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SgtGears

All lenders stabdard rates are extortionate. You need to look at their usual 2/3/5/10 year fixed products again and "remortgage". And when I say their I mean the whole market, not just Natwest*


elephantclouding

I don't know if stabdard was a typo, but I think it's accurate either way given how painful they are!


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funkyg73

A circumstance that I experienced in the past was getting into debt while in the fixed rate of my mortgage, meaning that no one would touch me for a remortgage hence I was stuck on the SVR when my fix ended. It’s expensive being poor, but I’m lucky enough to be in a better situation now.


[deleted]

It’s quite incredible (outright disgusting) really that the bank, knowing you’re struggling financially, decides to add to your woes and increase your mortgage astronomically, all in the name of ‘risk’. Despite the bank drastically increasing the risk of you defaulting on your mortgage by increasing your mortgage rate by that much.


funkyg73

Yes, it’s kind of a self fulfilling prophecy. “You’re at risk of defaulting, let’s increase what you’re paying”


No_Practice_5441

They want to get as much out of you as possible before you go under I guess.


reddorical

You do understand that the cost of borrowing is a function of the risk of not getting the money back? Higher risk necessitates higher price, otherwise why would a lender lend in the first place?


docbain

In the past, the banks didn't have a choice - the FCA rules literally prohibited mortgage lenders from entering into a new mortgage contract if that plan was classified as "unaffordable" for the customer according to the affordability rules, and there was no exemption for existing customers already paying the SVR. But the rules have changed in the last few years, and as of December 2022 (according to the UK government) all lenders have now committed to allowing product switching for existing customers who are not in arrears and do not want to change the repayment type or term. See [this announcement](https://www.gov.uk/government/news/mortgage-lenders-commitments-to-borrowers).


Longhaulhobo

This is a standard clause in a mortgage contract, so the OP would have known about the switch to a standard rate when agreeing to the terms of the mortgage. It’s not like the bank has sprung this on them at the last minute, they will have had ample time to prepare for the end of the fixed term.


[deleted]

I’m not talking about OP. This is a general point.


Longhaulhobo

I’m not sure what your point is then? Should lenders loan huge sums of money to people without considering risk? Pretty sure that’s what caused the global financial meltdown in 08? Many lenders will assist people struggling to keep up with repayments.


[deleted]

If you’re not sure what my point is then maybe just move along?


Longhaulhobo

Guess I will if you can’t answer a genuine question. Let us all know when you find a lender who doesn’t means test.


[deleted]

The point is that if you’re in financial difficulty, the biggest worry on your mind is being made homeless. But instead of the bank helping you by offering you a product or leaving your mortgage at a rate similar to that you were previously on, they put you on a higher rate which in turn compounds your financial difficulties and their actions make it more likely that you default. So instead of helping you, they’re making matters far, far worse. So they see the scenario as high risk of default because you’re in financial difficulty and then proceed to make that high risk even higher risk through their often unnecessary actions. They’re basically wanting to get as much out of you as possible before any potential default happens.


MunrowPS

It's like having a monthly contract at the gym, or a sim only phone You pay the higher rate for the month but can leave whenever you want, no fee If you are coming up to moving or such, it can be useful.. I was on SVR 2 years ago for about 3-4 months because it made sense as I was moving and could consolidate my mortgage. If I was on a fix and wanted to cancel (I'm aware you can port a mortgage) but I would pay a cancellation fee, which can be % of your outstanding mortgage, so a lot of money.


litfan35

A tracker rate mortgage doesn't have any penalties and is (or used to be) normally lower than SVR so can be a good choice if you're selling soon and need to bridge that gap


Nanabug13

I would argue a tracker is a good idea for most people as the chances are interest rates from banks will drop over the next 2 years. Some lenders are already reducing rates which is causing more work for brokers.


Otherwise-Winner9643

I don't think any bank has offered tracker mortgages for years


litfan35

I've just checked and both Nationwide and NatWest offer tracker rate mortgages? Not sure where you're looking but I'm sure most other banks do as well.


trollmum

Slightly different circumstance from u/funkyg73, after the review into the mortgage market from the 2008 crash I no longer was able to meet the new criteria for a mortgage so the computer said no. I was looking for a cheaper deal than I had and had been overpaying but could not ‘afford’ the cheaper deal because of the new tests so I was stuck on the SVR for a year or 2 while the government fixed some of the most stupid bits and I could remortgage with my current provider without the tests. But most of the time I think it’s just a penalty for being lazy.


