6% mortgage rates

[spring33]

Old thread https://www.mumsnet.com/talk/property/4813815-5-mortgage-rates?page=1

New thread, let's hope the next one won't be 7% interest rates or higher.

Just check MSE or any other equivalent site:

I believe I’m getting 4.6 without even needing to fix with Kroo

Savings that is

I’m getting 4.1% with Chase from August 14th and it’s Easy Access with no penalty for taking money out as I want to.

Not the highest by any means but was very easy to set up and easy to move around from an App on my phone @Xenia Also, easy to speak to a person and good customer service. You really should be getting way more than 1% on savings at the moment.

And it was £53k in '89 but only £160k today. Dubious

1% savings interest when base rate is 5.25% sounds quite a find

Because the equity has increase by 400% and we have fixed the interest rate every five years, when we need a loan it was cheaper to remortgage. I wouldn’t do it now but it is fixed until 2025 and I am paying the max lump sums until then so will have paid it off by then. We have only extended it by a few years and have been paying max extra payments so the overall cost is low.
I have never been frightened of using equity in property we made absolutely no money from savings over the last ten years but our property rapidly increased in value. Because of a guaranteed inheritance and large profit from the sale of my business and a pension lump sum I knew I would be able to pay it off. But since it is on a fixed rate and subject to an early repayment penalty it makes more sense to put the money into short term fixed high interest accounts. I have worked out the most efficient way of paying off the mortgage over the next two years.
Up until a couple of years ago we had a lot of capital tied up in property but we’re cash poor. We decided to use a remortgage to pay school fees but always knew that we could pay it off.
I think it would have not been feasible if it was our only asset.

My first house was 53k, a small terraced house with a communal garden. Bought at the top of the market in 1989 and sold for 45k in 1996. The house we are currently in was 73k in 1995 at the very bottom of the market after the early 90s crash but is now valued at 300k. It is rural and in the right school catchment area so they attract a premium. The first house was really just a two up two down but was new. Now they are 30 yrs old they haven’t climbed that much. We live in a very rural county where house prices are reasonable.

I paid off my mortgage in April so don't really have much savings yet so not bothered about the 1%. When I get to a point where there is more then I might well shop arond. Inflation is about 10% so any money saved in a sense is dropping in value on a constant basis. 1.4% gross actually - I just checked but that is before tax on any interest over about £500 a year I think.

Tax allowance on interest is £1000 - each for a oouple. So anybody with more than around £20k savings in a non-ISA account need to be thinking about possibly filing a tax return next year.

Article in the Telegraph this morning about 3 big lenders cutting mortgage rates for the second time in two weeks.

Nationwide announced a reduction of up to 0.55% from today.
TSB will be cutting its rates by up to 0.55% from Friday
HSBC said its rates would be lowered from today.

It is £500 when you earn 40% tax (and 0 once you pay 45%). I am not in a couple either so that doesn't help, but I don't really have savings as yet as just paid off the mortgage and support my last 2 children until early next year when they start buying their own food.

Once I do have some savings I will certainly be looking into the best instant access arrangements. In fact once I build some up that will porobably be used straight away as I have a big job next year of paying to have the outside of the house woodwork painted so not quite into having a lot of savings and where to put it as yet.

Article from Independent announcing that Halifax will be cutting fixed rates on various products from Friday by as much as 0.71 percentage points.

Mortgage brokers said yesterday that higher falls in rates could be seen if inflation data next week was positive.

David Hollingworth, of L&C Mortgages, said that if the figure announced next Wednesday (16 August) was lower than expected, this might lead to mortgage deals dropping further, on the expectation that the Bank of England‘s base rate may not be as high.

https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/big-lenders-join-major-banks-dropping-mortgage-rates-competition-returns-market-2535888

And if it’s higher than expected mortgage rates will go up. Fairly brainless comment.

From tomorrow (Friday) Halifax 5 year fixes will fall from 5.99% to 5.28%. This is for people with 40% equity.

Their 2 year fixes will also be cut by up to 0.27%. Buyers with a 20% deposit will pay 6.18%.

The issue with all of these mortgage articles is that they rarely disclose the volume of funds available. It's a crucial bit of information.

Many "cracking deals" only have a few million pounds allocated for them, meaning that very few people will benefit.

There are a number of banks and building societies who use these unicorn deals just as a way of getting some cheap publicity.

Yes how disappointing for them

It's great news, but please would you contact RICS to let them know that they are wrong.

https://www.reuters.com/world/uk/uk-rics-house-price-gauge-falls-lowest-since-2009-interest-rates-rise-2023-08-09/

Armageddon?
No, but real people are still really struggling. Not sure why there’s so much flippancy.

What I said about Halifax was factual and it continues the trend already noted from other lenders that are starting to reduce certain fixed rate deals.

Shame the headlines all disagree. Back in the real world, many people are finding it hard to pay their bills. I guess you find that amusing.

Also, can't you HPC obsessives find a new hobby or something?!

We really can’t be complacent. House prices are going to fall over the next couple of years and the job market looks like being much weaker, but both will contribute in inflation falling back to target. That’s a horrible RICS survey and is the best guide to future prices available.

It's a half-truth unless you (the banks) disclose all the pertinent details - the amount of funds available, the minimum income level required, the maximum income multiplier, etc.