Should I wait to accept mortgage offer?

TheJP

Have you considered a tracker rate? Yorkshire bank offering 0.29% above BOE rate currently 3.29%, if the BOE increases to 4.5 some time next year that's 4.79%, if you were to save the deficit against your current offer it would help navigate if the rate increased to 5% which would still be lower than your current offer.

superstylin

TheJP said:

Have you considered a tracker rate? Yorkshire bank offering 0.29% above BOE rate currently 3.29%, if the BOE increases to 4.5 some time next year that's 4.79%, if you were to save the deficit against your current offer it would help navigate if the rate increased to 5% which would still be lower than your current offer.

This is the one I'm considering. Would never have entertained a tracker before but it just makes sense if the BOE interest rate is widely expected to top out at 4.5%. I believe the Yorkshire Bank has no fees either though has a small ERC. 1%? 

TheJP

superstylin said:

TheJP said:

Have you considered a tracker rate? Yorkshire bank offering 0.29% above BOE rate currently 3.29%, if the BOE increases to 4.5 some time next year that's 4.79%, if you were to save the deficit against your current offer it would help navigate if the rate increased to 5% which would still be lower than your current offer.

This is the one I'm considering. Would never have entertained a tracker before but it just makes sense if the BOE interest rate is widely expected to top out at 4.5%. I believe the Yorkshire Bank has no fees either though has a small ERC. 1%? 

It is 2 year so unlikely that you would move before it ends. Even if the BOE hits 5.5% you aren't that worse off than the long term fixed rate but at least you can enjoy the savings beforehand to help deal with a potential increase.

superstylin

TheJP said:

superstylin said:

TheJP said:

Have you considered a tracker rate? Yorkshire bank offering 0.29% above BOE rate currently 3.29%, if the BOE increases to 4.5 some time next year that's 4.79%, if you were to save the deficit against your current offer it would help navigate if the rate increased to 5% which would still be lower than your current offer.

This is the one I'm considering. Would never have entertained a tracker before but it just makes sense if the BOE interest rate is widely expected to top out at 4.5%. I believe the Yorkshire Bank has no fees either though has a small ERC. 1%? 

It is 2 year so unlikely that you would move before it ends. Even if the BOE hits 5.5% you aren't that worse off than the long term fixed rate but at least you can enjoy the savings beforehand to help deal with a potential increase.

Having said that, I've just seen my current bank HSBC has reduced their 5 yr fee saver fix from 5.14% (which I've already secured) to 4.69%. The difference is now a bit of a head scratcher. Might not be worth the uncertainty of a tracker. 

superstylin

Troy_af said:

superstylin said:

@Troy_af

No new applications or deeds need be signed as you're not changing loan amount or term, and your circumstances haven't changed. It's simply a recalculation. There are plenty of people on here who have done it.

My broker has told me that there is a risk because the original offer was referred and it will need to be re scored.

I do not understand what the risk is as my finances have not changed whatsoever and if the rates have dropped then it doesn't take a rocket scientist to calculate that my affordability if anything has INCREASED as a result not decreased.

Thanks for any help. 

I can't see where the risk is either. Nothing in your finances has changed, the interest rate has gone down so is more affordable and financial conditions generally are more stable. Maybe your broker is just trying to save himself some work.