Current Mortgages Offers

[SK1NT]

I work for a broker firm. If you havent gone to one already, you should.

PM me if you want a number.

Hey thx... Had a few private messages to work on.. so thx guys

As above, you should be offered more like 5 times. Have you been to a broker?

Yea been a to two mortgage advisors... not sure if these are the same

Sorry - I was just pointing out that offering people 5x the salary was (one of many) an issue that got some people in to positions of difficulty. I don't have the answer for you....

Yea defo... but i think more the 100% mortgage and selt cert mortgages that were like 8 times a salary were the killers

Mortgages are a nightmare. Despite a solid 5 year of earning history, they still don't care and just look at 'basic' salary, they also don't consider any circumstance and stick to what the computer says. The funny thing is, if I didn't buy, similar property to rent is at least equal to the equivalent monthly mortgage payments anyway!! Go figure...

Exactly this... 10 yea fixed steady salary.. of which half covers the mortgage not ideal but still not hard... They dont looking into any other info... just salary isnt 3.5 times the mortgage so laters... No wonder the housing market is in a rut

Thanks guys for all advice...

 

[Uncle Spielberg]

This is the situation.

A few lenders will consider 5 x income with a clean and very good credit profile and a 25% deposit.

Interest only is getting very hard to obtain with some lenders refusing to allow over 50% on interest only even with a clear repayment strategy. This means anything over this you will HAVE to do repayment regardless.

Lenders are now pissed off with the " emergency " base rate of 0.5% and charging historically low variable and tracker rates. Expect all lenders to increase their variable rate with the Halifax and Nat West leading the way and the Bank of Ireland increasing their svr by 1.5%.

The real winners are the C&G and Nationwide borrowers whereby they hamstrung themselves with a guarantee their svr would not be over 2% above BBR. A decision made in 2007 with Bank base rate at 5.75% and no expectation that it would fall below 5% at the time. A decision they bitterly regret and those linked to BOR tracker rates for lifetime. I have several clients on this who have saved tens of thousands of pounds in the last 3 years.

The mortgage market is becoming one for the priviledged few. The growth area is buy to let and with so many ftb's not able to by or fts's not able to sell and move on, the rental market is thriving and the landscape has changed. We will become like the European norm with 70% of people renting within 10 years , not because they want to but because they have no choice. There will be fat cat landlords with protfolio's of buy to lets.

When people want to get a mortgage or re mortgage I believe 8 out of 10 people wil not be able to because of the changes in criteria. They will become mortgage prisoners paying whatever their lender wants on their svr. Self employed, self cert, ltv over 75%, any adverse credit and people with an interest only mortgage.

It was probably too easy from 2005-2007 to get a mortgage but now it is far too hard. Lenders are totally risk adverse and with European and UK directives to hold more money in reserve are very very picky who they will lend to.

Fixed rates and tracker rates have gone up across the board all year and now svr's. The cost of borrowing money for the lenders has gone up considerably and the BOE base rate is becoming irrelevant. Lenders want to build up reserves after the financial hurricane of the last 4-5 years.

Most people do not realise the situation as they have been in a false sense of security paying a low rate and expecting this will remain forever as it has for the last 3 years. An unhealty situation as people have become used to paying diddly squat on their mortgage, the lowest in real terms in history.

 

[Springal]

Sorry to bounce this. I have about 87% LTV (original, when taken out 4 years ago) on my property, can drop this down to 80% if needed. However my current provider, seems to have taken off all their competitive deals (3.55% and then 3.85% withdrawn) and now just offering me 3.95% + £799 product fee for 2 years, even though the SVR is 4%. It seems a bit silly to pay the £799 for 2 years fixed, when gambling on the SVR could be fine for a while? Are we likely to see these rates going back down at any point soon, or should I be fixing at 3.95% for the security? All of this seems very short term + expensive just do so?

 

[CheeseRolls]

Sorry to bounce this. I have about 87% LTV (original, when taken out 4 years ago) on my property, can drop this down to 80% if needed. However my current provider, seems to have taken off all their competitive deals (3.55% and then 3.85% withdrawn) and now just offering me 3.95% + £799 product fee for 2 years, even though the SVR is 4%. It seems a bit silly to pay the £799 for 2 years fixed, when gambling on the SVR could be fine for a while? Are we likely to see these rates going back down at any point soon, or should I be fixing at 3.95% for the security? All of this seems very short term + expensive just do so?

