New Mortgage just as rates have went up

Carfixer93

Good morning all,

We are n the process of buying our new build home just as the volatility has started, my partners credit has made it hard to find a suitable mortgage before all this but eventually found a lender and deal we where happy with. Since the start of the war rates have obviously shot up and while i personally expect them to come down before we actually finalise the rate in august we need to be happy with the cost now in case it dosn't. Does anyone have any thoughts on the rates coming down after the announcement on Thursday (march 19th), I think the banks are scared and don't want to be burned but when interest rate is confirmed stable the current spike and removal of products from the market may settle?

la531983

What announcement?

If you are talking about the monthly BoE interest rate announcement, banks price things into available rates months in advance as they generally know what the decisions are likely to be, and wont cut/increase them based on announcements, also rates available arent just linked available to the base rate.

ACG

Inflation is going to go up, that normally leads central banks to increase rates.

I've no idea what will happen. I have watched enough mortgage brokers and economists to realise nobody has a clue.

Rates have not really shot up. I do a monthly take of 90% rates for clean credit and 85% for adverse. The

Normal rate mortgages at 90% have only gone up by around 0.15% in the last 20 days. They are back to where they were in September/October last year.

Adverse at 85% have gone up a little more. 0.25% to 0.5% which puts them back where they were around 12 months ago.

When I did the research yesterday I honestly expected to see a much bigger jump considering everything in the news. I think they have affected the lower LTVs more than higher.

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/81926403#Comment_81926403

I'm surprised you have not seen bigger rate increases.

We secured a rate of 4.04% in January with the Halifax for our upcoming purchase and the same 5 year no fee product today is at 4.64% so quite the hike in rate!

ACG

Im beginning to think my monthly checks are maybe not quite as thorough as I thought…

They were only a brief overview that I started doing after the Russia/Ukraine war. But it seems that lower LTVs are going up by more than higher LTVs and products without fees are too. I basically did 4 products:

2 year 90%

5 year 90%,

2 year 85% adverse and

5 year 85% adverse

All with a circa £999 fee.

For the non adverse products, it seems reasonably steady but having spoken to one of my colleagues earlier, it seems there are a few exceptions which might mean I need to look at how I do it going forward.

Its hard to cover so many eventualities without it becoming an actual job in itself.

feynman33

I was looking at 3.8% from Nationwide before all this, it's now 4.5%. That'll cost me 1.5K over a 2 year fix. I can look at other lenders, but feels like a big jump to me!

ACG

https://forums.moneysavingexpert.com/discussion/comment/81927171#Comment_81927171

I would agree.

As mentioned above, it seems the monthly checks I have been doing has flaws in it.