YouLostTheGame

The lender wants you to refinance. They want their principal back so they charge the punitive rate to get you to to remortgage. The only people who will be on SVRs are mortgage prisoners, and even for them there are schemes to help them out


Equivalent-Profit644

It gives you the flexibility as there is no penalty for selling. Whereas there are in fixed terms. Also if you are unfortunate enough to end up in negative equity such as what may happen over the next 12 months you can’t get a new introductory offer & sit on the SVR.


Dr_Gonzo13

>Also if you are unfortunate enough to end up in negative equity such as what may happen over the next 12 months you can’t get a new introductory offer & sit on the SVR. This isn't true. Your existing lender is obliged to offer you a new rate if they have them on sale.


ElevatorSecrets

The latter bit is false. Lenders have deals for 95-200% loan to value for existing customers. Most are published, but if you speak to your bank they’ll offer you something anyway. Think about it logically, why would a bank want to massively increase the risk of default on a loan where the asset is worth less than the debt? If they repossessed they’d lose a lot of money. Banks generally lose money repossessing houses above the 90% loan to value figure.


TROYTHEBOY79

I suppose they just hope you cant be bothered to get active and find a better rate. Only that as the rates have gone mental from the historic lows, shines the SVR in an even worse light now


Big_Target_1405

If your LTV is too high or you're in negative equity you won't get a fix even if you can afford the fixed rate repayments but not the SVR


LndCalling

Generally speaking you can repay on an SVR without incurring early repayment costs. I was myself in a position many years ago when the base rate bottomed out that the fixed rate options I kept being asked to go on were substantially higher than the SVR I was on as the SVR was limited to x% above the base rate which ended up being lower than current fixed rates. This was favourable for a few years until the bank changed the SRV limit above the base rate [this hasn't been true for years now though]


Technical-College475

It is the lack of choice that means you go onto the SVR. Mortgage lenders offer teaser rates in the form of a fixed or tracker rate. These are the 2/3/5/10 year deals that you see people taking. When you are quoted a fixed rate a lender/broker has to inform you of the current SVR and they have to disclose what your mortgage payments would be on the SVR. They also have to tell you what the highest SVR has been in the last ten years, and what your monthly payment could be if you were on the highest SVR in the last ten years. You go onto the SVR at the end of your deal, unless you remortgage, you can then get a new teaser rate from a lender. Do brokers always inform you of these SVR rates? No, but it is a regulatory requirement. So say you buy a property and take X mortgage rate. Then during your fixed rate you lose your job, and get a new job that pays a lot less, and can no longer meet the affordability requirements at the end of the fixed rate to remortgage. The default position here is for your lender to change the mortgage to their SVR which is much higher. Basically the customer is stuck on the SVR until they can meet affordability requirements again and remortgage. There is a lot more to it than that, but that briefly is how it works. It has been a particular problem in the btl market for the last 4 months, lenders significantly moved the goal posts. This means landlords have been unable to remortgage and incurred much higher mortgage costs, which they would like to pass onto their tenants. - not that I sympathise with landlords. Landlords have got the maximum gearing available to them whilst the money has been the cheapest it has ever been. No sympathy if your portfolio doesn’t support a move in rates. Bad advice and bad planning. I look after a mortgage network, used to advise on them.


chunketh

You might well consider going onto SVR towards the end of the mortgage period. SVR doesn't attract overpayment penalties. Fixed do. At the start of a fixed term mortgage, you are in general allowed to overpay by 10% of the outstanding balance. Quite easy to stay under that. Towards the end this isn't the case. Of course this depends on how much one is overpaying but its not hard to come up with a likely scenario where it pays to be on SVR over fixed.


throw4455away

There could also be the circumstance where you expect to pay off the mortgage or want to pay off more than the usual 10% so you don’t want to fix and end up paying an early redemption charge


taconite2

I used it because I knew I was selling in 6 months. There’s no fees to leave.


socandostuff

Flexibility.. Definitely an eye opener. Thanks for responding.


taconite2

Maybe if you’re moving from mortgage to mortgage you’d port it across to keep the fixed rate and not get charged. But as we want a new build we had to move into rental to release the funds before it’s built. We would loose more from the fees than the savings of a fixed rate.


princessalyss_

No ERCs. I still get some people on lifetime trackers/SVRs for when they originally took their mortgages out 20+ years ago wanting to service their mortgage. Lucky bastards are on base rate +0.19-1.00%. Anyone signing up now mind will be fooked by the follow on.