I am no expert, but my guess is that base rates at least will not shift much in two years. If you can afford to pay 3.95% why not find the best deal you can, check there is no penalty for overpayment and then pay monthly what you would have paid at the higher rate. This will pay off more of your capital but also provide a buffer, if rates then do increase.

 

[Springal]

I am no expert, but my guess is that base rates at least will not shift much in two years. If you can afford to pay 3.95% why not find the best deal you can, check there is no penalty for overpayment and then pay monthly what you would have paid at the higher rate. This will pay off more of your capital but also provide a buffer, if rates then do increase.

For ease (and fear of doing a new valuation - estate agent reckons propertly probably worth £15k less than I bought it) I want to stick with current provider. There is a base rate tracker at +3.19%, which might also be attractive. I am over paying about £60 a month at present, and 'could' stand the repayment going up £100 or so if they did. The market seems to change so much, it is difficult to keep track!

 

[Weststander]

Thats because thats the BoE short term loan rate and the banks dont get their money from the BoE, they get it from other banks, investors and depositors. they create this confusion by tieing their rates to the BoE rate, but the amount that it differs can change so its really pretty meaningless.

This, and from the money markets too.

BoE rates are not directly relevant to open market mortgage rates.

 

[cloud]

I can recommend the broker that I have just used, Just Remortgages. They were thoroughly professional and got me a very good deal.

 

[The Maharajah of Sydney]

Sorry to bounce this. I have about 87% LTV (original, when taken out 4 years ago) on my property, can drop this down to 80% if needed. However my current provider, seems to have taken off all their competitive deals (3.55% and then 3.85% withdrawn) and now just offering me 3.95% + £799 product fee for 2 years, even though the SVR is 4%. It seems a bit silly to pay the £799 for 2 years fixed, when gambling on the SVR could be fine for a while? Are we likely to see these rates going back down at any point soon, or should I be fixing at 3.95% for the security? All of this seems very short term + expensive just do so?

June 2014 Short Sterling (3 month money) currently trading around 98.73 , equating to an inverse yield of 1.27% Further out , March 2016 is at 98.13 (1.87 %) .
And be aware , whilst it might seem unlikely to you, these rates could move lower as well as higher .

THREE MONTH STERLING (SHORT STERLING) FUTURES | Global Derivatives


Prices as of 08 May 2012 15:11 CET

Delivery Open High Low Last Change Settle Volume Open Interest
May 2012 0.00 0.00 0.00 0.00 N/A N/A 0 0
Jun 2012 98.99 99.01 98.99 98.99 N/A N/A 13386 231826
Jul 2012 0.00 0.00 0.00 0.00 N/A N/A 0 0
Sep 2012 98.99 99.00 98.98 98.99 N/A N/A 29450 314200
Dec 2012 98.97 99.00 98.97 98.99 N/A N/A 28832 247885
Mar 2013 98.97 99.00 98.97 98.99 N/A N/A 36353 231444
Jun 2013 98.95 98.98 98.94 98.97 N/A N/A 34065 241738
Sep 2013 98.90 98.94 98.90 98.93 N/A N/A 30634 241256
Dec 2013 98.84 98.88 98.83 98.87 N/A N/A 32279 147727
Mar 2014 98.78 98.82 98.77 98.81 N/A N/A 27316 159680
Jun 2014 98.69 98.74 98.69 98.73 N/A N/A 15827 138180
Sep 2014 98.61 98.66 98.61 98.65 N/A N/A 11075 126515
Dec 2014 98.52 98.57 98.52 98.57 N/A N/A 10499 91180
Mar 2015 98.46 98.50 98.46 98.50 N/A N/A 5810 55118
Jun 2015 98.38 98.40 98.37 98.40 N/A N/A 1851 5003
Sep 2015 98.29 98.31 98.29 98.30 N/A N/A 155 4624
Dec 2015 98.20 98.22 98.20 98.21 N/A N/A 140 3259
Mar 2016 98.14 98.14 98.13 98.13 N/A N/A 26 714
Jun 2016 0.00 0.00 0.00 0.00 N/A N/A 0 15
Sep 2016 0.00 0.00 0.00 0.00 N/A N/A 0 0
Dec 2016 0.00 0.00 0.00 0.00 N/A N/A 0 0
Mar 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Jun 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Sep 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Dec 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Mar 2018 0.00 0.00 0.00 0.00 N/A N/A 0 0
Total: 277698 2240364

 

[Cadiz Seagull]

Release the equity, stick it on BLACK and let it ride for 2 spins. You'll be mortgage free in about 2 minutes!

