We might all die next year. I would urge everyone, rather than looking to get a better mortgage deal, to remortgage as soon as possible, release as much equity from your house as you can, buy an expensive holiday and take a drug overdose.

Some sensible comments on here, but what people often forget is that with low rates and low (if any) wage increases, something that is a financial stretch now will continue to be so for some while.

It would be so much better if houses were cheaper, interest rates higher, mortgages cost more and there was some wage inflation in the system.

This would allow people to have far more disposable income to spend in the wider economy after a few years rather than continual indebtedness to the bank.

There are other advantages too but the cretins in government and at the Bank of England continue to do everything they can to maintain high house prices. A national discgrace to be honest.

As a very recent first-time buyer, a cautionary note for anyone looking at this thinking it's a mustard deal. A mortgage is the biggest financial commitment you'll make. All advice on here whilst undoubtedly well intentioned is not advice for anyone personally. Get a mortgage advisor or speak to a bank directly who'll be able to advise you on the best course of action for your financial circumstances. We nearly made a silly mistake when getting our mortgage and glad we were diligent and did our research.

I still remember having a fixed rate of 12.75% and being glad!!

Just come out of my last fixed deal and have 7 years to go to finish the mortgage. Am going to fix the 7 years with any deal that comes out around 2 - 2.5% and will be glad. The peace of mind from knowing that it cannot go up is immense. There are times I've won and times I've lost, but I've never had to worry about what "might" happen, and that peace of mind to me is priceless.

Have either of you looked into the price of breaking out of your current deal and taken into consideration how your provider now rates the value of your property, e.g. what sort of LTV deal could you now get? Worth a check.

Advice please! I always thought less interest rate is better but HSBC advised me other way as there is no fee involved. Will 1.74% fee-free deal be better than 0.99% with £1499 fee on 150K mortgage for 2 fixed years.

A £1mln property currently yields maybe £30-35k rental income, nowhere near the £80k you suggest.
TBH, the interest of foreign buyers depends more on the long-term economic outlook for the UK and whether they think they are welcome in the UK if they want to live in the property. There's been stories of foreign buyers putting deals on hold because they think they may not be welcome...

Nope with barclays. I'll speak to them and see if they switch me to a better deal which I doubt they'll do

is there a lot of market for rentals at 80000 per year?

​there are 60 million people roughly in the UK. so if we all donated 50000 pounds each to ukdebt.org we could wipe out uk debt

​i cannot really imagine how much that is really. thinking in perspective: 1 million seconds is 11 days, 1 billion seconds is 33 years, so 3 trillion seconds is 100 millenia

​but your house has no doubt gone to over double the price you paid for it.

Is this really a good deal? I thought 1.99% with £1,500 product fee for 5 yr fixed was a "good" deal so 2.79% 10 yr fixed with no fee is a fairly bad deal? Because the difference on borrowing £100k would be £5,000 worse off.

Edit: evidence. https://www.uswitch.com/mortgages/remortgaging/?utf8=%E2%9C%93&sort_by=&mortgage_form_options[property_value]=150000&mortgage_form_options[loan_amount]=100000&mortgage_form_options[mortgage_period]=25&mortgage_form_options[mortgage_type]=fixed&mortgage_form_options[repayment_method]=capital_repayment&mortgage_form_options[initial_period]=60

HSBC do 2.2% w/ £2,000 product fee ... so that's total cost £26,000 over 10 years. This deal is £28,000 over 10 years, not exactly a bargain, just the going rate locking you in for longer.

HSBC: The world's local money launderer

was that with HSBC? If so is it worth speaking to them to see if you can switch to this deal penalty free? Not sure if it would work but worth a try if you wanted this deal?

can't really answer that without knowing your personal circumstances....find a good mortgage broker

LOL! Clearly you don't have a mortgage...

An LTV of 70% means you would need to own 30%, which probably quite a lot do.

stupid deal, who owns 70% of their house, next there will be a better deal that if yuo have 100% ltv, the interest rate over 25 years will be 0.00% -

If you think yields are to drop, it means that you think rents will fall or property prices will rise. I doubt either will happen. The loses to investors won't be in rental income. It'll be through capital depreciation.

Like many capitals where property is held like gold by the rich regardless of value for money, London yields are racing to the bottom. 2% if lucky.

Democracy not to your taste then?

I am just coming out of a 4.3% 7 year fix with HSBC. I just renewed at 1.69% for 3 years because I did not want to take another long term fix. The above deal though sounds fine, provided there is a housing market in 10 years, now that little britain spirit has infected 52% of the population...

why?

damn.. i fixed at 2.79% in January 2016 and fixed in for 5 years... at the time it was a decent enough deal.

That's me told

heat :wink:

Well said ghostman, well said.

Since when has rent been 'fixed forever'? Landlords can kick you out after 6 months without even giving a reason, so they can also do so if they increase the rent and you refuse to pay.

Honestly, this is not a deal unless you are just too lazy to remortgage or have very little left on your mortgage. 2.79% over 10 years means, if rates stay at around 1.5% or lower over the next 5 years (very likely) then rates will have to be 4.1%+ over the last 5 years (very unlikely since Mark Carney even before Brexit said the new norm was likely to be 2-3%) to end up at an average of 2.79%.

TL:DR - save your money, go for the cheapest 2yr deals you can find.

It wasn't a competition you entered.
It's not a case of who "won" or "lost".
Don't belittle people who are genuinely concerned about their futures, when there are clear signs of unsettled times ahead.

