Mortgage broker - ask me anything

sanaubair

Mortgage broker

etherealho

etherealho said:

Hi,
I have a question that would involve looking in the crystal ball I am on a 1.38% mortgage fix expiring on 31st March 2023 with Halifax. LTV is 55% I am getting an offer from Halifax for early product transfer for 2 year fix at 4.72%

Taking into consideration the ERC and the 5 months of lower repayment I would lose, the overall amount I pay by fixing now would be lower if I wait till Jan and do a product transfer. I have assumed 2 year fix rate in Jan to be 5.5% or 6%

Are these correct assumptions or I am better of holding for now and deciding in Jan?


 

@k_s
bumping up for you.

sanaubair

Lender is natwest

K_S

etherealho said:

Hi,
I have a question that would involve looking in the crystal ball I am on a 1.38% mortgage fix expiring on 31st March 2023 with Halifax. LTV is 55% I am getting an offer from Halifax for early product transfer for 2 year fix at 4.72%

Taking into consideration the ERC and the 5 months of lower repayment I would lose, the overall amount I pay by fixing now would be lower if I wait till Jan and do a product transfer. I have assumed 2 year fix rate in Jan to be 5.5% or 6%

Are these correct assumptions or I am better of holding for now and deciding in Jan?

@etherealho You won't be surprised to hear that I don't really have an opinion!   My thoughts about the direction of mortgage rates is no more valid that the next person's. 10 months ago, I didn't predict that rates would be where they are now and I've no idea where they'll be in a few weeks, let alone a few months.

A 2yr fix at 4.72% sounds very competitive. Halifax was offering a sub 4% 3yr fix rate to some borrowers a week ago, did you not get offered that switch rate? 

There are very small signs of mortgage rates softening https://forums.moneysavingexpert.com/discussion/6395742/mse-news-whats-happening-to-mortgage-rates-following-the-mini-budget-reversal-mses-analysis#latest but that's just at this point in time, who knows what is going to happen over the next few weeks/months in politics, the bond market, BOE rate, swap rates, etc.

I would suggest taking a decision based on your personal circumstances, attitude and desire for certainty.

Big_Rock

Quick Question :

I have a LTD company, I have set up last year never traded, have applied for a mortgage ... not using that in anyway but can that cause any issues? Lender is NatWest

Account dates in not reached so not sure if I can submit dormant account buts its dormant and never traded

thanks in advance! 

K_S

Big_Rock said:

Quick Question :

I have a LTD company, I have set up last year never traded, have applied for a mortgage ... not using that in anyway but can that cause any issues? Lender is NatWest

Account dates in not reached so not sure if I can submit dormant account buts its dormant and never traded

thanks in advance! 

@big_rock Should not be an issue. If it's a nit-picking underwriter that looks you up on CH and spots it they may ask but your explanation of it being dormant with no plans to trade should satisfy them as long as there isn't anything else in your circumstances to suggest otherwise.

Big_Rock

K_S said:

Big_Rock said:

Quick Question :

I have a LTD company, I have set up last year never traded, have applied for a mortgage ... not using that in anyway but can that cause any issues? Lender is NatWest

Account dates in not reached so not sure if I can submit dormant account buts its dormant and never traded

thanks in advance! 

@big_rock Should not be an issue. If it's a nit-picking underwriter that looks you up on CH and spots it they may ask but your explanation of it being dormant with no plans to trade should satisfy them as long as there isn't anything else in your circumstances to suggest otherwise.

Thankyou , there is nothing else in closet 😂 

MasterplanC

kingstreet said:

DD details and payment date are entered at application stage. After completion, the lender will confirm payment amounts and dates.

That's helpful, thank you. So if I requested a payment on the 1st of the month and we are completing on the 28th, is it likely they will take the payment on the coming 1st? I guess otherwise it would accrue extra interest or limit our overpayments (if we wanted to actually make that payment on the 1st). Thank you!

MasterplanC

etherealho said:

Hi,
I have a question that would involve looking in the crystal ball I am on a 1.38% mortgage fix expiring on 31st March 2023 with Halifax. LTV is 55% I am getting an offer from Halifax for early product transfer for 2 year fix at 4.72%

Taking into consideration the ERC and the 5 months of lower repayment I would lose, the overall amount I pay by fixing now would be lower if I wait till Jan and do a product transfer. I have assumed 2 year fix rate in Jan to be 5.5% or 6%

Are these correct assumptions or I am better of holding for now and deciding in Jan?


 

Basic question, have you looked around the mortgage market beyond Halifax right now? I am wondering whether you could get another mortgage offer (with lower interests than in Jan) now that stays valid for a few months and allows you to avoid the ERC. 

buttonmoon

My BTL mortgage is due for renewal in Jul 2023.  If I was remortgaging today I think I would just under 65% ltv.  Rates have shot up so much that if I remortgage today then the mortgage payment would shoot up from £180 to £650 per month with my existing lender on I/O. The rent is currently £850. 

Im worried that either a) the rent won’t be sufficiently high to remortgage (I think first time around it had to be 145% (or 125%) of the mortgage stress tested at 5.5% so goodness knows what the stress test would be now) and I cannot put it up further. b) I also need to be mindful that my fixed rate on my residential mortgage (around 60/65% ltv) is up for renewal in July 2024 so I’m worried that if my BTL mortgage payment increases significantly then it will impact my ability to remortgage my home.   Income multiple for the my residential mortgage will be around x 2.5. 

My thoughts are that I should speak to my broker early next year as depending on how the market is I will need make a decision regarding to remortgage or put my BTL on the market. 

I’m not sure what I’m asking but it’s a minefield at the moment! Do you have any advice or tips?