You shouldn't consider this as financial advice. I'm no IFA.

No, really.

Speaking as an ex-mortgage broker that is the most RIDICULOUS advice I have EVER heard.

You are the sort of broker who gives the profession a bad name. You should be ashamed of yourself and banned from EVER giving mortgage advice again.

We all know - except you, it seems - that the correct advice would be to put it on red.

 

[ditchy]

My mortgage is currently interest only and has gone over to the SVR (Standard Variable Rate) due to the term ending a few weeks ago. It has gone from 1.99% above the base rate tracker to 4.99%.

I am having an absolute ballache trying to get a new mortgage because 3.5 times my wages does not cover the mortgage... The flat has 50k equity and i need a mortgage of 150k.... i would have thought that with 25% equity id be able to pick the deal i want... on the contrary no one will touch me... The only offers im getting are higher than the SVR...

I cant understand why the banks are continuing to screw everyone over by offering such shit offers when the bank of england base rate is 0.5%

With a base rathe like that you'd expect at worst the ave mortgage offers to be 3.5%

And what about the people who were initially given mortgages and lost the equity in their property due to the house price drop and got a self cert mortgage so 3.5 times their wages are nowhewre near the mortgage required... what happens to these people?

I think that this 3.5 times should be 5 times as i think it is easy to set aside half your monthly wage on a mortgage.... it's not possible for the average person to have a new mortgage for less than a quater of your wage...

Every month seems like too much of a struggle and i only own a poxy tiny one bed flat... and i appracite i am still one of the lucky ones to be on the property ladder....

Just seems like the poor keep getting screwed... If i was earning 75k a year i'd easily be offered a mortgage for 2%

Your two biggest problems are 1 you want more than 3.5times your earnings 2 intrest only mortgage . The fact that you have 50K equity or 25% deposit is not an issue as you are deemed not able to afford it by the current models they run. Also with interest only back in the good old days they were happy to lend in the knowledge that your property would be worth more than the mortgage in X years. Sadly that is no longer the case ,so they now ask for an investment vehicle to pay back the capital that you have borrowed. This can be an isa ,pension or an endowment , but sadly you can no longer say that you will down size in later years and pay back the difference when you sell.
Your best bet would be to see a mortgage broker , they will no doubt charge and will try and sell you all sorts of life cover , but they should be able to get you a better rate than you have .

 

[Moshe Gariani]

June 2014 Short Sterling (3 month money) currently trading around 98.73 , equating to an inverse yield of 1.27% Further out , March 2016 is at 98.13 (1.87 %) .
And be aware , whilst it might seem unlikely to you, these rates could move lower as well as higher .

THREE MONTH STERLING (SHORT STERLING) FUTURES | Global Derivatives


Prices as of 08 May 2012 15:11 CET

Delivery Open High Low Last Change Settle Volume Open Interest
May 2012 0.00 0.00 0.00 0.00 N/A N/A 0 0
Jun 2012 98.99 99.01 98.99 98.99 N/A N/A 13386 231826
Jul 2012 0.00 0.00 0.00 0.00 N/A N/A 0 0
Sep 2012 98.99 99.00 98.98 98.99 N/A N/A 29450 314200
Dec 2012 98.97 99.00 98.97 98.99 N/A N/A 28832 247885
Mar 2013 98.97 99.00 98.97 98.99 N/A N/A 36353 231444
Jun 2013 98.95 98.98 98.94 98.97 N/A N/A 34065 241738
Sep 2013 98.90 98.94 98.90 98.93 N/A N/A 30634 241256
Dec 2013 98.84 98.88 98.83 98.87 N/A N/A 32279 147727
Mar 2014 98.78 98.82 98.77 98.81 N/A N/A 27316 159680
Jun 2014 98.69 98.74 98.69 98.73 N/A N/A 15827 138180
Sep 2014 98.61 98.66 98.61 98.65 N/A N/A 11075 126515
Dec 2014 98.52 98.57 98.52 98.57 N/A N/A 10499 91180
Mar 2015 98.46 98.50 98.46 98.50 N/A N/A 5810 55118
Jun 2015 98.38 98.40 98.37 98.40 N/A N/A 1851 5003
Sep 2015 98.29 98.31 98.29 98.30 N/A N/A 155 4624
Dec 2015 98.20 98.22 98.20 98.21 N/A N/A 140 3259
Mar 2016 98.14 98.14 98.13 98.13 N/A N/A 26 714
Jun 2016 0.00 0.00 0.00 0.00 N/A N/A 0 15
Sep 2016 0.00 0.00 0.00 0.00 N/A N/A 0 0
Dec 2016 0.00 0.00 0.00 0.00 N/A N/A 0 0
Mar 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Jun 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Sep 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Dec 2017 0.00 0.00 0.00 0.00 N/A N/A 0 0
Mar 2018 0.00 0.00 0.00 0.00 N/A N/A 0 0
Total: 277698 2240364