Time for a mortgage review!!!, I think I pay just under this rate now, but on a tracker!, the 10 year assurance of payments would be good for me

Heat added, thank you op and everyone posting!

​I don't think I suggested I'm more qualified to do his job than him, I certainly am not. Do you consider that a requirement before people can criticise anybody who wields huge power over us all?

The bank of England was given the remit of using the base rate to control inflation, something that will soon be many times their set target of 2% due to the sharp drop in the pound. Lowering interest rates will unquestionably make inflation even higher. At that point the bank of England has clearly ditched it's given remit to pursue something they consider a bigger issue.

Both mortgages due at the end of August.. looking for £90k and £38k (BTL) mortgages.... would love a 20 year deal....

Mortgages should be like Rent... Fixed FOREVER!

Our building societies are non-profit mortgage lenders. But I think their deposits cost them a bit more than 0.77%. We may well see "peer to peer" platforms expand into mortgages, though they carry more risk for investors than a building society deposit.

Investors invest based on yield with expected capital appreciation a close second.

A £1,000,000 London property with an annual rent of £80,000 would have cost a US investor $1,500,000 just before brexit with the pound touching $1.50. It would have been bringing in an 8% yield then but, with currency movement, that yield for the person that invested last month would now have dropped to 6.9%.

For todays investor, that £1,000,000 London property, still with an annual rent of £80,000, would cost a US investor $1,295,000 at todays rate and have a yield of 8% based on the current rent of $103,600.

In other words, the yield for todays foreign buyer is the exact same as last months foreign buyer, but with a lower expectation for capital appreciation.

Exactly. People are looking at price drops brought on by exchange rate fluctuations as attracting foreign buyers but they need to look at it from their perspective - that £10,000 monthly income they're getting has just become worth a hell of a lot less Euros or Dollars.

Sounds like we need nonprofit or minimal profit mortgages. Maybe the government should loan the money and build the bloody houses.

Also a lot less chance of defaults if payments are low. They could evenvspend the spare cash in local shops and boost the economy instead if it disappearing into offshore accounts. A ver capitalist idea huh not corporatist.

Also HSBC have proven themselves a corrupt organisation. They made about a billion off the illegal drug trade in Mexico I'm told, they have bloiod on their hands. About 20 thousand people have died in the drug war in Mexico. So there are obviously benefits in weakening some of these multinationals.

Yes well a lot of foreign buyers may ibfact be trying to sell their overpriced empty flats in London before things get worse.

and the people to take advantage of the prices dropping in london will be those who will also be getting more pounds for their currency thanks to the outters.. its a win win for the wealthy foreigners.

If house prices slow or even regress and interest rates go up first time buyers will have to pay the same if not more.

And those who potentially see their London house values drop will do what the majority are already doing - move out to somewhere they can commute from. They'll get better value for money, and house prices will remain at the level they are in the home counties.
I'm in Bedfordshire, in a town which is a 40 min train journey to Euston. Prices are most certainly not dropping, and houses stay on the market for 7 days at most.

As for someone's comment about rental prices ultimately coming down - why??
These new era property magnates will continue to buy up houses, possibly at lower prices, but will still want a decent income.

Don't know whether anyone has mentioned this, but UK 10 year government bonds pay 0.77% today. That's the reference point for the banks' cost of funds. It's what the "market expectations" are for interest rates. The difference between this and the customer mortgage rate is the profit margin for banks.

lol, yes, 35k mortgage and i think the repayments were around 600 a month!

Move to somewhere more affordable?

Didnt i read somewhere that rates are going to drop further- perhaps even to zero %? Hopefully this will also coincide with some sense entering the property market. Things have been pretty ridiculous for a long time and me and my partner have been getting increasingly frustrated at having to indefinitely postpone moving because of the crazy year on year price increases.

Exactly what is "affordable" housing ? If you are on minimum wage taking home approx £1000 a month ... Like millions of people , Will you be able to afford any of these being built ?

Things are changing a little bit. It's about time the government and councils built more homes. It's a bit odd to see a Tory government promoting it.

That doesnt make sense. If I borrowed £200,000 @ 2% over 25 years that is £848 a month. If I only had to borrow £150,000 it would cost me £792 a month. Prices don't have to drop much for interest rates to be able to safely go up and still be easily affordable.

As for the cost of housing and hose building. If other countries can knock up decent quality houses for cheaper why can't we? Why does the cost go up by 10% year on year? Someone is making a killing somewhere that they shouldn't be.

Couldn't agree more. What some people forget is that it is not in the day job of most people to play the markets. Whichever way you look at it circa 2.5% (see Coventry Building Society 10 yr offerings) fixed for 10years is a very cheap interest rate.

Yes you could gamble and go for a tracker but you could win or lose, and you could lose big. Most people are better off with some certainty.

Difference is that going forward...when we come out the EU and the UK economy flourishes, in 5 or 6 years time we could see interest rates around 5%...and it's at that time that you'll benefit from being in this 10 year fixed rate.

We have almost exactly 10 years left on our mortgage and this is tempting as we will at least know exactly what our monthly payment will be for the remainder if our mortgage days..with no nasty surprises in the latter years.

Cold 2.39% Coventry BS

Were you around in the 90s? Believe me the situation then was a thousand times better for FTBs on low or modest incomes. From the mid 90s onward in the area where I grew up you could buy a three bedroom house for 39k which is now worth 200k. And interest rates weren't that high, the base rate was about 5 to 8%, i.e. pretty normal.

