6% mortgage rates; trouble a'ht Mill

[Twiglets1]

This is a new 6% mortgage rates thread as the last one is almost full.

Thanks to KievLoverTwo for suggesting the second part of the title to reflect all the squabbling these threads are causing. Which could be a thing of the past of course. But realistically, it won't be.

https://www.theguardian.com/business/2024/feb/07/uk-house-prices-rise-at-fastest-rate-since-january-2023

Not sure the "Get on the ladder before the ladder gets pulled up!" message will work any more TBH, the slightest uptick in inflation and rates will get hiked, people now know this and are fearful of large unpayable debts for a roof and four walls.

And yet anyone who regularly checks on rightmove will know that properties are constantly being reduced, re marketed with a new agent or "unexpectedly" revailable 😂

Halifax can say what they like, but nothing's moving near me.

Sounds like a lack of wealth around your way.

Has anyone managed to see rates sub 4% recently?

@TrudyProud we have just agreed a 3.89% 5 year fix on our mortgage.

@TrudyProud

We got 3.79 with HSBC recently

@Pl242 who did you see 3.89% with? What's the ltv? We are 60 and not seeing a benefit below 70ltv even with a broker.

Thanks @ChatBFP . What is your ltv? I'd seen 3.99 with hsbc but on their website. I'll go into branch to discuss .

I think LTV is about 55% but we’re just renewing a product with our existing provider, Santander, so we’ve not gone through the whole valuation on the property this time, but did 5 years ago when we bought the property and got the original mortgage. Rate then was just under 2% @TrudyProud

Ditto. If you use your own powers of observation, things are at odds with the HPIs.

I heard that they put them up because the bond market signalled that they needed to in order to make any profit, but they are still trying to put teaser rates out to FTB to get them locked into multi-decade loans at high prices, smart FTB are staying away from the market now IMO.

Or maybe a lot of sensible buyers?

@TrudyProud

We are below 60% LTV. I've seen that the rate (5 year fix, fee upfront rather than fee saver) has now gone up to 3.84. We did already have a mortgage with HSBC though, so I think if you are moving the offer is a bit worse, maybe 3.99?

Still crazily low borrowing rates, I hope people with existing debt are snapping up these fixes!

https://www.msn.com/en-gb/money/other/homeowners-in-mortgage-arrears-up-25-in-a-year-as-rate-increases-bite/ar-BB1hYBDS

https://www.msn.com/en-us/money/other/landlords-in-mortgage-arrears-doubles-in-a-year/ar-BB1hYgNA

What happened to just banging up the rents to cover it?

Wow that's brilliant

Our fix ends end of July and we've got a meeting with our mortgage broker in a few days, to hopefully lock a deal in. everything crossed we can get a decent one

We had our house valued recently and they said if we put it on the market would be offers above £260000 . and our remaining mortgage debt is about £98000 so decent LTV 🙏

Definitely - and also people looking to borrow for the first time.

@janicegarvey

Sounds great. HSBC only gave me 30 days to accept, which I understand is quite standard for remortgage for existing customer, don't know what the position is if you are coming in. Good luck with the broker! Definitely worth trying to hold an offer at least - swap rate has gone up to over 4 now given uncertainty on rates, so at least holding an offer is great as you can monitor where you think it is going before you jump.

Well not for first time borrowers, they would be massively overpaying if rates stay at this level or go higher IMO, asking prices are still silly at the moment.

Ok. thanks

So you think house prices will drop enough that first time buyers should wait and take the 10% (or whatever it is you think will be the average rate) over their 25 year term? It's certainly possible but it wouldn't be my guess.

Well if the average rate does become 10% they will be better off over the longer term the less debt they start off with, but even if rates stay where they are house prices are going to drop, we can see that by the sudden fall in demand.

@CrashyTime that is your opinion presented as fact

We are finishing a 1.7% this year @Pl242 . Sad times

@ChatBFP yes, I can see the 3.99 % but enquiring to see if we can nab better. Might just need to lock that in as doesn't seem like we'll get better at our ltv .