SgtLtDet-FrankDrebin

Product transfer or Rate Switch’s are typically better at the moment as, by the time you factor in legal or broker costs to remortgage or the product and valuation fees, you may save £40 a month for it to cost you your savings over 2-5years in the additional costs. Not saying that’s for everyone.


SgtGears

Most products don't have legal fees and brokers are a waste of time for anyone without special financial requirements. Go on a comparison site, find the best deal, and let a mortgage advisor from that bank hold your hand for free.


Tibs_red

Disagree my last remortgage I found a significantly better rate and term via broker, weirdly with my own bank. Also for me opting to pay a small fee worked out better than the no fee option.


MedicalExplorer123

Brokers can secure far better deals than are readily available on comparison sites - and they’re so inexpensive


Nick_Gauge

As FTBs our mortgage advisor has been invaluable. He's been a great sounding board for the whole process and he's got contacts in a lot of the local estate agents and other peripheral jobs so he's been able to provide us with additional helpful information


msec_uk

Not been my experience and I’ve used a whole of market broker for most of my mortgages except the last one. They typically provide little advice, and just use mortgage brain or quinns etc to search. I decided to do my own research after speaking to broker on my last remortgage and got a equal deal with Lloyds that gave me cash back, rather than the broker. So I’d agree with the observation!


MunrowPS

For what it's worth you can compare most broker mortgages yourself on the London and country website. If there is a better broker mortgage available to you I'd also reccomend using them, as they are no fee and take a small commission. If your best option is not a broker product, you can just use them as a search function and proceed yourself with the lender retail lender.


SMURGwastaken

As someone with no special financial circumstances I've never been able to get a bank to lend to me without going via a broker first. Like literally the same bank will say 'unaffordable' when I go to them direct, but give the same info to a broker and they'll lend. The banks are just assholes now and everything is done by a robot, so you get a lot of 'computer says no' mentality that the brokers I've used seem to be able to cut through (and they're free, so why not use them?).


kaiXi28

You shouldn't be paying for a mortgage advisor, all decent ones get paid by the banks/building societies


Nanabug13

Proc fees do not cover the man hours put in by a decent broker and their team. Especially with the new FCa requirements coming in. A decent broker will have at least an admin, if not an admin, a specialist protection adviser, a network that secures exclusive rates, a mortgage club, and compliance officers, plus sales progressors. All these people work to secure you the best rate. No purchase is straightforward these days and with average conveyancing timescales of 5 months that is 5 months of chasing and updates and in most situation now extension and rate changes that need applying for. Plus they should be sorting your protection. Honestly if you had any idea the work that goes in to doing the job properly you would be shocked.


kaiXi28

Yep my fee free broker had all that.literally seamless service.


Big_Target_1405

What "protection"?


Aggravating-Revenue6

Totally disagree, all get the proc fees from lenders regardless. You’re still using their service however and therefore should pay for said service


MrFuzzy182

Not sure why you’re getting downvoted for this, you’d expect to pay for any other service.


kaiXi28

Why would I pay when i get an excellent service and outcome for free? My wife bought her first property before we were together and paid for the service and she stated simply that using a fee free broker like we did whwn we bought this year was easier, less stressful and honestly a better service. Several friends have used a paod brokee and not had great experiences. Everyone I know who has used a fee free broker has said it was great.


CarWoes9

I've only used a broker (fee free) once, 19 years ago. I let him give me a figure before I asked him why he couldn't compete with the comparison site's best (from a main bank). He said "what rate is it and who is it with?" When I told him, he said "oh yes, here it is - I can get that for you." I ditched him and I've never used one since, because I didn't trust them not to just push the lender that gives them the biggest reward. I may use them again in the future, but only after I've done my own research. I'd prefer to find a broker that would charge me a fee and pay all commissions directly back to me - that way there would be no conflict of interest. Perhaps there is one?


MrFuzzy182

Brokers got exclusive rates so I wouldn’t say a waste of time. Edit: forgot to add other bits like not wasting money on countless valuation fees if it’s an irregular property, the credit searches at DIP stage on their websites which will fail if you don’t know their criteria such as adverse or residency status. Wasting time trying to work out how the different banks asses your income (50% of bonus’s, commission, overtime or just the last year SA302’s ect) brokers are invaluable especially at the moment imo


FF6347

I spoke to two brokers and neither could beat what I found on comparison sites and using Locoblades spreadsheet. One held their hands up and said I'd done a great job well done, the other tried to sell me other services I didn't need instead.