There's a lot of people out there who got onto the housing ladder in the 90s like that and in a very privileged position now. It simply wouldn't have been possible to do what they did now, it wouldn't have been possible even 10 or so years ago..

edit: actually many of those houses you could pick up cheap in the 90s have now been converted into several studio flats which cost around 80k-100k each. Therefore in some ways the properties now cost about 300k, almost a 10 fold increase. Try going up the ladder from the position of buying one of those flats.

Good. I'm on a +0.48% lifetime tracker with HSBC so lower = better.

"Don't Buy anything off HSBC they are moving out of the Uk" "HSBC Moves 840 UK Jobs To Overseas Sites". HSBC, which is Europe's biggest bank, currently employs more than 47,000 staff across the UK. Your stupidity is astounding.

All those posts about high interest rates and I moan about paying £3k to get out of my 4.89% 5 year fix, 11 months in to drop to 1.79%!

ridiculously tight controls to get a mortgage. avoid

Which ever poor poor soul decides to fix at 2.79% for ten year definitely does not see the complete GBP rate curve

5 year is at 0.28% and 8 year at 0.52%

Yeh, right. You are clearly more financially savvy than Mark Carney. Hmmm wonder why you are not the Governor of the Bank of England.

Some sensible comments on here, but what people often forget is that with low rates and low (if any) wage increases, something that is a financial stretch now will continue to be so for some while.

It would be so much better if houses were cheaper, interest rates higher, mortgages cost more and there was some wage inflation in the system.

This would allow people to have far more disposable income to spend in the wider economy after a few years rather than continual indebtedness to the bank.

There are other advantages too but the cretins in government and at the Bank of England continue to do everything they can to maintain high house prices. A national discgrace to be honest.

Nothing is for certain at the moment. Toss a coin.

​I really hope you're right, but the new clown at the BoE is actually talking about lowering it even further.

i would stay - not gonna go up in next few years, might even go down

I've just fixed with HSBC at 2.14% for a 5 year fix, it hasn't even gone through completely yet and the rate has already dropped

import prices going up = less disposal income

less disposal income = economic slow down

economic slow down = interest rates drop even further to compensate

I paid to get out of a 25 year fixed rate at 6%.
Paying the same monthly payments my mortgage will be paid off 10years earlier and I'll be saving 10s of thousands of £££.
Definitely do the maths and see what you could potentially save.

No good in having cheaper properties if you can't afford the repayments due to high interest rates like they were in the 90's unless of course you are a rich property developer who can afford to pay cash and therefore exploit those who can't afford to get on the housing ladder. Property prices are not all to do with interest rates, it also has to do with new build developers. I work in construction and know how the market works. Rising costs of land, materials adds cost to ALL new builds. The price of new builds drags up the second hand market. If costs didn't go up there would be little house price increase like it was from early 90's to late 90's. Construction works on cost + profit margin = selling price. Costs go up so does the house price. Simple as. Not forgetting as well the other leaches in the housing market inflating prices in order to raise their commission.

This looks like a good deal I am just unsure of how long to fix in the deal.

the 0.99 2 year fix deal with HSBC looks very appealing but does require a significant amount of equity in a property.

Generally speaking I see lots of people suggesting to fix in for 5 years at least. I just wish there was a deal for 0.99 for 5 years :smiley:

You paid 15% like me then?

15 year fixed at 6.2 in 2004 my heart bleeds for both of you....

​for a 5yr fix? what LTV?

Gutted for you.

Ah a building society. What a novel concept.

currently just remortgaged on 1.79% 2 year fixed with Leeds Building society..

Thats from May, latest is confirmation from last week from HSBC.

Except the GBP dropped like a stone during the global financial crisis and interest rates only went in one direction - down. Already Mark Carney is hinting at lower rates.

You check your facts Gobby
HSBC Moves 840 UK Jobs To Overseas Sites
http://news.sky.com/story/hsbc-moves-840-uk-jobs-to-overseas-sites-10284577

Tbh I'm just waiting for the world to go all mad max on us now. Buy any hotukdeals dog whistle posts you see, never know if you'll end up in that thunderdome.

naomipinkclan is spot on with this statement

Pound falling... Imports get more expensive. Stokes UK inflation... BOE monetary objective to control inflation-> interest rate will go up.

Pound falling will add £100+ a month to everyone costs in Fuel and Food alone in price rises.

Inflation will be out of control and interests will HAVE to rise to control.

Dose of inflation will be good for those with Debt and the debt in theory will devalue..

10 Yr Fixed is Sexy!

Makes little difference .. Mrs May will backslide on every promise , of course we will have freedom of movement , because of "essential immigration needs" nothing more will be paid into the nhs, it's all just a game .. The poor will get poorer the rich will get richer . The "degreeless" electorate have chucked a spanner in the works .. Thanks to Cameron's vanity and Tory divisions . Anyhow doesn't bother me I drink cheap beer in weatherspoons.

Their problems are more deep rooted in corruption within their own countries. The EU isn't quite as all encompassing as people made it out to be! Personally I want the EU trimmed and reversed to the basic principles of free movement of goods, people capital with the best bits like common standards, banking rules, environment standards retained. Bin the rest.

Also an extra 20p off your mortgage with quidco and another 11p off if you use a Russian vpn to apply for your mortgage online

Just got a fixed 1.8% with halifax....maybe I should have seen what the longest term they offered was.

