Market volatility - any thoughts on what I should do?

Parisian

My current mortgage deal at 1.89% with TSB is coming to an end next week, and I have applied to remortgage with Accord on a 2 year fix offset product 5.27%
I've been tracking all the offset products available on the market across all lenders who have offset mortgages since October, and the rates have generally been falling. In particular with Accord, some products have been replaced by cheaper products after only a few weeks - there have been about 3 rate changes since November (5.86%, 5.33%, 5.27% if I remember correctly).

YBS which is a direct only lender (who underwrite Accord whose products are only available via a mortgage broker) have an equivalent product which is basically the same. I had been tracking it this whole time, and it was sitting at 5.87% for a couple of months (stayed the same all the while when Accord offset products were dropping in rate), and then suddenly last week there was a massive drop in the rate of the YBS offset mortgage from 5.87% down to 4.87%.

A 0.4% difference between the Accord product and the YBS product is a significant amount! They are essentially the same product (end date, features etc as both underwritten by YBS).

What would you do? I am due to remortgage to Accord next week, and am in the final stages of all the legal parts. If Accord happen to drop their rate again now, I'm not sure if I could change product this close to the remortgage date - could I? Could I try to move to YBS? With all this market volatility, it's hard to watch the rate drop elsewhere and not know whether I should intervene or accept the 5.27%. I don't have the most active mortgage broker, and he has given me some poor advice so far sadly.

Any thoughts gratefully received!

housebuyer143

Have you checked the accord rates as they changed lots of them a few days ago. 

If you switch now you may find yourself liable for the remortgage costs so you would have to factor that in potentially. 

What does your rate go to if you drop out and start again? You are probably going to be paying SVR for a bit which will cost you a lot.

Parisian

Thank you, housebuyer143

Yes, Accord dropped their rate on my product on 11th January from 5.33% to 5.27%. They seem to be dropping every couple of weeks, and so I am thinking they might drop again possibly before the next BOE announcement on 2nd February. I'm thinking this because the equivalent product in the YBS range (same features etc, and YBS underwrite Accord) last week dropped from 5.87% (where it sat for a couple of months) down to 4.87%

My TSB rate at 1.89% reverts to SVR at 6.99% next week. 

I'm just worried that I'm going to miss out on a massive rate drop in my current Accord product! I had my completion statement from the solicitor today for completion next week, and I wish I had another week to see if Accord drops their rates again. 

housebuyer143

Parisian said:

Thank you, housebuyer143

Yes, Accord dropped their rate on my product on 11th January from 5.33% to 5.27%. They seem to be dropping every couple of weeks, and so I am thinking they might drop again possibly before the next BOE announcement on 2nd February. I'm thinking this because the equivalent product in the YBS range (same features etc, and YBS underwrite Accord) last week dropped from 5.87% (where it sat for a couple of months) down to 4.87%

My TSB rate at 1.89% reverts to SVR at 6.99% next week. 

I'm just worried that I'm going to miss out on a massive rate drop in my current Accord product! I had my completion statement from the solicitor today for completion next week, and I wish I had another week to see if Accord drops their rates again. 

I would be surprised if they drop them next week tbh. They are a little more stable at the moment and not changing them that frequently from what I have seen.

I would be inclined to go to YBS rather than wait for a few percentage points decrease with accord. 
Or complete on the price you have. 

MFWannabe

Out of interest why are you moving from TSB? What are their rates for new fixes /trackers? 

Parisian

housebuyer143, Accord did indeed drop their rates this week - my product went down by a small amount from 5.27% to 5.20% - they seem to dropping them by varying amounts about every 2 weeks or so - not sure why you have seen something different. It's been 5.88%, 5.33%, 5.27% and 5.20% since the beginning of December.