Is it too late?

Habbo

Is it too late to try and remortgage with a new lender?

I'm with Accord and they only let you switch 90 days before expiry which would put me in mid-November. By that time the rates will seemingly go up again although that already seems to be factored in to all the products.

Is it worth engaging a broker to try and get some sort of better deal than Accord would offer then? I'm not really sure what could be done as everything seems to be 4.5% minimum on a 2 year fix.

My situation is good. No credit cards, debts, or loans. No adverse.

LTV of 35%, under 150k left to pay off.

Should I wait until mid-November and stick with whatever Accord offer or try and get an AIP sorted between now and then?

Maka344

I saw on another forum that Accord are allowing some customers to extend their current fix rate deals and keeping them at the same %. I don't know what the criteria is for this, worth calling and checking. 

penners324

When is the fix rate up?

I always found Accord had retention rates as good as anything else on the market with the hassle of remortgage 

Habbo

The fix is up in Mid Feb. Their site says 90 days which would mean the earliest I can switch is mid November. If I was somehow able to get a blinding deal I would pay the ERC, but that's unlikely.

I'm currently on 1.92%, higher rates won't kill me but if It's possible to save the money I'd like to try.

Habbo

penners324 said:

When is the fix rate up?

I always found Accord had retention rates as good as anything else on the market with the hassle of remortgage 

Those retention rates would supposedly be at standard market rate for the time, which looks like it will be +5%.

Is it true some lenders won't lend to you if under 50% LTV?

K_S

Habbo said:

Is it too late to try and remortgage with a new lender?

I'm with Accord and they only let you switch 90 days before expiry which would put me in mid-November. By that time the rates will seemingly go up again although that already seems to be factored in to all the products.

Is it worth engaging a broker to try and get some sort of better deal than Accord would offer then? I'm not really sure what could be done as everything seems to be 4.5% minimum on a 2 year fix.

My situation is good. No credit cards, debts, or loans. No adverse.

LTV of 35%, under 150k left to pay off.

Should I wait until mid-November and stick with whatever Accord offer or try and get an AIP sorted between now and then?

@habbo This is more for the benefit of others that come across this thread - with a fix ending in mid-Feb (are you sure about that? Accord fixed-rate products usually end on the last day of the month) you could have 'secured' a rate with most mainstream lenders back in mid/late August or even a couple of month before that with a few lenders.

You still have almost 6 weeks to go to mid-Nov so if you think rates may go up between now and then, then you can always protect yourself by applying for a remortgage offer from another lender. When Accord offers you a product-switch in mid-Nov, you can compare it to what you have in hand and then decide what to do.

To get an idea of what kind of rates Accord is offering to current borrowers, you can see them using this tool https://www.accordmortgages.com/products/existing-customers#productFeatures

Habbo

K_S said:

@habbo This is more for the benefit of others that come across this thread - with a fix ending in mid-Feb (are you sure about that? Accord fixed-rate products usually end on the last day of the month) you could have 'secured' a rate with most mainstream lenders back in mid/late August or even a couple of month before that with a few lenders.

Thank you for pointing that out. For some reason I was going by my completion date. Looking through my last statement it says 1.93% fixed rate until 31/05/23 I'm not sure why this wouldn't be end of Feb like you said?

I have been kicking myself for not paying attention to all the signs of rocketing rates. I could have easily payed the ERC and remortgaged. Another harsh life lesson to learn from I suppose.

Accords cheapest fix looks to be 5.74% with a £1500 fee. I think I would rather go on a discount SVR then that.

I do wonder though, what's to stop a lender whacking their SVR up to 20% even if it's out of line with everyone else? Say they didn't actually want to lend more money out and decided to screw those already on the books. There's no mechanism in place to stop or limit it is there?

K_S

Habbo said:

K_S said:

@habbo This is more for the benefit of others that come across this thread - with a fix ending in mid-Feb (are you sure about that? Accord fixed-rate products usually end on the last day of the month) you could have 'secured' a rate with most mainstream lenders back in mid/late August or even a couple of month before that with a few lenders.

Thank you for pointing that out. For some reason I was going by my completion date. Looking through my last statement it says 1.93% fixed rate until 31/05/23 I'm not sure why this wouldn't be end of Feb like you said?

I have been kicking myself for not paying attention to all the signs of rocketing rates. I could have easily payed the ERC and remortgaged. Another harsh life lesson to learn from I suppose.

Accords cheapest fix looks to be 5.74% with a £1500 fee. I think I would rather go on a discount SVR then that.

I do wonder though, what's to stop a lender whacking their SVR up to 20% even if it's out of line with everyone else? Say they didn't actually want to lend more money out and decided to screw those already on the books. There's no mechanism in place to stop or limit it is there?

@habbo I should have said last day of a month rather than the month With Accord it's not an exact 24/60 months from completion, so it looks like your current fix ends on 31/05/2023.

In theory they can increase/decrease their SVR as they wish, but as an active lender, if they did that in an unreasonable manner or out of step with the competition, then they would suffer reputational damage and it would hit their business as brokers like me would simply not be able to recommend them to clients.

penners324

It'll be the end of Feb before you get access to Accords retention deals.

End of November 22 when most lenders will let you fix to complete on 1st June

simon_or

If 5% and over fixed rates aren't for you then you could look at discount or tracker rates.