Remortgaging time

Interest rates - will they rise in 2012???

Got to sort it out this week.

Interest rates - will they rise in 2012???Got to sort it out this week.

Interest rates - will they rise in 2012???

 

Got to sort it out this week.

It's very unlikely that the BOE base rate will rise in 2012.

It depends how long you are going to fix for. If you want a 10, 15 or even 25 year fix then interest rates now or even next year will have little influence on the rate you get. If you just want a new two or three year deal interest rates would have to go up an awful lot for a fixed deal to work out cheaper than a tracker.

Was looking at a 3 year fixed at 3.19% versus an hSBC lifetime tracker at 2.89% (currently - which only saves about 30 quid a month)

I work closely with the business support teams at a number of high street banks. Their internal forecasts vary a little (obviousy), but none of the forecasts that I've seen have interest rates rising in 2012.

Hmm, I wonder if our mortgage advisor gets better commission if he sells us a fixed deal?

Was looking at a 3 year fixed at 3.19% versus an hSBC lifetime tracker at 2.89% (currently - which only saves about 30 quid a month)

HSBC offer a good deal on trackers so you are already in a pretty good place, although you could get it down to 2.5% if you only need 60% LTV. If you add in the fees for switching I'd be surprised if the 3 year fix at 3.19% was a good move.

Try moneysupermarket.com - all the deals without a biased advisor pushing you (be sure to scroll down past the 'sponsored' deals at the top of the list and sort them by lowest overall cost.

appreciate the tips, thanks guys.

Don't gamble in the property market.

The time is perfect to let your house, please trust me, I know what I am talking about.

I am no expert but have owned houses for over 28 years and have had every mortgage product under the sun; BTL, trackers, endowment (ouch, that hurt), repayment, Fixed rate, Variable, ISA, you name it I have had it. With one exception, namely 'Interest Only' (BTL).

If you can buy your own house off of yourself, right now, you have 25% equity and you are working, or even if you are on a half decent pension. NOW is the time to get an Interest Only Buy To Let mortgage.

You get to try out a new house with a new lifestyle thrown in free of charge, if you don't like it then see it as a 6 month holiday.

You'll not only have your mortgage paid, but on those figures I quote above, you will also be making a nice little profit; enough to cut your hours by about 20%. Try that dream job [sic] that you've been wondering about. Spend more time with the missus. Take a punt just don't leave it, those house prices are gonna start creeping up next year.

This is the time to see what it's like to semi-retire. 'Semi Retired' How nice does that sound.

Don't worry about the interest rates. They are all good at the moment. Not many BTL Interest Mortgages out there though.

I would be more than willing to PM you who the best lenders and the best Letting Agents are. Use a Letting Agent first time, You really do want to forget about the managing of it first time, just go away, forget all about the house and most importantly, have a think about what your going to spend that extra couple of hundred quid per month on. It's by no means a lotto win but it don't half change you outlook on life, imagine, I am giving myself a 25% pay rise, payable in hours in which to do whatever the hell I wish.

I can, and will, recommend to you the best conveyancer known to man. I am not on commission, but Carol Luckett, Google her name, is brilliant. Never had better and I've had a few.

My old man was a Building Society Manager for 30 years and the best bit of advise he ever gave me was to look at your mortgage as rent and not a debt. After 25 years of paying rent, you are then given the house rent free. Obviously you are liable for repairs ect, but generally I've always had a pretty relaxed attitude towards my Mortgage as I would have to pay rent somewhere if I didnt have this "debt".

please trust me, I know what I am talking about.

immediately followed by...

I am no expert

When it comes to renting your house out which is all very well and rents are doing very well ( I'm a landlord ), you still have to live/rent somewhere and rents have gone up across the board, unless you down size or move to a less desirable area.

Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVY of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because the the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome

Interest rates can't go any lower so I've gone for a fixed rate.