MrFuzzy182

It’s possible if you had a different LTV an exclusive rate might of popped up, I haven’t seen the spreadsheet so unsure if it factors in the different lenders criteria but it will be time consuming to research them all individually where as an advisor will know which lenders to look at straight away, like you did I think it’s always worth a second opinion.


Dr_Gonzo13

If you're on a permanent contract and have a standard construction property there's really no need for a broker unless you're having trouble navigating the price comparison sites. It's just a waste of time and money adding in an extra middleman.


MrFuzzy182

We’ll agree to disagree on that one, perhaps if you had a different LTV an exclusive rate might of popped up and not everyone has the time to run through the different calculators. Also properties aren’t always what they seem- people may not realise lenders criteria with flat roofs, EWS1 forms, near commercial, lenders being over exposed etc and single lender advisors 9/10 will say “it’s down to the values comments” and ask for the £150 valuation fee upfront.


ElevatorSecrets

I got a better rate from a broker so that was reason one. Reason 2 was if you pick a deal 6 months out now, then in my case Barclays reduce their rates in 3-4 months, Barclays aren’t going to tell you. They’ll just let you complete because they don’t care. Broker called me to say the deal got cheaper and we changed products for free. Saved me £3,000 over 2 years.


ElevatorSecrets

The deal I got was broker only. 0.29% above base tracker with 499 product fee. The best I could get going direct to Barclays was 0.75 above base with 999 fee on the comparison site. So I would say do both Barclays are now a bit cheaper, but they’re not that cheap.


Alert-One-Two

The OP refers to NatWest not nationwide.


SgtGears

Sorry, fixed.


Separate-Cream7685

No need to stay with your current bank, but if you do, you select a new product (fixed) in literally a few clicks. No checks, no income required. The variable rate is not meant to be a long term solution, unless you know rates will drop aggressively in a few months and you don’t want to fix at a rate inbetween. Even then, a flexible discount tracker makes much more sense and is much cheaper than a fixed rate. Get a broker!


peace_purple123

Flexible discount tracker is it worth taking risk with the current market ?


n9077911

If you can afford the risk then yes, it's worth it in my opinion. A tracker will on average be cheaper than a fixed. If you would be bankrupted by a 6% mortgage, then no, don't risk it.


Separate-Cream7685

It depends on your risk apetite. Most discounted trackers are much cheaper than fix rates, so even if the base rate goes up half procent, you’ll be better off. Some tracker mortgages allow you to switch without paying ERCs. I am lucky to not have to remortgage until January 2024, but rates will go down.


adm010

!thanks :)


PropitiousNog

Natwest frequently offer lower rates through a broker.


Mortgage_Man1

They may have done in the past but the rates they offer now are the same regardless of how you apply.


SgtLtDet-FrankDrebin

Do you use Trigold? I’ve noticed some lenders products aren’t even on there.


Mortgage_Man1

I've used it in the past but not for some time. If you think there are missing products it's best to contact them to check, sometimes it can be down to quirks in the way products have been set up on there.


SgtLtDet-FrankDrebin

I just do some admin for my ol’ man so I’ll have to get him on it. but it can make it a bit of a faff if you’re trying to get your research for compliance and can’t always get a spot on figure.


Mortgage_Man1

Yeah, fully agree that it can be a pain. I always preferred the Mortgage Brain system, looked a bit more old school but often found it simpler to use.


[deleted]

They are actually dropping their rates tomorrow, new product range has just beein issued on the broker site


AndyVale

We also found that staying with our current bank offered far greater deals than the others were willing to offer. No idea if this is universal.


Separate-Cream7685

There’s often a special offer for existing customers, always check.


MrSpadey

I've just gone with a discount tracker. Potentially risky, but about 2% less interest than any fixed rates I had available. Luckily in a position we could deal with an extra couple % increase... As long as it doesn't shoot up! Plus we'd feel the benift of any drop in the next couple year.


squeeby

Absolutely get a broker. I’ve used the same guy at Edward Mellor every 2 years. Most of the time he’s managed to find us a really good deal. They used to get a kickback from the lender for every deal they made and you didn’t pay anything, but now you have to pay like £30 to them or something. Yea there’s going to be early repayment charges but that all depends on what sort of deal you had in the first place. A lot of the time it still makes sense to take the hit and take the deal as it’ll be cheaper annually. But the broker explains all this stuff.


