MSE News: What's happening to mortgage rates following the mini-budget reversal – MSE's analysis 18 October 2022 at 5:33PM in Mortgages & endowments 32 replies 3.3K views

housebuyer143

Ksw3 said:

@kingstreet what does semi-exclusive mean in this context?

They are normally aimed at brokers I believe.. Can't always get them direct?

kingstreet

I posted these to indicate there may be some downward movement in new product rates rather than to advertise Barclays or its products.

Lewis7498

superstylin said:

Good news that the first bank has reacted to the calming market. 

I'll be watching over the next few weeks to see if it's worth ditching the 5.14% 5 yr fix I recently set up with HSBC (existing customer). It's currently on hold until April so I've got time to see how other banks follow. 

@superstylin Can I just ask do you know if a hard search is carried out when you apply for the mortgage to get an offer but don’t follow through with it? Have just reserved with HSBC too and valuer coming out Monday but I’m worried it’s going too far when I might not even use the offer yet?!

Mortgage is up Apr 23

K_S

Hope I'm not jumping the gun here but I can report than over the last couple of days, I have had broker notifications from multiple lenders (mostly smaller or off high-street ones) announcing new products, slight lower rates, products with reduced fees (eg: £999 reduced to £499), increased breadth of products, etc.

Based on that tiny bit of evidence, there does seem to be a slight downward movement in mortgage costs.

superstylin

Hi @Lewis7498

I'm afraid I can't answer that one for you. The mortgage advisor told me that a credit search was being made when the offer was being considered but no search has appeared on my credit report as yet (either soft search or hard). I don't know if my situation is different though because I got the offer through my current provider and it might be they do not require a full search because of my history with them. 

I also didn't require an in person valuation, they used a digital valuation so I don't know if this has consequences for your ability to pull away from the offer. 

Have you paid any fees yet? The advisor indicated that if fees were paid then it's more difficult to leave the offer without penalty. My offer is fee free. 

K_S

Coventry is reducing rates on some low LTV (50 - 75%) 5yr fix products from Wednesday. It's across resi, purchase, remo and BTL.

mi-key

K_S said:

Coventry is reducing rates on some low LTV (50 - 75%) 5yr fix products from Wednesday. It's across resi, purchase, remo and BTL.

I think a lot may follow suit now, perhaps thinking that the next interest rate increase may not be as high as predicted? 

K_S

mi-key said:

K_S said:

Coventry is reducing rates on some low LTV (50 - 75%) 5yr fix products from Wednesday. It's across resi, purchase, remo and BTL.

I think a lot may follow suit now, perhaps thinking that the next interest rate increase may not be as high as predicted? 

@mi-key I'm not an expert on this by any stretch of imagination but perhaps it's something to do with lower swap rates and (perhaps more importantly) a much less volatile near/medium term outlook, compared to a few weeks ago. This helps give lenders some confidence to price products.

HSBC also reducing some tracker and low LTV fixed rates from tomorrow.

kingstreet

Accord rate reductions from tomorrow;-

What’s changing?

• 75% LTV product rates reducing by up to 0.35%
• 85% LTV product rates reducing by up to 0.35%
• 90% LTV product rates reducing by up to 0.53%
• 95% LTV product rates reducing by up to 0.52%
• Help-to-buy product rates reduced by up to 0.10%
• Fees on selected products reduced by £500 to £495
• Introduction of a ten-year fixed rate product

mi-key

This is all positive, not huge moves, but going in the right direction at least