I know next to nothing about economics but I think they usually raise interest rates to combat inflation. Recently we've been printing money like crazy so if the economy picks up we will probably get serious inflation.

Having said that it is looking more and more like we are entering a recession/depression so god knows what will happen.

Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVY of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because the the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome

see a mortgage advisor and then compare against what you can get from others that always have to be booked through the bank, eg HSBC (not sure of others but I think includes Natwest)

Interest rates will not go up for the forseeable.

If you're risk averse, ignore the above statement, and get yourself on a medium term fixed - 3/5 years - pref 5, so that this sh*t can sort itself out.

If you want to take a risk, and play the game, it's tracker time.

Only you, and your partner, can decide which way to go.

If you want security, no matter what, expect to pay £x more per month, don't read the papers / listen to the news, and be safe in the knowledge that you did the right thing for YOU

at the time.

Don't know if that helps any...?

Don't gamble in the property market.

 

The time is perfect to let your house, please trust me, I know what I am talking about.

 

I am no expert but have owned houses for over 28 years and have had every mortgage product under the sun; BTL, trackers, endowment (ouch, that hurt), repayment, Fixed rate, Variable, ISA, you name it I have had it. With one exception, namely 'Interest Only' (BTL).

 

If you can buy your own house off of yourself, right now, you have 25% equity and you are working, or even if you are on a half decent pension. NOW is the time to get an Interest Only Buy To Let mortgage.

 

You get to try out a new house with a new lifestyle thrown in free of charge, if you don't like it then see it as a 6 month holiday.

 

You'll not only have your mortgage paid, but on those figures I quote above, you will also be making a nice little profit; enough to cut your hours by about 20%. Try that dream job [sic] that you've been wondering about. Spend more time with the missus. Take a punt just don't leave it, those house prices are gonna start creeping up next year.

 

This is the time to see what it's like to semi-retire. 'Semi Retired' How nice does that sound.

Seems like a strange idea, youd have a bit more cash to play with each month but youd still have a large mortgage hanging round your neck, and be paying just to rent so that debt wouldnt be decreasing.

Take a punt just don't leave it, those house prices are gonna start creeping up next year.

I think they will fall again, the house market is slow at the moment and there's bound to be another recession.

When prices rise it is usually at a rate far in excess of what you coould match by repayments, even with generous overpayments.Compare the difference between repyment and interest only products atm. The difference could be yours to spend. Wisdom is learnt from experience, every now and then the market works in your favour and imho right now is one of those times. Timing is key.

HSBC offer a good deal on trackers so you are already in a pretty good place, although you could get it down to 2.5% if you only need 60% LTV. If you add in the fees for switching I'd be surprised if the 3 year fix at 3.19% was a good move.

 

Try moneysupermarket.com - all the deals without a biased advisor pushing you (be sure to scroll down past the 'sponsored' deals at the top of the list and sort them by lowest overall cost.

All comparison sites are just adverts - as are best buy tables in the papers - so don't be fooled.

Fixed rates are at risk next year by the Eurozone probs pushing up the cost of borrowing for the lenders, so if you can look at longer term deals (e.g 3 or 5yr) now, then you could benefit WHEN rates start to rise.

15 years experience as an adviser tells me...you won't see cheaper fixed rates for a LONG time. Also, commission paid on deals is not higher on certain types.

HTH.

What I tried to do when my fixed rate ended was to go onto the SVR, continue to budget as if I was paying the fixed rate, and save the difference. The money saved can then be offset against interest rate rises in the future, whilst keeping one eye out ready to fix once rates start to go up. It looked good on paper, but in practise the £100 per month less that I pay Nationwide , has just been swallowed up by other bills and not saved.

If you're on SVR now and you're planning to fix in the future - don't wait.

The pricing for fixed rates is different to Trackers linked to the Bank of England base rate.

Woolwich are putting some of their fixed rates up tonight at midnight - they will be the first of many. Fixed rates will continue to rise as the Eurozone goes pop.