THIS...? The data for Sep 2016 onwards are particularly compelling...

 

[THE NOTORIOUS N]

This is the situation.

A few lenders will consider 5 x income with a clean and very good credit profile and a 25% deposit.

Interest only is getting very hard to obtain with some lenders refusing to allow over 50% on interest only even with a clear repayment strategy. This means anything over this you will HAVE to do repayment regardless.

Lenders are now pissed off with the " emergency " base rate of 0.5% and charging historically low variable and tracker rates. Expect all lenders to increase their variable rate with the Halifax and Nat West leading the way and the Bank of Ireland increasing their svr by 1.5%.

The real winners are the C&G and Nationwide borrowers whereby they hamstrung themselves with a guarantee their svr would not be over 2% above BBR. A decision made in 2007 with Bank base rate at 5.75% and no expectation that it would fall below 5% at the time. A decision they bitterly regret and those linked to BOR tracker rates for lifetime. I have several clients on this who have saved tens of thousands of pounds in the last 3 years.

The mortgage market is becoming one for the priviledged few. The growth area is buy to let and with so many ftb's not able to by or fts's not able to sell and move on, the rental market is thriving and the landscape has changed. We will become like the European norm with 70% of people renting within 10 years , not because they want to but because they have no choice. There will be fat cat landlords with protfolio's of buy to lets.

When people want to get a mortgage or re mortgage I believe 8 out of 10 people wil not be able to because of the changes in criteria. They will become mortgage prisoners paying whatever their lender wants on their svr. Self employed, self cert, ltv over 75%, any adverse credit and people with an interest only mortgage.

It was probably too easy from 2005-2007 to get a mortgage but now it is far too hard. Lenders are totally risk adverse and with European and UK directives to hold more money in reserve are very very picky who they will lend to.

Fixed rates and tracker rates have gone up across the board all year and now svr's. The cost of borrowing money for the lenders has gone up considerably and the BOE base rate is becoming irrelevant. Lenders want to build up reserves after the financial hurricane of the last 4-5 years.

Most people do not realise the situation as they have been in a false sense of security paying a low rate and expecting this will remain forever as it has for the last 3 years. An unhealty situation as people have become used to paying diddly squat on their mortgage, the lowest in real terms in history.

Interesting and thanks for the words of wisdom. I am currently with the C&G and have just come off a 5 year fixed deal, with the rate going from 5.09% to the SVR of 2.5%. Am I right in saying that this will only increase should the Bank of England increase the base rate then ??

 

[Beach Hut]

Interesting and thanks for the words of wisdom. I am currently with the C&G and have just come off a 5 year fixed deal, with the rate going from 5.09% to the SVR of 2.5%. Am I right in saying that this will only increase should the Bank of England increase the base rate then ??

Not from what I understand albeit not in the trade. The issue is the cost of borrowing money by banks has gone up and they are clawing back their profit this way.

 

[Uncle Spielberg]

Interesting and thanks for the words of wisdom. I am currently with the C&G and have just come off a 5 year fixed deal, with the rate going from 5.09% to the SVR of 2.5%. Am I right in saying that this will only increase should the Bank of England increase the base rate then ??

Yes.

 

[Uncle Spielberg]

Sorry to bounce this. I have about 87% LTV (original, when taken out 4 years ago) on my property, can drop this down to 80% if needed. However my current provider, seems to have taken off all their competitive deals (3.55% and then 3.85% withdrawn) and now just offering me 3.95% + £799 product fee for 2 years, even though the SVR is 4%. It seems a bit silly to pay the £799 for 2 years fixed, when gambling on the SVR could be fine for a while? Are we likely to see these rates going back down at any point soon, or should I be fixing at 3.95% for the security? All of this seems very short term + expensive just do so?

