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.

This isn't a thread about Shared Ownership or even new builds!

I know we all go a bit off topic sometimes but this isn't the place for a full on debate about SO, maybe start a new thread about it?

My lender (HSBC) is only showing 6%+ mortgage rates for the absolute worst LTV which is 95 and 2 years fixex.
LTV 90% and less is significantly below 6, and it goes into below 5% for people with low LTV and for 5 years fix.
I think the way things are going I will soon regret fixing for 5 years at 4.07% which I did in September.
But happy for people coming out of low fixed rates in 2024-25.

That's really nice that you are happy for people coming out of low fixed rates in 2024-25 that mortgage rates are falling. They will still probably find their new rate a substantial increase but at least it's not looking as scary for them as once suggested.

To secure 4.07% in September 23 was a really great deal so the vast majority of people would have been happy to sign that deal.

I don't know if by the end of 2024/25 people will be able to find lower rates than that but even if they do, I doubt they would be much lower. I haven't seen any financial experts saying we will be returning to the ultra low rates of recent years.

And out of 1000 posts, the slight diversion will only be a teeny percentage! It's not for anyone to police what's posted, thanks all the same!

As you were then Fluffy … I think your last comments were telling people off for talking about different issues 😂

Borrowers can now secure a fixed rate mortgage with an interest rate below 4.5% after Nationwide announced its ninth round of rate cuts in three months. From tomorrow, Britain's biggest building society will slash its mortgage rates by up to 0.43 percentage points across its fixed rate deals.

Nationwide's cheapest five-year fixed rate, which is available to home movers with at least a 40 per cent deposit, will be 4.43%. This makes it a new best buy, though it has a £999 arrangement fee attached.

In a document published alongside today's Autumn Statement, the Government's Office for Budget Responsibility noted that markets now expect interest rates will need to remain higher for longer to bring inflation under control. The OBR said: 'Markets now expect Bank Rate to settle at 4% by the end of the forecast (in 2029), rather than fall to 3% as we assumed in March.'

If that is correct, this means mortgage rates are unlikely to get significantly lower. However, mortgage brokers are expecting Nationwide's latest flurry of cuts to cause other lenders to follow suit, at least over the next few weeks.

Nationwide sends mortgage rates below 4.5% for first time since June | This is Money

Oh my Dd will be thrilled! Looks like she won’t exchange until just before Xmas now … v pleased with her delay given that her soon to be fixed rate keeps dropping!

The average mortgage rate for those buying or remortgaging with at least a 40 per cent deposit or equity is currently 5.29 per cent, according to Moneyfacts.

This caught my eye in the article. We have 5.29% with a 10% deposit. Lower would've been nice, but we've exchanged now, so that's where it's staying! We've gone down 0.5% since first applying for the mortgage in early September.

Congratulations on Exchanging and as the article suggests rates won’t fall much further, it certainly sounds like you got a decent rate for 90% LTV with no fees.

I stalked the lender's website for a drop after rates were held and got onto the broker as soon as they dropped as I knew exchange was imminent!

Overall I'm happy with what we've got, as I think there's still the potential for a touch of volatility in the near future at least.

The average mortgage rate for those buying or remortgaging with at least a 40 per cent deposit or equity is currently 5.29 per cent, according to Moneyfacts.

im surprised its that high with 40% deposit. Encouraging me to overpay as much as possible!!

Great - DDs rate is down to 4.58 fixed for 5 years. She is delighted!

People with 40% deposit and good credit rating should be able to get a rate beginning with a 4 now, especially if prepared to pay a set up fee around £999 as shown in the Nationwide example above.

Always good to overpay if you can afford it though to shorten the term.

That’s good @Delphigirl 😀

😎

Brilliant 🤩 so pleased for her

Seems like good news, I'm praying they at least stay the same - our fixed ends next July and we can start looking for a deal in January

@Twiglets1 Ive got yrs to go but want if lower by then. Struggling to get my head around paying so much more just to service debt!