I had a spot of fortune (for once) with my remortgage a few years ago....switched to an HSBC "0.89% above base rate tracker" deal just before interest rates tumbled....my payments fell from c. £600 pcm to c. £150 pcm on a c. £120k mortgage.

There's a potential pitfall looming in that I've adjusted my cost of living accordingly, so would be somewhat stuffed if interest rates leapt up again, but I can't see that happening for at least a year or so.

I had a spot of fortune (for once) with my remortgage a few years ago....switched to an HSBC "0.89% above base rate tracker" deal just before interest rates tumbled....my payments fell from c. £600 pcm to c. £150 pcm on a c. £120k mortgage.

 

There's a potential pitfall looming in that I've adjusted my cost of living accordingly, so would be somewhat stuffed if interest rates leapt up again, but I can't see that happening for at least a year or so.

The thing you need to factor in is this - assuming a loan to value of less than 75%, you could get a 2yr Fixed Rate now of around 2.5%, a 3yr Fixed Rate around 2.9% and a 5yr Fixed around 3.5%.

Bank of England base rate does not affect these rates directly, however the money markets does. If the cost of borrowing increases as is now expected, fixed rates etc are only likely to rise higher...so the choice is to take the hit now, or later.

It's a gamble, no doubt - but fixed rates have NEVER been this low.

I now end this mortgage sermon.

The thing you need to factor in is this - assuming a loan to value of less than 75%, you could get a 2yr Fixed Rate now of around 2.5%, a 3yr Fixed Rate around 2.9% and a 5yr Fixed around 3.5%.

 

Bank of England base rate does not affect these rates directly, however the money markets does. If the cost of borrowing increases as is now expected, fixed rates etc are only likely to rise higher...so the choice is to take the hit now, or later.

 

It's a gamble, no doubt - but fixed rates have NEVER been this low.

 

I now end this mortgage sermon.

Who are those fixed rates with? Are they fee free?

Er... what's a mortgage?

Don't worry about the interest rates. They are all good at the moment. Not many BTL Interest Mortgages out there though.

 

I would be more than willing to PM you who the best lenders and the best Letting Agents are. Use a Letting Agent first time, You really do want to forget about the managing of it first time, just go away, forget all about the house and most importantly, have a think about what your going to spend that extra couple of hundred quid per month on. It's by no means a lotto win but it don't half change you outlook on life, imagine, I am giving myself a 25% pay rise, payable in hours in which to do whatever the hell I wish.

 

I can, and will, recommend to you the best conveyancer known to man. I am not on commission, but Carol Luckett, Google her name, is brilliant. Never had better and I've had a few.

Muh better than her out there i'm afraid. Cheaper too.

Who are those fixed rates with? Are they fee free?

This is a good deal if you want fixed. You can find lower headline interest rates, but with big fees attached. Basically it only makes sense to pay a £1,800 arrangement fee to benefit from a lower interest rate for two or three years if you have a huge mortgage. http://www.moneysupermarket.com/mortgages/details.aspx?productId=1017&selectedProductGroupType=3&enquiryid=3499780&passcode=73912434-ac9e-458c-a1ea-bf75a7b3b9b2

Its re mortgage time for me as well . Ive been on a 5 year fixed term with A and L at 5.09 which seemed a good deal at the time .. its now gone to the A and L SVR at 4.99 ..i was expecting ( wrongly) to go to the Santander SVR of 4.24 as they have bought A and L out during the term of my fixed rate.... so now lookng for a new deal . Ive contacted Santander and have been offered various deals but im sure there are far better out there ... a problem i have is that because of the crash there isnt hardly any equity in the house that i have so may be stuck with what i have ...any advice would be welcome

Im just adding to this for hopefully some further advice... my mortgage is £150000 and has always been payed in an interest only basis... the value of my property is now only approx £1700000 .. so I have LTV issues.