Part of the reason properties are so expensive are the low rates which are a sticking plaster to the real issue, not enough housing. If we had kept up with house building (or reduced housing demand) then there would not be an under supply. That would mean rates could be higher with little difference on peoples chances of owning a house and persuade people to save instead (which is useful for the next recession). We all should be taking a bit of responsibility for our retirements anyway in my opinion as by the time I get there we will probably not as a country be able to afford as much state sponsored care due to ageing population. Right now let's get building and break up those housing monopolies!

​what a load of rubbish. have untrest rates gone up since 2009 crash NO only down pal. Look at japans intrest over the last 15 year. interest rates will stay below 1% for next 10 year

These are where mortgage rates should be. Forget other loans, mortgages should always be a low rate. How on earth do you expect young people to get on the housing market and away from the rental market or their parents. As for interest on savings you are better doing other things with your money. Just remember that none of us want to be old and skint but if you find yourself being old and needing adult social care then if you have too much money then social services will make you pay and take it off you. Better to save a little and spend a lot. Spend it on yourself. Spend it on your children. Spend it on your grandchildren and enjoy the benefit now instead of giving it back to your local council like my dad is having to do. He saved his money and paid into a decent work pension and now he is on his own and needs care in his own home it is costing him dearly.

Our economy has been growing since 2012.

https://next.ft.com/content/8f894a32-3ca5-11e6-8716-a4a71e8140b0

We lost our AAA rating in 2013.....

It's hardly a fair comparison, Greece and Spain are net recipients of EU funds, we contribute to it.

Carny is talking about printing hundreds of billions of pounds to 'stabalise the economy'. At this rate, we could owe our entire GDP in a few years, worse still with our economy in recession and the cost of servicing this debt increasing as our credit worthiness takes a big hit, it's hard to paint a rosy picture. Yes we could be approaching the dangerous GDP to debt ratios of a countries Spain or Greece precisely because of the outcome of the EU referendum.

The irony is we'll probably still have freedom of movement. In fact maybe it's the one thing which may help to keep our economy afloat especially if it means we get preferential access to the single market.

its not a big one.. only £30 a month interest.

I also changed my deal to the same 1.79% 2 year fix and no fee with Santander. I felt that rates would stay low but hard to predict what will be available in 2 years

youre welcome .. Interesting point that the youth of the U.K. Reckon their future is ruined by brexit . Care to take an opinion poll with the youth of Greece , Spain and Italy to see what a fully integrated EU has done to their future .

I wish this deal had been around when I was in my 20s! HOT

Why would you move from that rate?
I would consider if they continued down

I just did a 5 year fix at 2.24

May work out cheaper to pay early repayment charge and go on to a cheaper fix

I have a tracker.. 1% above base for life.. should I switch it to this lol.. hmmmm..

Same here. Cheshire mortgage 5.84 % 10 years finishes in April, however after all that i am paying an early redemption penalty as my sale goes through next month :disappointed:

Negative equity is only not a problem if youve got a sensible deposit and plan to stay a while, if you only have 10% and your house price drops lower then when your mortgage is up you wont be able to remortgage!

If you have a place in mind, have a secure income and the mortgage is affordable then it's an attractive deal.

People try their best to avoid becoming the bears of the market, sadly though many people think house prices can only go in one direction, however there's nothing nice about seeing yourself go into negative equity just because you wanted a decent home to live in but even if you did, it's not the end of the world if you plan on staying there for a long while.

would this be good for a first time buyer , I'm clueless tbh I've searched the internet and visited the banks I trust you lot more than I trust them (bankers)

Until they go negative.

Carny has already said he'll probably lower rates further in August and ZIRP and NIRP are being looked at seriously going forward.

Frankly I think this is a bad time to get a mortgage, what with interest rates possibly going down very soon and also a generally negative outlook in the housing market for a variety of reasons. I'd give it a year.

This is the internet you know, you don't have to ask. :wink:

Lifetime trackers are also good at this time. my one's Santander and is 1% above inflation @ 2.49%. Its fee-free to switch to it, and you can jump ship whenever you like and choose a better fixed rate for no exit fee, also there's no limits to overpaying as much as you like.

So no commitments: you use it for as long as it works for you then get rid of it for Free when it doesn't work. Ace!

Things are going to get bumpy - maybe low interest rates for another year the who knows - 10 years for avoiding them is definitely a good idea

Coventry Building Society are supposed to be launching a 10 year fix at 2.39% tomorrow (only for 50% LTV though)

I took a fee free lifetime tracker at 0.89% above base rate in October 2008, 4 months later it had dropped from 5.89% to 1.39%. Got lucky, was going to take a fixed 2 year but the advisor recommended the tracker, owe that man a beer.
I think this is a decent deal, the first direct one disappeared quickly last time.

The governor of the BoE expressed deep concern about the level of private debt in the economy. His solution? Print billions of pounds of money, give it to the banks so they can increase levels of private debt further and .... 'keep the economy going'.

It doesn't take a genius to work out where this is heading.

Interestingly if he wanted to get rid of a lot of this private debt, there is one thing he could do. Raise rates and let nature take its course. It wouldn't be pretty but less painful in the long run. We cannot go on like this forever.

Ah yes and, higher interest rates, much less demand which should put downward pressure on house prices. Great news for many of us stuck renting who want to get on the housing ladder.

