6.69% 5 year fix

[CPHB2021]

Hi all! I am so very confused and stressed. We have a shared ownership property and currently the lowest rate we've been offered is 6.69 for 5 years. We are absolutely gutted as we ideally would have moved before 5 years is up but now, if we dig this offer, it will be £15k ERC, which is not possible.

Would you go with this or go on to SVR in the hope things go down again soon?

Mortgage term expires in December.

Thank you!

That’s an awful rate. Don’t rush to accept it, see if you can find something better. If you can’t it’s scandalous the way the shared ownership scheme is shafting people.

Have you tried Leeds Building Society?

Im also SO and that’s who my mortgage is with.

SO has its down sides, but we have a joint income of £2800pm and the lowest rent for a 3 bed in my town is £1500pm and every letting agent has a waiting list for family homes. The lowest price house to buy is £275000 for an house that needs A LOT of work. Our mortgage is £550 and rent is £350 and our home is warm and energy efficient and in a nice location. So even if the interest rates add £500 on to our mortgage we are still no worse off than if we were renting. And we have the security of knowing we won’t be asked to leave.

It’s very well and good to look down on SO but for some people it’s security.

Yes that’s basically it. However things can and do change quickly, since yesterday the predictions are that base rate will now “only” reach 4.50% / 4.75% by July 2023 so a good reduction on what markets have expected.

So in a nutshell, there is expectations of further increases from the BofE but perhaps less severe ones than we have had recently.

no one can truly predict it, but keep in mind that mortgage rares of high 3% to mid 5% were always the norm. They have been kept low due to low base rate to manage the economy and had Brexit then Covid not hit we would have had slow and steady base rate and therefore mortgage rates increase long before now.

I don’t look down on SO at all, definitely feel it’s a better option than renting if those are the only 2 choices. Just feel that people need to be aware it has several downsides compared to a normal mortgage

I dont know if that is aimed at my comment about SO but I dont look down on it, I dont look down on people who buy shared ownership at all, but the reality is that given the options, I would advise people against it hugely for exactly these reasons, they are a rip off and aimed at people who are vulnerable.

So where would you suggest I live?

Someone on here recently tied in with Metro bank there rate was the best in the market but they are excluded from a lot of search engines