Mortgage rates

[2Dwife]

My broker has given us a rate of 8.1 % and one mortgage broker i have talked with recently said the last 10 days have been brutal and the best they have seen is about 7%. What rates have you seen?

So nothing below 3% or even really low 4% - I saw earlier that the bank in USA is increasing rates for the first time in a long time. No idea if this affects the UK.

It might do, it depends how the market opens tomorrow, if it’s what the market was expecting etc

swaps had softened today with cpi matching predictions

So strange after posting here a few minutes ago and then popping onto socials, all the reels in my algorithm are mortgage related. Not sure how that happened!

Our Nationwide mortgage was agreed at almost this very time last year and we fixed at 4.49% for 10 years. That same mortgage now would be 5.5% with basically the same variables entered into their calculator.

yes that’s because swaps are up - thank the US president for that

Our mortgage literally just completed, I locked in the rate 6 months ago, just after the Iran war started, at 4.08% for 5 years. And I just missed a 3.89% deal as I was a couple of days slow with the paperwork.

It’s not zero deposit it’s 18k deposit?
affordability isn’t an issue, bother brokers say we can lend around 400k but we don’t want to go that high as monthly’s are so high so trying to keep it around 320-350 if we can

So we are aware we are high risk and yes we have to go to a specialist lender I was just curious on the rates for high street and ‘normal’ circumstances just so we can be aware but it’s interesting.
25 year term, 5% deposit, I’m just grateful we can even get a mortgage to be honest, been renting for years and trying to get on the ladder but we chose IVF over a house and had 4 rounds in the end ( so you can imagine the cost, yes a nice large deposit! ) to get to where we are family we feel so blessed, so although the rate is high, the issue is finding a half decent property with the amount we have, that’s another issue. But as I say Im grateful and the first time we’ve ever been mortgage ready.
credit score actually good! We still have a few credit cards left too but we’ve cleared a massive amount of debt over the years so in a great position to where we were 4 years ago.

Yes it very much does. The BOE basically track the fed with a slight delay, although they would claim to be independent - in reality they are not really. See the chart. So we will likley get the same rise they just had a little later in the year.

who Is the lender?

The Bank of England base rate does NOT track the fed reserve rate. There just happens to be global inflationary pressures where central banks respond the same way. The best you can say is that there is a mirroring

fixed mortgages rates are not based on the Bank of England base rate. They are based on swap rates that move independently of the base rate. It is more than possible that the base rate will be hiked, inflation and global pressures calm but the base rate stays higher but swaps fall

Sorry ones with pepper one with Kensington
slightly different terms but pros and cons
my mortgage man is going back today to finalize a few things
two different brokers
my initial broker is who I was going to go with but was advised to get a second opinion - but it’s just left me with either options of going higher end for the house closer to what we need or lower end with a bit of DIY but lower mortgage payments
our disposable cash monthly after everything is just over 1,900 but we were thinking 1k approx monthly on DIY or say 3k saved other 3 months ( would rather
not any more credit) we have got used to saving then buying rather than using credit like we used to do but like I say another issue for another day!

what disposable cash does everyone get left with after their bills? Cost of living has really gone up but I feel just under 2k isn’t bad ??

So much to think about but being in renting and first time buyers trying to do it right as we will never be first time buyers again

If one is with Kensington and the other pepper they must be drastically different rates no?

pepper are known for deep adverse but certainty for your broker, so I suspect that’s why they’ve recommended them, you’ll Wil get the mortgage because they can even flex their adverse criteria for the worst case and an upfront payment. But it comes as a lofty premium.

kensngton however are much of a cleaner lender, perhaps less certainty but almost certainly cheaper than pepper

Yes, "there is a mirroring" would be a more accurate description. But the poster I was responding to didn't even recognise the usual correlates. I over simplified.

Pros and cons with both

Interest Rate: For the first 60 months, a fixed interest rate of 7.99% per annum - Kensington

and 8.81 with pepper

So nearly a whole percentage point higher with pepper?
What does that look like monthly repayment wise for you?
so the Kensington will likely be stressed at pay rate because it’s 5 yrs so there’s that.

same term?

sure but mortgages rates aren’t based on the base rate

So the terms much lower with Kensington I think hence the rate, 19 years so I didn’t realise that at first, payments difference of around 150 per month but then that’s difference of mortgage terms but to be honest I just think go for the longer term and when we remortgage hopefully be able to get it down, surely that’s what people do? My husband will be late 70’s if we stick to the terms and never bring it down?
he wants to retire now lol

If he wants to retire now they why are you getting a mortgage? That is setting yourselves up for a disaster

I think there are other lenders between them that offer cheaper rates and longer terms, precise for instance maybe Vida

Omg it’s JOKE hence why I said LOL
little bit of humor 🙄

of course he does, he’s 50, he’s worked hard but obviously we know he can’t.

I haven’t asked for other mortgage companies to try, I’ve gone to two brokers who have come back with 2 potentially 3. With our situation I doubt we will get much more

anyway thank you for your input, have a good day

Funny joke, but something you need to be eyes open to, taking out the mortgage will mean you won’t be able to retire or stop working (even in the event of adverse health). Especially because you’re high ltv and quite deep adverse by your rate

you do you, I work in lending but if you don’t want to ask if there’s other lenders then that’s calm.

if you took a longer term and wanted to remo to a shorter term you’re going to be reassessed again and you might find the monthly repayment unaffordable. Good luck to you

I Bet you’re fun at parties! Thanks for the info, I’m quite aware of all that, and yes a JOKE about wanting to retire geez

other lenders info is great help and gives me options but I have a broker who’s obviously tried other lenders, two brokers in fact and my question was to weigh up what normal circumstances are

anyway thank you 🙏

And you’re quite rude for someone asking for opinions from others about their mortgage rate as a high risk borrower

So is saying that we are setting ourselves up for disaster - and mentioning we are high rate, so ?
maybe think about your wording than accusing people of being rude