Just exchanged for a new house, losing out £50 a month because of this :'(

You sound like an intelligent sort, definitely not trolling at all. Out of interest what currency did you leverage against? having been in FX for 10 years unless you were holding a long position in one of the other exchanges I very, very much doubt even a financial demigod like yourself would have speculated against a GBP surge as before the markets closed it was approximately a 10-1 odds on favourite to remain. However, really nice money for you might just mean you found some old dollars from a trip to Florida and they are now worth 10p on the dollar more.

Yeah my valuation is taking place Saturday, also if your not aware their home insurance is really cheap especially if you get a quote online. Buildings and contents for mine was £20 a month, only place cheaper for me was admiral

8 months ago i got a 2.6 ish fixed for 2 years as was hoping to pay a large amount of my balance off in that time. And was pretty happy with that, at the time the market was looking like it could pick up, but now with the current outlook its been bettered.

Thing is, in times of uncertainty then pick certainty. If you can afford this payment now, and you havent been a muppet and overstretched yourself repayments wise, then you can afford this in 10 years.

Rates can go up, or down (but not by much!) so my best advise is choose this (or a similar tenor deal) and have peace of mind for what are the worst years of a mortgage easily.

​Peace of mind is priceless to me.

What is a mortgage?

​LOL, are we feeling a tad bitter there by any chance? What really makes me laugh about moronic comments like this is the fact that you want to have a poke at a demographic that actually got up and voted for what they believe in (whichever way they voted), instead of having a poke at your own demographic where apparently two thirds of them couldn't even be bothered to go and vote. Especially when they likely would have swung the vote.

But you keep blaming it on 'old' people eh

Ah man - I just got a new ten year deal in January :disappointed: this is a much better rate.

At my age, if I apply for a product like this I always get told I can't afford a cheaper mortgage!

Hi - I have one of those as well - quite happy to stick with it rather than pay any fee's

Anyone in a current fixed rate mortgage with HSBC called them and tried to switch? Sorry if this has already been talked about but from a quick scan I couldn't see anything and I am at work, so don't have time to check properly.

you might be better off waiting for a few months for house prices to crash a bit due to brexit?
They have already crashed by 15% just on the currency value alone..

btw I have to thank you all the sheep who voted to exit and fuked up this country, as I made really nice money doing super high-leverage betting against pound before the voting as I kinda knew that this sheep country will fall for it :wink: Specially ''Good Job'' you all Old people who voted to exit..

Good to know! They're doing an evaluation for me on the 12th so should be good to go after that. First Direct have been such a mess around when I applied. I had to do an application twice as there was a mistake in the property value (£1k less then what I quoted them) so they said they had to do all the affordability crap again if though it was less than what I originally got accepted for.

​hsbc have been good to me so il continue supporting them. the issue with them is they don't tend to suffer fools too much: if your a good customer you get looked after well. if not, you don't.

same here, just got a Nationwide 5 year fixed mortgage, been so helpful over the phone and give £750 cashback once officially opened. Already moved my current account to them and zero regrets.

I saw the HSBC mortgage advisor yesterday! Current rates for 2 year fixed are 1.95% with both 75 and 80 LTV no fees for advance customers

This is a good deal but, let's face it, if the banks start offering great 10 year deals, you're probably gonna be better off getting a better rate, shorter deal, and then doing the same again when it expires. However, the banks can afford to gamble a bit more than we can, so you take your choice....... ;-)

The 20% will only be in London. Elsewhere you're only looking at 5%.
The property funds getting suspended is commercial property, this is an entirely different market to residential.

That's the consequences of having a PM panicking trying to keep his party together , with too much faith in his own ability , giving a referendum to people with an axe to grind ... Recipe for disaster . His only saviour being the "young" vote ..18-24, more of whom vote in the XFactor than bothered turning out for the referendum .

Nationwide have some good tracker deals - I've just signed one myself. First time buyer, 1.11% + BR at 15% deposit. £250 fee.

meh that 1.29 + BR isnt available anymore.

and i cant find this 10 yr deal either... i can only see max 5 yr fixed deals :-(

is it not worth it to get on their 1.29%+ base tracker mortgage?

it has no fixed term and so long as the base stays low, you can exit at any time without penalty as there's no barriers. yes there's a set up fee, but a grand in the scheme of things is nothing... :-/

I would hold fire on this if you have <50% LTV, supposedly Coventry BS are launching a 2.39% 10 year fix tomorrow (not sure on fees yet so may not necessarily be a better detail depending on how much you are borrowing). Also remains to be seen what will happen with base rate.

Also take into account the very likely collapse in UK house prices by about 20%......as highlighted by the growing list of property 'funds' that are getting suspended by the hour.
If they put interest rates up, not only would it destroy consumer confidence instantly and blow UK household consumer debt, it also costs the country more to borrow AND increases the debt mountain.
The only place interest rates are going is down....along with the overvalued and overhyped UK property market....which in the long run will be a very good thing for the economy, cheaper homes, cheaper mortgages and most importantly, cheaper rents.

Ah you must be referencing that non existent period of history where interest rates where held at less than a percent for nearly 8 years.

christ, it's probably worth getting a new deal, breaking that and paying the redemption fees!

Nice to hear Dave saved a few quid on the mortgage on his £3.5m house ..some good news for the millions on zero hour contracts and the deprived areas across the country.

I'm on the previous 1.4% + Base Rate for the life of the mortgage so 1.99% at the moment. Probably stay with that as I can't see them putting the base rate up any time soon and talk was even of lowering it this month.

