Fixed rate coming to end

CSL0183

aylithuk said:

It is very challenging to know what to do. If you don’t want to roll the dice here pay the ERC and lock in the deal now and let the worry flow away. Worse case you end up being bitter if everything balances/settles and you are ‘out of pocket’ 

I am rolling the dice because my ERC is £1.7k right now and if my mortgage rate went to 8% it would be £300 more a month. I am currently on 1.64% and my investments and savings are returning more than that. 

So what ever happen come October 2023 I’ll have enough via savings to pay an 8% mortgage rate for two years fixed whilst earning hopefully 4-6% interest (compounding) in the meantime. 

Or I might look at an offset mortgage. 

What I am saying here is there is always lots of options and don’t make a snap judgement based on the news, Liz wanting to stamp her authority and people on a Internet forum with so many different circumstances to your own 🙂🙂

Your ERC would be paid back within 6 months though and you wouldn’t need to touch your savings or investments?

Your ERC is relatively low and can be soaked up in the interest rate savings. You’re then gambling with a 2yr that this mess will have resolved itself. 

Perhaps we will never see sub 2% BOE BR again, the last decade or so has been a statistical anomaly. 

However, as you quite rightly put, we all see it different ways. 

N_Pars

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

froomer

N_Pars said:

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

Good news, I completed our second appoint with Lloyds last night. Our rate is now locked-in until 28th Feb 2022. So I will continue with our current mortage until that time. Also, the advantage is that if (big if) the rates drop, you can change your mind. At least you will have that security blanket for a few months  

N_Pars

froomer said:

N_Pars said:

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

Good news, I completed our second appoint with Lloyds last night. Our rate is now locked-in until 28th Feb 2022. So I will continue with our current mortage until that time. Also, the advantage is that if (big if) the rates drop, you can change your mind. At least you will have that security blanket for a few months  

That's great. It will definitely give me peace of mind if we can secure something with lloyds. 

Am I right in saying, if we can secure something with lloyds now, we can just continue with our current mortgage until close to the end (28th February) and then accept lloyds offer closer to the time to avoid paying any fees?

Just so I know I've got it right! 

K_S

N_Pars said:

froomer said:

N_Pars said:

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

Good news, I completed our second appoint with Lloyds last night. Our rate is now locked-in until 28th Feb 2022. So I will continue with our current mortage until that time. Also, the advantage is that if (big if) the rates drop, you can change your mind. At least you will have that security blanket for a few months  

That's great. It will definitely give me peace of mind if we can secure something with lloyds. 

Am I right in saying, if we can secure something with lloyds now, we can just continue with our current mortgage until close to the end (28th February) and then accept lloyds offer closer to the time to avoid paying any fees?

Just so I know I've got it right! 

@n_pars That's right, you simply set a completion-date that is no later than 28 Feb. Assuming you're using the lender free legals (Optime most likely), the conveyancer will liaise with you for a completion date. 

I don't think there are any fees are there? No product fee (and even if there were you'd just add it to the loan to avoid risking it), no valuation fee and free legals.

froomer

N_Pars said:

froomer said:

N_Pars said:

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

Good news, I completed our second appoint with Lloyds last night. Our rate is now locked-in until 28th Feb 2022. So I will continue with our current mortage until that time. Also, the advantage is that if (big if) the rates drop, you can change your mind. At least you will have that security blanket for a few months  

That's great. It will definitely give me peace of mind if we can secure something with lloyds. 

Am I right in saying, if we can secure something with lloyds now, we can just continue with our current mortgage until close to the end (28th February) and then accept lloyds offer closer to the time to avoid paying any fees?

Just so I know I've got it right! 

Yes, unless your financial situation changes between now and the 28th Feb, they have to honour the rate

peacheymarine

I would secure a written mortgage offer right away. You can always apply for another mortgage offer if a better rate became available.

N_Pars

K_S said:

N_Pars said:

froomer said:

N_Pars said:

I got two agreement in principle last night with natwest and lloyds. Both around 3.8%. We have a phone appointment booked with lloyds this evening. Hoping we can secure the rate and then wait a couple months and see what happens plus see what hsbc offer in November. I'm thinking this is the best option for us for now.

We have decreasing life cover with HSBC also, does anyone know what would happen with this if we were to switch?

Sorry for all the questions, we've only had our mortgage fixed for 5 years so not much experience. 

Good news, I completed our second appoint with Lloyds last night. Our rate is now locked-in until 28th Feb 2022. So I will continue with our current mortage until that time. Also, the advantage is that if (big if) the rates drop, you can change your mind. At least you will have that security blanket for a few months  

That's great. It will definitely give me peace of mind if we can secure something with lloyds. 

Am I right in saying, if we can secure something with lloyds now, we can just continue with our current mortgage until close to the end (28th February) and then accept lloyds offer closer to the time to avoid paying any fees?

Just so I know I've got it right! 

@n_pars That's right, you simply set a completion-date that is no later than 28 Feb. Assuming you're using the lender free legals (Optime most likely), the conveyancer will liaise with you for a completion date. 

I don't think there are any fees are there? No product fee (and even if there were you'd just add it to the loan to avoid risking it), no valuation fee and free legals.

No upfront fees which is nice! We had set aside money for an arrangement fee but the deal we are looking at doesn't have one. 

N_Pars

Thanks so much for all the advice!

Hopefully our telephone appointment this evening is the start of us securing a deal with lloyds. 

sammyjammy

nozzla said:

We're a similar position.  Fixed deal runs out in February, but can't change until end of November without incurring an early fee, which is £2,500.  I think potentially paying the fee could be a good idea, given that interest rates could go to 6%, which would mean an increase on our monthly payments of at least £200.  So over 2 years at least, it's cheaper to pay the fee.  Thoughts please?

Just to check, its likely although you can secure a new deal with your provider in November you would continue on your existing rate until February and if you moved elsewhere before Feb would still have to pay the ERC.