Mortgage interest rates?
Discussion
Quite normal. Mortgage companies are just trying to claw back as much dosh as they can. Usually has no correlation (sp) to bank base rates, it's stayed the same for the last two updates I think.
Can you get out of it?
I took out a five year fixed with no fee at 5.4% in 2008 and I thought that was a bit of a stichup, but I know rates will start to get really silly for the reasons stated above.
They are f
kers.
Can you get out of it?
I took out a five year fixed with no fee at 5.4% in 2008 and I thought that was a bit of a stichup, but I know rates will start to get really silly for the reasons stated above.
They are f
kers.T66ORA said:
Need to pick the brains of the PH massive, for the second time in 4 months our mortgage provider has increased our rate, we are on a SVR, it is now 4.7%
My question is this normal? Are you having your rates pushed up for no reason, or are we just with a crap company?
Who are you with?My question is this normal? Are you having your rates pushed up for no reason, or are we just with a crap company?
gazd83 said:
Hi, you may have had your question answered but just to let you know that unfortunately lenders can change their SVR whenever they see fit. Literally every week if necessary. (although highly unlikely due to publicity and the work involved)
Regards.
What, striking some keys on a keyboard at a workstation? Sounds like every other day at work in a bank/building society. Beyond needing a presumably restricted access code, I find it difficult to believe that the software in question would require anything more involved/time consuming. If it is, it's time to change software provider...Regards.
hidetheelephants said:
gazd83 said:
Hi, you may have had your question answered but just to let you know that unfortunately lenders can change their SVR whenever they see fit. Literally every week if necessary. (although highly unlikely due to publicity and the work involved)
Regards.
What, striking some keys on a keyboard at a workstation? Sounds like every other day at work in a bank/building society. Beyond needing a presumably restricted access code, I find it difficult to believe that the software in question would require anything more involved/time consuming. If it is, it's time to change software provider...Regards.
gazd83 said:
hidetheelephants said:
gazd83 said:
Hi, you may have had your question answered but just to let you know that unfortunately lenders can change their SVR whenever they see fit. Literally every week if necessary. (although highly unlikely due to publicity and the work involved)
Regards.
What, striking some keys on a keyboard at a workstation? Sounds like every other day at work in a bank/building society. Beyond needing a presumably restricted access code, I find it difficult to believe that the software in question would require anything more involved/time consuming. If it is, it's time to change software provider...Regards.
The_Doc said:
I've got 0.75% above the BOE base rate for the term of my mortgage.
not gonna switch soon.
mines at 2.5%, just reverted back a few months back after a fixed deal at 5.1% taken pre-crunch ran out - they did offer me some "good" fixed deals at 5.5 and 6% ....errrrr....I think I will take the gamble thanks and stick with SVR for now not gonna switch soon.
as others have said though - its like the credit cards, they can change it whenever they see fit...you get a letter in the post saying its gone up 1% and can do bugger all about it other than switch lenders
...imagine it in the late 80's when it hit 14%
My mortgage is with Nationwide and the largest chunk of it comes off fix at the end of the year.
I never really took much notice of the bit in the small print that said that their SVR would never be more than 2% above base rate - at least not until recently!
Only when I had a look at what fixed rates they are now offering did I then notice that they have removed that pledge in the past few months and that on expiry of fixed rate deals now you go onto a different variable rate (base mortgage rate?) which is about 1.5% higher than the "old" SVR. Cynical...
The branch mortgage saleswoman called me on Friday to try to get me to go in to talk about refixing. She got quite sniffy when I told her that there is little incentive at the moment to fix at anywhere between 5.8 and 7.5% depending on length of fix, and pay a fee of either £495 or £995, when I can drop onto the "old" SVR of 2.5%, pay no fee and overpay the mortgage as if the monthly payment hadn't dropped. They really do think that their customers are all mugs....
(I normally prefer the comfort of a known payment and so fix the mortgage - but I'm willing to take a punt this time, having re-fixed the other chunk 18 months ago at around 5.8% just before rates plummeted. Doh!)
I never really took much notice of the bit in the small print that said that their SVR would never be more than 2% above base rate - at least not until recently!
Only when I had a look at what fixed rates they are now offering did I then notice that they have removed that pledge in the past few months and that on expiry of fixed rate deals now you go onto a different variable rate (base mortgage rate?) which is about 1.5% higher than the "old" SVR. Cynical...
