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.

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Just to be crystal clear, the comment that’s been deleted from me was not a personal attack on anybody.

Good luck. Anywhere nice?

Share some information on the deal criteria and/or eligibility? With a deal that good, I’m assuming you’ve not just ignored it and made some progress to see if you can switch earlier? There literally is a great mystery because no one has found anything that explains how you got those deals.

You can trivialise this all you want, making jokes about people considering suicide, but the difference between a 3.9% and a 5.9% rate is likely to be substantial for most people. There are some posters on this thread genuinely asking you for help. And have done so pretty politely for the most part.

This thread went a bit batshit 🦇

Yeah it happens from time to time. People get bored waiting for something dramatic to happen in the world of mortgage rates

@Twiglets1 it's a shame as a lot of people are understandably worried about it (including me) so would have been nice if it was generally a more informative / supportive thread.

well it would be nice if some of the people complaining ever contributed anything informative or supportive themselves but most of them I've never seen contribute anything to this thread before today.

This and the previous thread go down a rabbit hole over the same poster every now and then. Best way to change the subject is to mention "moving home with Charlie" works like magic 😂

I think this is an informative thread, actually. There are some very knowledgeable people, and most people are (in the main) pragmatic and acknowledge that solid predictions either way can't be made. However, trends can be seen and they are indicators of the future.

I ignore anybody who is doom and gloom as much as I ignore anybody desperately trying to talk the market up. The fact is that interest rates have risen significantly; there are people on current fixes who will be in the shit when those fixes end at current rates; and there are also people who are relatively unaffected by the situation (either due to being able to afford rises or not having a mortgage at all). It's not one size fits all as to what effect the rates have.

Also, I find it interesting that some posters are berating others for what they see as personal attacks / bullying when they've joined in with exactly the same behaviour on other threads against somebody whom they emphatically disagree with. Pot, kettle somewhat.

Are banks likely to put their rates up ahead of the 21st September announcement? I can't sign up to a new deal until 1 September. The best 2 year fixed I can get at the moment is 5.99%, which will be painful considering I'm on 1.99% now.

Probably not. Having just come down a smidgeon (possibly just to compete for a smaller share of buyers mortgages), I can't see any reason why they would move up ahead of 21st BoE decision. But no one can be sure.

For data lovers trying to get a handle on what's going on. Some good news and some not so good news - so balanced?

And definitely for balance, here is the EA view from the coal face. A very informative weekly show.

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I don't believe anyone is forecasting that banks will put up their rates ahead of the September 21st announcement re base rate.

When Lenders decide on their Fixed rates, they need to price in future rate rises or falls. Rates are expected to slowly start falling from 2024 so unless this changes, there is no reason for fixed term mortgage rates to rise.

Basically the markets are data driven. The price of debt is established on a dynamic basis and increases/decreases daily based on the data.

If we see data before the next rate decision that indicates higher inflation going forwards then the cost of money will increase. If this cost goes beyond a certain level then banks will be forced to increase mortgage rates.

Over the past month or so, gilt yields/swap rates have fallen from a peak around July 10th (about 4.9% for the 5 year) to about 4.3% on July 19th. I think this is the driving factor behind the recent rate reduction.

However, since mid July yields have been slowly increasing, and over the past few days they have now climbed back to about 4.75% for the 5 year.

I’ve found this thread really helpful despite the occasional derailments. Any threads to do with housing, benefits or SAHM’s tend to turn batshit on here😂

Anyway. I fixed for 5 years at 1.33% last year. Obviously a great rate given how things have changed. I originally received the offer in April 2021 and amazingly enough NatWest stuck with me and kept that offer as 3 successive purchases fell through. Buying was hellish but I finally completed in March 2022. I’ll be forever grateful to the broker at L&C who convinced me to go with 5 years rather than 2 as “you never know that’s around the corner”. I’m aware I’ll never get anywhere close to this rate again and 2027 will come around quicker than I imagine so this isn’t a stealth boast or anything as I’ve just been lucky, not clever, and I’ll have to deal with increased payments soon enough.

Hoping 2024 brings better news to those of you who are struggling.

Interesting thread, thanks to those who have been able to provide some insight to the situation.. Our fixed ends in Feb 2024. Any advice about whether it’s best to try and sort something as soon as we are within the six months, or hold our nerve and leave it in the hope things start to fall? Don’t want to sign up to a fixed at the ‘peak’ so to speak but equally aware things could just continue increasing.

Yes, the usual advice from people like Martin Lewis and others is to fix a rate when you are within 6 months (with some lenders it is 3 months apparently but most are 6) but make sure you have the ability to change it if you see a better deal elsewhere. Most Lenders will offer this automatically but it's worth checking.

I’d recommend working with an independent and finding a deal, doing all the paperwork but don’t sign on the dotted line. Play the game well and you can secure a deal whilst still being able to pull out (so if a cheaper deal comes up, you can swap to that one). And a good broker will proactively look for a cheaper deal.

That's a great rate indeed.

So many threads go this way on Mumsnet! It's what I love and hate about it. Often infuriating but never boring.

It's a tough one, but by 2027 rates might be down again so you might skip the peak entirely. Or maybe not ...

I think around 2021/22 most people in the know suspected rates were going to start climbing, but as ever there was no cast iron guarantee.

I guess with a hefty dollop of hindsight you could argue rates were at a historically low value for a long period and there was much more potential for them to go up than further down, and that the limit of manipulating the economy in terms of monetary controls like QE had been reached.

Of course to actually go for the 5 or 10 year fix knowing full well it would have increased your payments in the short term is another issue...

Having checked the paperwork I can see our current deal ends in February 2027. For some reason I had it in my head that it was the end of 2027. This means we can start looking at new deals from September 2026. which is not very far away at all. I think we need to start tightening our belts now as best case scenario is a minimum 3 fold percentage increase for us, we’re certainly not going to get anything close to 1.33%. Eeek.