Those in the know went into mostly cash a while ago. Releasing as much cash from their assets before the vote.


http://www.telegraph.co.uk/news/2016/06/27/david-and-samantha-cameron-took-out-new-mortgage-eight-days-befo/

Coventry will offer 10 year fixed for 2.39% from tomorrow. 50% LTV though and £999 booking fee.

Hard to know what to do for the best .. Cos 3 weeks ago Cameron and Osborne predicted a collapse of house prices ,high inflation , terrorists roaming our streets, then world war 3 ... Any cheap deals on Prozac?

The way I see it whatever the rate it's still better than renting, but of course you want to get the best rate you can. We were on 5%+ for our first house, but the house price was low at 105k. We sold that house approx 4 years later for 125k so 20k profit but had a penalty to get out of the crappy mortgage.

Then onto a 5yr fix at 2.89% currently. 4yrs of the fix remain. We are at around 70% LTV but currently overpay 300 a month as hoping to pay off in 15yrs as opposed to the 30yrs.

We might all die next year. I would urge everyone, rather than looking to get a better mortgage deal, to remortgage as soon as possible, release as much equity from your house as you can, buy an expensive holiday and take a drug overdose.

Hi Steve, My 10 year fix with Barclays ends in October. Were you offered the new rate or did you call and ask what was on offer to existing customers?

They wouldn't - has to be their own panel

This used to be the case but with how inflation rates are currently (and have been for far too long) I feel they won't mess too greatly with interest rates. That said, I don't think anyone expected us to seriously leave the EU :laughing: So expect the unexpected - take account of your risk tolerance and get professional advice before you plunge is all you can really do.

I think you'll find the rates will reduce next week....

With the pound so intensely devalued the bank might have to increase interest rates significantly to stabalise it. If I wanted a mortgage now, I'd fix. "Rates are never, ever, ever going up?" Don't be so sure.

this is going to sound dull but can you move from one provider to this?

Link?

I'm a first time buyer with a 15% deposit and I've just got myself a 2 year tracker at 1.64% with a £250 fee.

I can fix at any point during the deal & have unlimited overpayments. This is with Nationwide and I was originally going to go with First Direct. Nationwide have been an absolute joy to deal with compared to FD, so much infact I'm going to move my current account over to them.

Nationwide are doing a 5 year fix (no fee) at 2.29% if you have over 40% equity (I think)

A drop in interest rates only translates to a drop in your rate if your currently on a variable deal that tracks the Bank of England base rate. If the pound is weaker it is more likely domestic UK banks will benefit from higher loan rates from lenders themselves and thus rates for UK customers will go up on fixed and variable deals as they will have to pass the extra cost on, rates may go up regardless of a cut by the Bank of England. This a cracking deal. I took a ten year on 10% deposit with Barclays at 2.99% a year ago and jolly glad I did.

Exactly what I thought. But why does BOE send messages of almost 0% interest rates?
I miss the 7% LIBOR I was getting on a business account.

Hot for a (fairly) accessible 10yr fixed option, but there are better rates out there.

Well they are a global company, and since the leave camp seem to be telling others to f*** off, why shouldnt they do the same to us?

I choose the products and services based on the quality and value offered (both tangible and non-tangible), not what bit of a map they happen to reside in.

​Ouch..

​My rate is 3.29% and those rates dropped quite soon after. My previous rate was 4.49% which is why I fixed.
To get out my current deal is £5000 which will still be cheaper to pay and move to another deal but you got to have 5k available to do that.

Best advice so far!

When we come out of our 10 year fixed (another 9 to go!) we will have 3 years of payments left to make. Will look to fix that as well when it comes around. Peace of mind is a great thing!

​Wow and you haven't paid the penalty to exit. Tough call though, I know, you just didn't know if rates would have risen over the last few years. Only two years to go. May be worth looking into the early exit. Should be around 2% of loan value by now. Worth looking into imo

I went into a 10 yr fixed last summer at 3.04% and don't regret it at all.
Safe in the knowledge that as and when rates do change, it won't impact me at all.
Sure, I may be over-paying a little bit, but it eliminates any concern.

We are all nutters on here ... do not get mortgage advice from any of us!

Have a look at MSE

Guide

seems a good deal for hsbc (usually a big fee upfront) so i'll vote hot,
Personally I will stick to my hsbc tracker 1.5%+Base, unlimited overpayments and more of an incentive to overpay and get the mortgage to peanuts, if i had a big mortgage i'd definately consider.

base rate cut to 0.25% will only save an 1/8th on my current rate so not that inspiring but for some i'm sure it will be

Overall you are right that lower base rate is likely as they fear a recession. BOE will also overlook a consequent spike in inflation. The main reason for the currency move is anticipation of this rate cut. Cause and effect interact such that pushing down causes a spring to move up. Long term rates are harder to predict post Brexit. Enjoy an extra 0.25% cut while it lasts if you have a tracker. If you can delay a fixed deal expect to see better deals coming up. But what will we see in 2 or 3 years is anyone's guess.
I am not aware that BOE have power to manipulate currency using foreign reserves and would be very surprised to see that happen. I also don't agree that the cause of inflation will invalidate the means of control

Just to footnote my previous post. This is - in relative terms - an incredibly long rate that is being offered. Check and double check what the potential *exit fees* would be to switch banks or mortgage product. They could be hysterically high given the length of the term. Also remember to check the overpayment penalties and other hidden costs in a mortgage (if you're new to all this like I was recently).