The branch mortgage saleswoman called me on Friday to try to get me to go in to talk about refixing. She got quite sniffy when I told her that there is little incentive at the moment to fix at anywhere between 5.8 and 7.5% depending on length of fix, and pay a fee of either £495 or £995, when I can drop onto the "old" SVR of 2.5%, pay no fee and overpay the mortgage as if the monthly payment hadn't dropped. They really do think that their customers are all mugs....
(I normally prefer the comfort of a known payment and so fix the mortgage - but I'm willing to take a punt this time, having re-fixed the other chunk 18 months ago at around 5.8% just before rates plummeted. Doh!)
Lurking Lawyer said:
I never really took much notice of the bit in the small print that said that their SVR would never be more than 2% above base rate - at least not until recently!
Only when I had a look at what fixed rates they are now offering did I then notice that they have removed that pledge in the past few months and that on expiry of fixed rate deals now you go onto a different variable rate (base mortgage rate?) which is about 1.5% higher than the "old" SVR. Cynical...
Nationwide, like everyone else, didnt expect rates to go the point where the 2% promise was a problem. They must have a massive book of people in exactly the same boat as you. Now they should be funding that at a pretty good level, but they have said the lack of remortgaging is hurting them. Only when I had a look at what fixed rates they are now offering did I then notice that they have removed that pledge in the past few months and that on expiry of fixed rate deals now you go onto a different variable rate (base mortgage rate?) which is about 1.5% higher than the "old" SVR. Cynical...
One thinktank forecast interest rates to stay at around 0.5% until 2011, and then be no higher than 2% until 2014 today.......
I saw the same CEBR report, Alex - which was welcome reading indeed in light of what I've said above about reverting to Nationwide's SVR.
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
Lurking Lawyer said:
I saw the same CEBR report, Alex - which was welcome reading indeed in light of what I've said above about reverting to Nationwide's SVR.
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am with you.I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am also hoping that the ridiculous spread (difference between current fixes and base rate) reduces over time as the banks recapitalise.
Pre-crunch the spread was almost zero (i.e. you could fix for a couple of years at close to the base rate of the time).
Now it is close to 5% (i.e. base rate at 0.5% and many fixes at 5.5%+)!!!!
walm said:
Lurking Lawyer said:
I saw the same CEBR report, Alex - which was welcome reading indeed in light of what I've said above about reverting to Nationwide's SVR.
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am with you.I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am also hoping that the ridiculous spread (difference between current fixes and base rate) reduces over time as the banks recapitalise.
Pre-crunch the spread was almost zero (i.e. you could fix for a couple of years at close to the base rate of the time).
Now it is close to 5% (i.e. base rate at 0.5% and many fixes at 5.5%+)!!!!
NoelWatson said:
walm said:
Lurking Lawyer said:
I saw the same CEBR report, Alex - which was welcome reading indeed in light of what I've said above about reverting to Nationwide's SVR.
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am with you.I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am also hoping that the ridiculous spread (difference between current fixes and base rate) reduces over time as the banks recapitalise.
Pre-crunch the spread was almost zero (i.e. you could fix for a couple of years at close to the base rate of the time).
Now it is close to 5% (i.e. base rate at 0.5% and many fixes at 5.5%+)!!!!
Other than a brief period of inversion, the yield curve pretty much always looks like it does today.
That's why I am saying the spread is high. Vs. history it's high for swaps or base, either way you look at it.
I know I can get base + X% floating forever OR today's base plus Y% fixed for however long. The math is simply which is cheaper depending on your view on where the base rate goes.
However, if you are worried about when to fix then you need to worry about X and Y too.
That's all I am saying.
walm said:
NoelWatson said:
walm said:
Lurking Lawyer said:
I saw the same CEBR report, Alex - which was welcome reading indeed in light of what I've said above about reverting to Nationwide's SVR.
I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am with you.I know it's all crystal ball gazing, but I'm prepared to take the risk that they go up and that I have to fix at a rate higher than I could fix at now. But they'd have to go up by quite a lot to come anywhere near what it would cost me to fix at present!
I am also hoping that the ridiculous spread (difference between current fixes and base rate) reduces over time as the banks recapitalise.
Pre-crunch the spread was almost zero (i.e. you could fix for a couple of years at close to the base rate of the time).
Now it is close to 5% (i.e. base rate at 0.5% and many fixes at 5.5%+)!!!!
[quote]
No, I'm saying you should be looking at swap rates if looking at fixes. Just looked at the data (only back to 1990) and the historical average spread between base and 5Y swap rate is 1.95 and is currently 2.59. It would be good to know the historical spread between 5Y swap and average 5Y fix (for a given LTV) - not sure how to get this data.
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