It’s a killer when you work out how much of the amount you pay on the mortgage each month is just interest, isn’t it? Especially the first few years.

https://www.msn.com/en-us/money/markets/borrowing-costs-jump-as-traders-unpick-hunts-autumn-statement/ar-AA1kqGHn

So we need to renew our mortgage April 2024, currently with Halifax.
The deals they offer for us is (we wont go with more than 3 years fixed rate because of several personal financial forecasts):

• 5.95% - 2 years fixed no fees
• 5.58% - 2 years trackers no fees

Tempting to go with tracker and stretch the term of the mortgage to allow us flexibility. I have looked around and Nationwide for our loan- has 5.33% fixed 2 years no fees (but I guess will need to pay for legal fees etc.?) How easy it is to switch over to Nationwide? Has anyone dealt with them? Are they easy to deal with? Our credit history is good, I just don't know if it's worth the hassle to switch over. Halifax has been great and almost hassle free so far for us.

Our mortgage is with Nationwide, they have been good for the 5/6 years we have been with them. They offered us a competitive rate when our last fixed rate deal came to an end so we took out another fixed rate deal with them.

Having said that, I’m not sure it is worth the bother of switching to a new lender if you’re happy with Halifax. There can’t be much difference in cost? Also, the lenders are keen to drum up business at the moment due to the stagnation of the market, so the rate Halifax are offering you is likely to go down before April.

I think I would leave it to January to see who is offering what deals at that stage. Make sure they offer the flexibility to reduce your rate again if the rates go down further before April.

There are trackers with other companies with no fixed period and no exit fee. The % might be a bit higher. It's what we intend to do if we buy within the next year. You need to speak to a whole of market mortgage broker to see.

Them being good to you is not reason enough to be loyal, you need their products to work for you. Maybe call them back and ask them why they can't offer a tracker without a fixed term and no fees, have the information to hand about those who do offer this.

Competition is vicious between them ATM. Those who don't match one another will lose out.

Due to remortgage end of this year. Have two 2 year fixes, no product fees, in place.
One at 5.84%
One at 5.49%
I have seen today the second product has dropped to 5.24% so I hope they will offer that instead.
Other lenders are even a bit lower, but it is getting close, and I have been advised not to go through credit checks lots of times.

Interesting article on mortgage rates & the housing market:

If I look at the live rates on my screen, the market makers are clear in that two- year swap rates are below five per cent (4.74% to be accurate). To understand that, this does not mean that the rate in two years will be 4.74%. That is the average rate over the two-year period. While they might be wrong about the future, that’s the basis on which rates are currently being manufactured to be sold to the public, not what the current Bank of England (BOE) rate is.

So, if rates are not expected to drop until August (which is what they are saying), to achieve an average rate of 4.74%, rates will have to drop sharper at some point. Either way, the market makers are saying ‘they are falling’. It is only when something stronger comes from the BOE, (normally with their press office briefing material), that journalists will respond, that sends a strong message out, and hey presto, you have a buyer’s market again.

Is it sensible to mess around trying to time that market? No.

Let’s remember that two and five-year rates differ right now. Five-year rates are cheaper, which is called an inverted yield curve, a sure sign there is a threat of a recession. A threat of recession causes panic and more fear and potential paralysis again, when actually it’s good news for the buyer in terms of interest rates, as they have to fall to inject liquidity into the economy.

However, the important part here is the advice on whether or not to fix your rate, and for how long. Personally, I cannot see how the UK economy can deal with rates this high, which is what is echoed by the market with two-year fixed rates at 4.68%, variables at 4.59% and some remortgages at around 4.59%, all below the BOE base rate.

Mortgage rates and the housing market (msn.com)

" it’s good news for the buyer in terms of interest rates, as they have to fall to inject liquidity into the economy."

When you read something like that you know you are not dealing with high level economic analysis, this is just click bait for the masses of indebted mortgage holders.