The world economy was already in a tail spin with a dramatic reduction in Growth from China. Once the country has a stable Government with a Prime Minister in place, the market jitters will subside. I am at a loss relating to all the negative comments about the economy. A small dip in growth was always predicted post a Brexit vote as the markets adjusted to the UK living its life in total command of the future. The media are fantastic at painting a sensationalist picture, but life goes on and so does business with the EU and the world. Interest rates will stay low globally and not just because of Brexit! Folk are rightly thinking long-term about their mortgages, I wish the press also looked toward the future and not headline sensationalism. If I was thinking of a new mortgage, I'd wait a few months to see the economy settle down and interest rates slightly falling potentially.

No! No-one here can tell you if this is a good deal for you. I beg you not to take out a mortgage for tens if not hundreds of thousands of pounds for a significant proportion of your life based on the opinion of someone who was conceited enough to give you definite financial advice on here.

You can get free advice from mortgage brokers and banks who will at least look into your situation before offering advice. They may well have a bias towards certain products so it is normally worth speaking to a few to see where they agree.

For a low IQ cave man like me can some one explain this is a good deal or not?
Im looking at getting a mortgage soon but i dont understand the lingo used here "/
Super thanks

I didn't realise that soothsaying had become such a precise art... anyone posting that rates will or will not go up or down in future is either trolling, psychotic or more likely just thick.

A good starting point for things that you need to think about before deciding what mortgage might be best for you is the MSE section on mortgages here.

People who try and play the market will probably get stung at some point. If it's a good deal and affordable and will save you money NOW then fix in. This is a stonking deal. I fixed in with Nationwide for 10 years at 2.89% and have no regrets as with my overpayments I will be mortgage free in 7 1/2 years (down from 25 years at 5.68%) saving me somewhere in the region of 100k! You could fix and rates go up or down but so long as you saved money from your current deal you should be happy. People who hold out too long and get caught out

How short? 1 to 2 years max?

Very cheap, short term trackers that allow you to get out with low or no fees are IMHO the only way to go at the moment.

Utter rubbish. Please check your facts before making wild accusations.

Banks have done their calculations and although offer looks good obviously it's not

Do not go for this, very unlikely that rates will be any higher for next 10 years... Even if you work out a 10 year average vs 2.79%

If you don't want to support banks that are going to leave the UK then you arent going to have a very large pool of banks to choose from...

You sure?
http://www.theweek.co.uk/hsbc/63926/does-hsbcs-099-mortgage-rate-show-market-has-peaked

As a very recent first-time buyer, a cautionary note for anyone looking at this thinking it's a mustard deal. A mortgage is the biggest financial commitment you'll make. All advice on here whilst undoubtedly well intentioned is not advice for anyone personally. Get a mortgage advisor or speak to a bank directly who'll be able to advise you on the best course of action for your financial circumstances. We nearly made a silly mistake when getting our mortgage and glad we were diligent and did our research.

They will. Brexit will be cancelled by a second referendum once we all see how devastating the decision is to the economy. Its just going to get worse though in the interim.

It didn't. Confirmed mortgage term ends September and will go into the new rate. Not asked for any more money and LTV is 55%

Don't Buy anything off HSBC they are moving out of the Uk,,Tell them to go and run, Don't support companies like this

I took out a 5yr fix in 2012, with Nationwide at 3.89% (LTV 44%) - finally ends next May. Hopefully some decent deals around then

I posted the link earlier on

Given the age of your mortgage I assume it tracks BoE base rate rather then Santanders Base Rate? If so, don't be stupid, keep a firm hold of it. None of us will see a 1% above BoE tracker again unfortunately :/ I'd also look into the terms to see if you can keep that credit line open for longer, pull money back out/etc.

Given that it is a first mortgage, I am guessing that he will be borrowing to the hilt, will suddenly be faced with a slew of ongoing costs that he may or may not have had to contend with before, and would probably be very susceptible to any change in the rate upwards. In those circumstances, unless there is a known intent to move again with a short time span, I personally think a 5 year fixed period could be a very prudent thing to do, just to settle in to all the normal bills etc that will come with it. As long as they are aware of the caveats that go with whatever deal they choose.

EU imposed rules stated from April that existing customers must go through credit checks and affordability checks, so not sure how he/she got this.

its impossible to predict what interest rates are going to do though the next move will be down

with the falling pound it could be argued that this will cause an increase in inflation which may mean that interest rates have to go up in the future

however the world is now starting to go into a deflationary cycle therefore we may find that the increase in inflation in the uk will not be that great to cause an increase in interest rates

No, there is cost push inflation therefore trying to contract the demand wouldn't work.

Monetary policy through strengthening of the pound would be more appropriate by the BoE using foreign currency to buy GBP and improve the rate thereby dropping import prices.

Lower rates have already been eluded to by spectators and even the BoE itself in a veiled manner. Confidence will be knocked and so expansionary policy needs to be implemented. There's the risk of stagflation if it doesn't work but we'll have to wait and see.
In short we're currently swamped by uncertainty, which doesn't make a rate rise anytime soon on the cards.

Yes, 2.75% to 1.79% saving 1k a year

​are you existing customer?

The change in LTV from 80 to 75% is a great shout, but if you have a 25yr term the chances of a 5% balance reduction is really small, it would be more reliant on house price index.

On this, as a ftb, if you are looking at 25/30yrs, whatever the rate you choose, ask how much it would be with a year less term, it may surprise you and £20 a month save you a year of repayments.

