RBS mortgage

gadget88

It says not eligible to switch. On October 1st I’m within six months of a 5 year deal ending does it update at midnight to get a new deal? With rates going as high as 5 or 6% you can understand why I need it sorted asap 

ACG

I dont know what time it changes, but usually they pull rates at 5-8pm in the evening, so I would not stay up as its unlikely to make any odds whether to you do it at 00.01am or 3pm. 

But yes, it will be 6 months, so nothing until 1st October as far as I am aware - no harm checking in though, as you say with rates going up you may get lucky. 

gadget88

Yes they told me if I lock in a new deal it starts April? Rather than right away. Not sure the deals will be good or if they would offer say ten year deals probably not?

gadget88

I moved here April 2018 but the app says July 2023 deal runs out so that means I may be unable to switch in October? 

ACG

Fixed rate deals are not normally dead on 24/36/60 months. They normally get released with maybe 27 months, if you complete on day 1, you get the full 27 months. If it takes 3 months, you get 24 months. 

It would have just had a fixed end date. So it sounds like it will be October. 

gadget88

I can’t renew until Feb 2023 they said. If I remortgage today it’s £400 vs £300 I pay today. If rates go to 6% I could pay £600 per month DOUBLE. I looked at a bigger house for £600 5 year deal but my wife never wanted to go ahead. I could get a bigger place now for less as my house is worth more than I paid. It’s worth 40 grand more plus my equity in the house. The market could fall and I could owe the bank money if I moved.

What do I do?

Sell up and move get a 5 year deal that way?
Remortgage by building an extension
Remortgage take 10k equity out can you do this and use it for a holiday? Can this lock me into a new deal early? 

Use savings and pay less a month in feb 2023?
Or just pay double £600 and be ripped off? Maybe take a 2 year deal in hope rates drop? Any advice please

gadget88

I can buy out my existing mortgage deal for £842. Mortgage payment is £313 any advice? 

gadget88

The new price would be £387

gadget88

No appointment until 25th October then ten days to apple new rate into November. Demanding £842 upfront and can’t pay up either. Rates expected it be 5.5% by November. So can’t win. I can renew by February for free without paying £800. By waiting to November for a new rate I am paying close to the projected 6%! Madness might cancel appointment. 

CSL0183

I know Halifax won’t let you switch your product unless you are in your last 3 months. Suspect RBS and Lloyds are the same. (Same group)

CSL0183

gadget88 said:

No appointment until 25th October then ten days to apple new rate into November. Demanding £842 upfront and can’t pay up either. Rates expected it be 5.5% by November. So can’t win. I can renew by February for free without paying £800. By waiting to November for a new rate I am paying close to the projected 6%! Madness might cancel appointment. 

Next BOE meeting is scheduled 3rd November (so unlikely rates will increase between now and then) 

You should make it in time. Pay the ERC and switch. Fingers crossed your lender doesn’t increase their rates between now and then though. 

I know with Halifax; they increased them immediately after the last BOE meeting so suspect RBS probably done the same. Therefore there shouldn’t be any further rises until BOE have their next meeting.