Generic

3.35% tracker 30/6/14 or 3.99% fixed 31/5/15.

 

[Simster]

Your two biggest problems are 1 you want more than 3.5times your earnings 2 intrest only mortgage . The fact that you have 50K equity or 25% deposit is not an issue as you are deemed not able to afford it by the current models they run. Also with interest only back in the good old days they were happy to lend in the knowledge that your property would be worth more than the mortgage in X years. Sadly that is no longer the case ,so they now ask for an investment vehicle to pay back the capital that you have borrowed. This can be an isa ,pension or an endowment , but sadly you can no longer say that you will down size in later years and pay back the difference when you sell.

In hindsight, it really was folly that lenders were ever allowed to lend on an interest only basis, on an assumption that house price rises would forever rise.

I've been affected by the new lending policies too - our mortgage is big, so we toyed with the idea of going part interest only, and paying it back at a quicker rate in a few years time, but our lender wouldn't entertain the idea.

Whilst I do feel for the OP, it must be said this policy is probably for the best in the long run. Hopefully it'll lead to a suppression of house price rises (rather than a fall) over the next decade or so, until prices are brought back into line with salaries.

 

[sjn]

who is your current lender?

 

[Alex Alex Dawson oo! oo!]

In hindsight, it really was folly that lenders were ever allowed to lend on an interest only basis, on an assumption that house price rises would forever rise.

I've been affected by the new lending policies too - our mortgage is big, so we toyed with the idea of going part interest only, and paying it back at a quicker rate in a few years time, but our lender wouldn't entertain the idea.

Whilst I do feel for the OP, it must be said this policy is probably for the best in the long run. Hopefully it'll lead to a suppression of house price rises (rather than a fall) over the next decade or so, until prices are brought back into line with salaries.

We were in a similar situation so re-mortgaged about 18m ago and currently have "split" IO/Repayment mortgages. Another key issue was to break the SVR link and fix to the BoE base rate as we anticipated the former would rise in the next 1-2 years irrespective of any MPC action; 'twas also the advice we received from US at the time (Ta again Gareth).

 

[HantsSeagull]

Sorry to bounce this. I have about 87% LTV (original, when taken out 4 years ago) on my property, can drop this down to 80% if needed. However my current provider, seems to have taken off all their competitive deals (3.55% and then 3.85% withdrawn) and now just offering me 3.95% + £799 product fee for 2 years, even though the SVR is 4%. It seems a bit silly to pay the £799 for 2 years fixed, when gambling on the SVR could be fine for a while? Are we likely to see these rates going back down at any point soon, or should I be fixing at 3.95% for the security? All of this seems very short term + expensive just do so?

there isnt any point in fixing for 2 years at 3.95% if SVR is 4% unless you think their SVR is likely to rise significantly in the next 2 years. given the state of the economy and the turmoil about to descend on europe, it seems unlikely to me that base rate will rise any time soon. this does not mean lenders wont increase their SVRs if they start to feel the pinch or cost of funds increase further.

if i was going to fix i would do it for 5 years depending on the rate, but i would probably just ride svr. assuming you are still at 85% ltv - that is not a bad two year rate they are offering. at 80% you could get 3.59% from ING.

 

[SK1NT]

Your two biggest problems are 1 you want more than 3.5times your earnings 2 intrest only mortgage . The fact that you have 50K equity or 25% deposit is not an issue as you are deemed not able to afford it by the current models they run. Also with interest only back in the good old days they were happy to lend in the knowledge that your property would be worth more than the mortgage in X years. Sadly that is no longer the case ,so they now ask for an investment vehicle to pay back the capital that you have borrowed. This can be an isa ,pension or an endowment , but sadly you can no longer say that you will down size in later years and pay back the difference when you sell.
Your best bet would be to see a mortgage broker , they will no doubt charge and will try and sell you all sorts of life cover , but they should be able to get you a better rate than you have .

I am after a repayment... but with 25% equity thought it'd be well eays top get a decent mortgage... but as you said the wages are now a factor even though i know i can pay it easily as my whole 7 years my mortgage has been half my monthly wage and thats fine as ive never known different.

Yes.

I thought on a SVR the banks had a right to change this when they want...

I had a superb 1.99% SVR but the wanker mortgage broke transferred me to a 3 years 1.99% only for the SVR to go to 5%.. He said my previous SVR was going to increase... hate the wanker...