So…

Just about to remortgage with a view that interest rates were going to rise later this year and steadily rise after that.

Then China goes to crap, Iran’s sanctions are lifted bringing their oil fields online and the Oil prices go for a sky dive.

Bringing Mark Carney (BoE Guv’ner) announces that a rise in interest rate rises soon was unlikely. http://www.bbc.co.uk/news/business-35350277

So the question is, what will this mean for mortgage products? Lower rates than currently on fixed term products?

I’m about to apply but if I lock myself in and a few weeks later there are better deals I’ll be kicking my own ass for weeks. Especially as I’m on a stupidly low rate currently.

You’re overthinking it. Rates can’t realistically go any/much lower, they will eventually go up but not fast, not far and not yet. So take the best offer available and worry about something else. Personally I’d go for a long term discount/tracker rather than a fix.

Just tweaked my tracker mid-term to Nationwides. Base rate + 1.24%. No fee or charges. Over payments etc.

What’s your thinking on a long term discount/tracker?

I want lowest rate possible currently (so that is likely to be on a short-ish term Tracker), as I have a bit of money to bite into mortgage if rates increase. This allows me to save currently at a higher rate than the mortgage.

I don’t do long term anything.(and neither does the economy it appears!) Things move too fast. I think flexibility is key so a mortgage that doesn’t charge fees and restrict over payments is best for me.

The key with a tracker is being able to react appropriately if and when things change. Which they will at some point.

Watch the fees on some of the lowest advertised rates.

interest rates were going to rise later this year and steadily rise after that.

We fixed on this basis in the summer at a smidgen over 2%

Depends on your situation too though. A huge mortgage with 28 years to go means we really can’t afford a rise in the short term and all that mattered was a monthly repayment we could afford. A smaller mortgage with only 5-10years left on it I’d have a far greater appetite for risk.

My logic on the remortgage was to Fix it as the rates were expected to rise, although I didn’t think we’d see them rising that early or rapidly once they did start rising. The recent announcement has made me think it’ll happen even slower now so a discount tracker might be the way to go.

Basically ‘they’ keep changing their minds.

I think there is a lot of pressure on keeping interest rates low – so something has to change in the wider economy to create a different environment that would be the catalyst.

Can anyone recommend a mortgage broker?

I work in the credit industry and I’m aware that any interest rate rise would have a massive impact on those living on the edge – where any increase in payments might put them into debt. Which is why I don’t think interest rate rises are going to be as rapid as everyone expects. I can see the noises about raising them are to prepare consumers for an increase but I wonder if this is more posturing than any serious move to do it.

Just about to remortgage with a view that interest rates were going to rise later this year and steadily rise after that.

I reckon rates will go down in the next year or so. Economy is far from healthy at the moment.

I fixed for 3 years last year on the basis that I was expecting to see a rise this year but I doubt that is going to happen.

I never fix for more than 3 years though as generally over the 3 years my mortgage is small enough I move between high percentages of loan to value so benefit from the interest breaks available.

This thread from over a year ago:-

http://singletrackworld.com/forum/topic/right-its-time-to-negotiate-a-new-mortgage-deal

is worth a read, if only to see how people opinions have changed with the passage of time. My opinion now is the same as it was then, I dont see interest rates going up any time soon, certainly not this year, maybe small movements next year, but no massive lurches.

There will always be a better deal coming along, so pick the best you can now. If you don’t need to lock in then risk it.

I personally locked in for 5 years last year, which on paper is madness and I would advise people don’t. However it fitted my circumstances. I have a fixed amount which is important, it’s on an offset and most importantly I don’t have to apply for another 5 years. Things are changing around work wise for me so didn’t want to be applying for mortgages in the first few years of business establishment, which on paper you can have good months and terrible months. It took the worry out for me.

Either way I am in it now, so will worry about other stuff that I change, not regretting a decision I already made

I looked in to this a few weeks ago – currently my mortgage has 3 sub accounts – +0.48% tracker +2% tracker and 4% SVR – which averages out to 2.45%. It’s marginal to whether it’s worth changing the SVR (the smallest sub account in value) to a fixed but by the time fees are paid it’s not really worth it. Changing the whole lot to a fixed would put me on a higher rate (but guaranteed not to go up), rates would have to go up a lot in the next 5 years to cancel it out and then I’d be back looking on a SVR not a low tracker or re-mortgaging again.
I’ve never re-mortgaged and probably won’t unless as once you look in to it the fees really cancel out any rate savings. Of course if you have not wriggle room on rates a fixed might suit you own circumstances better.

> What’s your thinking on a long term discount/tracker?

With fixed rates you’re paying for certainty – that don’t come for free. Ultimately you may win or you may lose, probably the latter but you can’t know until after the fact. “They” know more than you, and they don’t like to lose.

With trackers you’ll ultimately pay the long-term weighted average, the cost being uncertainty about what you’ll pay from month to month. But on average over the long term these will work out cheaper, and these are generally more flexible.

Rates are super-low at the moment so get a tracker and overpay, then when rates go up reduce your overpayment accordingly to keep your total outgoings flat. If you can’t afford to do that then perhaps think very carefully about what you’re about to do!

I used this broker and have just moved over to Halifax http://www.SimplyFinanceGroup.com

They were OK got me a deal which I couldn’t match directly and made the changeover process simple. I went fixed but flexible. I’m tied in for while but that suits me.

Was looking last night you can get 10yr fixes at just over 3% so the banks don’t think rates will rise much anytime soon. I’m currently sitting on a stv of 2.5% can get cheaper short term deals but will pay a fee and revert to higher stv so sitting tight a putting money into 3% savings accounts

putting money into 3% savings accounts

A proper savings account or one of these current accounts with hoops to jump through and limited max balance? That’s a good rate at the moment. Be interested to know where.

Was looking last night you can get 10yr fixes at just over 3% so the banks don’t think rates will rise much anytime soon.

This is what I’ve always thought, banks are unlikely to sell themselves short, fixed rates are almost always likely to have some cushion in for the bank to absorb over the term.

Santander 123 is 3% up to £20000. There is an account fee but you can tweak that away with Cashback from your DDs.

If any knew the answer to the last statement/question to the original post they would be sat on a beach with Bill Gates, Jay Z and Michael Jordan sipping Pink Champagne!!!!!

You can have 3 Santander accounts as a couple. Yes there are fees, easily covered by cashback, and you need to put in £500 per month and have 2 direct debits. Nothing to say after the money goes in, you can’t setup a dd to take it straight back out takes 5 mins. I have a primary account which feeds the Santander ones.

Magazine subscriptions cover the mandatory 2 debits.

Not hard to setup and maintence free once it’s done. just syphon off the amounts over 20k regularly.

I think you get very good cashback from Santander mortgages as well, which I’ll look at in more detail when we move

1% cash back on up to 1000 pound residential monthly mortgage payment with Santander