loan. Obviously, 4.54% is a total ripoff for me and I was wondering if I can re-negotiate my mortgage after the 5 years fixed ends?

Is it risky for me to stay on a variable?

Thanks!!

@redefinr At the end of 5 years, there's nothing stopping you from re-mortgaging (changing lenders) or doing a product-transfer (staying with HSBC) to a new fix. 

The SVR only applies if you did nothing at all.

purplelila-2007

@K_S How long does it usually take for Nationwide to upload the mortgage offer on the lender exchange after the mortgage is issued? 

GoonerByron

K_S said:

GoonerByron said:

Hi, have a query on Fixed vs Variable mortgages. I have always stuck to 2 year fix deals previously but am now tempted to take the risk on a discounted variable. Furness have offered me a starting 1.64% after the BoE 0.5 rise (They only applied a 0.2 increase on their own rate).. The best fix I can get is 3.15% and means an extra £200 a month on the fixed so it's a considerable difference and as far as I understand it the BoE rate would likely need to rise by at least another 1.5% in the next 2 years before I am worse off monthly, if not more...

Am I looking at this in the right way and is there anything obvious I'm missing? 

@gonnerbyron As long as you are happy with the following risks, your logic looks sound -
- your rate not being linked to the BoE rate
- significantly higher mortgage rates in 2024
- having to pay an ERC if you decide to remortgage before the end of the discount period

Thanks.. It will actually be 2025 by time I am remortgaging again, as I’m doing this around 5 months in advance. Do we think significantly higher mortgage rates are a guarantee? No chance rates start to come back down again by 2024/25?

Stevo9090

Hi,

I'm being gifted £5k towards my deposit by my mother and she's not keen at all on handing over 6 months of personal bank statements to a conveyancer

One option given to me by a conveyancer was:
We can accept a letter from a Chartered or Certified Accountant that they can vouch for the legitimacy of the funds under the Money Laundering Regulations 2017 and Proceeds of Crime Act 2002 as amended, and letter explaining the source from which the sums have been accumulated

Is this process as simple as it sounds? I'm assuming the accountant wouldn't need to keep copies of her statements

Thanks

ASB1960

I am 62 looking to remortgage.

I receive income via payroll from a group income protection scheme until 67. Claim started 2016. Also get car allowance, pip, support group contribution based esa and an annuity.

I am looking to remortgage because my interest only term expires in 2 years. Ideally I would probably look for a RIO.

Any knowledge on lenders who will accept the payment, either as income or as pension.

Does equality act possibly apply as a reasonable adjustment?

Squibble

Hi,

I have a BTL mortgage with BM - looking to see if can get a further advance from them to release some equity rather than re-mortgage as in a fixed period and will have a hefty ERC to pay. What will I be required to provide? thanks

jimbo83

Hi 

We are coming to end of our fixed rate and have been offered very similar rates for 5 year and 10 year fixed.

The 5 year fixed is slightly below 3.5% and the 10 year slightly above. Our current rate is circa 2%. 

What would you advice be around which term to go for? 

Ordinarily we would fix for 5 years but how do you view the 10 year fixed given where we are economically at the moment?

Thanks 

Nikster73

I'm looking for some advice please.  I've had an offer from Natwest - 5 year fixed deal at 3.22% .  We will be hoping to move house within 5 years.  Am I better taking a 2 year fixed deal? And can the offer be simply changed over from a 5 year to a 2 year, without any complications? 

Thanks 

K_S

GoonerByron said:

K_S said:

GoonerByron said:

Hi, have a query on Fixed vs Variable mortgages. I have always stuck to 2 year fix deals previously but am now tempted to take the risk on a discounted variable. Furness have offered me a starting 1.64% after the BoE 0.5 rise (They only applied a 0.2 increase on their own rate).. The best fix I can get is 3.15% and means an extra £200 a month on the fixed so it's a considerable difference and as far as I understand it the BoE rate would likely need to rise by at least another 1.5% in the next 2 years before I am worse off monthly, if not more...

Am I looking at this in the right way and is there anything obvious I'm missing? 

@gonnerbyron As long as you are happy with the following risks, your logic looks sound -
- your rate not being linked to the BoE rate
- significantly higher mortgage rates in 2024
- having to pay an ERC if you decide to remortgage before the end of the discount period

Thanks.. It will actually be 2025 by time I am remortgaging again, as I’m doing this around 5 months in advance. Do we think significantly higher mortgage rates are a guarantee? No chance rates start to come back down again by 2024/25?

@goonerbyron Your guess about future mortgage rates is as good as mine tbh I just mentioned it as a risk when it comes to re-mortgaging in 2025, not that I expected it to be higher then than it is now.