There is a gamble with post types. You generally fix at a more expensive rate and so the gamble is you are paying extra today in the belief rates increase and your fix is then cheaper than market rates. The variable gamble is more obvious, you pay less today and it could go up in the future.

Most people fix first time round, not thinking of the gamble but wanting piece of mind. Fixes are so low at the moment that the pricing difference will be very low.

As a ftb I would look at the terms and conditions around future house moves on a fix, more so a 10yr. As you may find yourself trapped with one company, yes they will say it's portable, but you will be tied to that lender's policies and affordability model for that period. :wink:

I predict a riot...yes, I predict a riot :sunglasses:

That's correct, but often for that reason 'tracker' mortgages offer better value. Commonly you will see at least a 0.5 percent better interest on a tracker compared to the fixed version. I'd say if you are only doing a 2 year like me then I can't see the rate rising by that much in the next few years.

I wouldn't call it gambling

Also if you are on an 80 percent LTV (as an example), then 2 years may be long enough to get you to 75 percent LTV or better, opening up better deals for when you remortgage/add value.

Coventry Building Society revealed it is poised to launch a loan with a fixed rate of 2.39 per cent for a decade.
http://www.dailymail.co.uk/news/article-3677954/Race-offer-cheapest-10-year-mortgage-Watershed-moment-2-39-deal-launched.html

Renewed with Barclays yesterday

1.79% 2 year fix with no fees

And no credit checks, income approval or valuations, am happy with that

Looking to get my first mortgage in the coming year. Is general consensus that fixed rate is the safer option and variable is whether or not you want to gamble on the interest rates going up within your mortgage duration?

Looking at the post most people are on fixed rate.

Said some anonymous poster on an internet forum.

I still remember having a fixed rate of 12.75% and being glad!!

Just come out of my last fixed deal and have 7 years to go to finish the mortgage. Am going to fix the 7 years with any deal that comes out around 2 - 2.5% and will be glad. The peace of mind from knowing that it cannot go up is immense. There are times I've won and times I've lost, but I've never had to worry about what "might" happen, and that peace of mind to me is priceless.

Has anyone actually found this deal on the website?

​that's how it is supposed to work but that didn't happen last time. inflation was going up and up but the interest rates stayed low.

and if everything gets more expensive, people will worry, that will trigger a recession. So lower the interest rate will give the normal person more money in their pocket.

Think I will stick & wait for the .25% drop & possible a drop to 0% may even be on the cards.

Hmm tempted to switch to this one. I currently have an agreement for a 10 year fix TSB morrtgage at 2.99%. Anyone know how much a valuation survey costs from HSBC??

Edit: Found it... https://www.hsbc.co.uk/1/2/mortgages/mortgage-fees-itemised#valuationfeescale Only worth my while if they'd accept my TSB valuation.

Just look at your own situation, will you move within the 10 years? - is it portable? I personally think 10 years is too long for anyone to plan for, what if you separate- what is the early penalty charge? 2-5years gives more control and flexibility to plan. Each to their own, I guess if you are later in life and only have 10 years to go on your mortgage it would seem a great deal.

yeah i wouldn't bank on the rate staying low because as said above with the pound falling so sharply the rate has to go up. It would be a smart move i think if you don't plan on moving house etc in the next 10 years.

I always look at these deals and wonder if I should change mine - i have been on the same rate for approx 10years now with only 10 years left - 1% above base rate for life - Santander -but this seems to be a good deal for some better than some posts anyways

Pound falling... Imports get more expensive. Stokes UK inflation... BOE monetary objective to control inflation-> interest rate will go up.

I'm halfway through a 2 year deal at 1.49% with HSBC. It would be interesting what new 2 year deals are offered to HSBC Advance customers in the coming months. I would definitely prefer to go with a 2 year deal at 0.99% as opposed to a 10 year deal.

Im on a 2.29% tracker with HSBC. Don't know whether to fix or stay and see if base rate drops

post office mortgages have a 5yr fixed at 2.38% with no arrangement fee.

I paid HSBC £1500 for a ten year fix rate in 2010... :smiley:

I think I took something similar with HSBC, plus a £1000 booking fee :stuck_out_tongue:

Sour grapes £2 a punnet in sainsbury

Depending on your outstanding and penalty, perhaps you could be better off paying the penalty and take a new mortgage.

There will be a day when the Bank of England money printing machine runs out of ink - on that day be very afraid !

We are living in a time of fantasy interest rates which will come to an end with a bang - history never lies !

Currently looking at taking a 5 year fix at 2.63%, not sure if it's worth committing to the ten but will see what happens after 14 July.

Found it now - link is here...https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004045193000000000000000000

I'm unfortunately locked into a 5 year fix with 3 more years left, this was just before the rates became cheaper.

I personally wouldn't do a long term fixed deal anymore.

I've been approved 5year virgin at 2.19% not taken it out yet but I think it's a decent deal. About to move in 2 weeks so too late to start on with another one. I'm a chicken so always fix in.

Can't argue with that rate for such a long time and no fees to sting you! I often wonder whether we will see rates go up again back to more sensible levels, can't be good to get people addicted to cheap debt and can't be good for savers either.

Thanks to Brexit it looks like base rate is going to stay low for longer than we thought!
I wonder how much of that 10 year period would actually be above 0.25/0.5%
It's a gamble either way at the moment it all depends on whether you're risk tolerant or risk averse. Big wins/losses if you get it wrong though, increasingly so the higher the loan amount.