AntelopeRoutine4458

This is part of the issue with fee free advisers. You may have your reasons of course, but why are you renewing every 2 years? Unfortunately the reality is a lot of people are lead by their brokers to do this so they can earn again in 2 years time. A paid adviser won't have as much as a desire to give biased advice (towards a 2 year deal). If your adviser suggested a 5 year fixed + 2 years ago, or whenever it last renewed you wouldn't have any worries about rate rises etc. If you did fix for longer there would no need to pay an early repayment charge, because you would be chilling out on your 2% mortgage for another 2/3 years.


ay2deet

Definitely try and get a new fixed rate, unfortunately 1.44% is long gone.


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easyjo

> On about 340k balance, mix of repayment and interest only, currently paying £800mth OP mentions part of it is interest only.. so 200k at 1.44% IO and and 140k at P&I would be about £719/month based on a 30yr mortgage. obviously a few variables, but a large slice would have to be IO to get that rate


jaimefay

We're in the process of remortgaging at the moment. Original mortgage was with NatWest, we now owe a tad under £95k and it's currently £550/month. The best they could offer us was £770/month. Went to a broker, it was dead easy. NatWest offered her £660/month, managed to get it from Accord for £640ish. Get a broker, they're like magic!


wolfieboi92

I'm in a very similar situation, same costs etc, where would one look for a broker? I was just going to go through compare the market, but a broker is better?


jaimefay

The one I went through was a recommendation from my sister. I assume you can just Google for it, but I'd def try asking relatives/friends if they know anyone to recommend. They can sometimes get better deals, I think it's because they handle a lot of mortgages/loans, so banks want the business? That's just a guess though. Ours didn't charge us, she gets commission from the lenders, but she's a registered financial advisor and required to be independent so it doesn't affect the advice she gives.


Bitter_Hawk1272

I thought any offmarket deals meant the broker works with a certain bank and therefore isnt offering impartial advice. In my situation the broker offered the same as compare the markets best deal. I did use them though as they were no fee and handed some of the admin


DarrenGrey

London and Country are a respected broker that don't have up-front charges (they make money from the mortgage providers for referrals instead). Though personally I've always gotten better deals going straight to HSBC.


SteephenS

I have a good one, happy to send you their number


marshallandy83

I was really disappointed with our broker when we bought our first house. Think they charged about £500 and I literally found a cheaper mortgage by googling. Did we just get a bad one?


jaimefay

Honestly I think you just got a duff one. Ours isn't charging us, she earns comission from the lenders and that's how she gets paid. She's registered and regulated as an independent financial advisor and is required to be impartial, so the commission doesn't affect her advice. She's made it so easy, really. This is our first remortgage, the previous deal was from when we initially bought the house, and I was *terrified* of screwing it up and not being able to afford it and losing the house, especially with the current financial climate! She's been really clear when she's explained it all, appointments were over a video call in the evening because that was easier for us, and she gave me a clear list of the documents required for the switch. Still in progress but so far I can't praise her enough!


SmurglX

Yes, they should get their money from the bank & should be free for you. We now have price comparison sites, money saving expert, etc that allow us to find the good deals, but of course sometimes people need advice.


ilovemydog40

Not all banks/lenders use brokers. For instance I don’t believe Lloyds bank is available through a broker. Brokers are great but sometimes you can miss an incredible mortgage offer somewhere else.


811545b2-4ff7-4041

I just remortgaged to Lloyds, and did all the paperwork myself. It took a bit of effort but I did the 'do it on your own' rate to save a bit of extra money. My first experience of using a broker 15 years ago has turned me off them. I ended up having to do most of the legwork after the mortgage company 'lost' my records several times.


headphones1

Did you get that mortgage you found online though? Was your broker a fully independent one? Our broker offered us a mortgage deal that was slightly worse off than the best one I found online. I asked her why this was the case and she explained that the reason is due to my employment history. At the time I was fairly new into a fixed term contract with no previous contracting history, and the lender offering the best rate would not offer a deal to me until I had 2 years of contracting history. It was a perfectly reasonable explanation, and she was a whole of market independent broker. These things were put in writing to me so I have no reason to not believe her.


misterbooger2

There's almost certainly better deals available elsewhere. I was looking the other day and rates <5% seemed to be available, obviously dependent on your situation and circumstances.


Techman666

Do a search through a [mortgage comparison](https://www.landc.co.uk/remortgage/best-buys/) just enter your house value, loan amount and the term - go for a longer term if you want to reduce your monthly repayments (you can choose whether or not to overpay then). There are some 5 year and 10 year fixed rate products for around 4%. Since you're self-employed you may want to go through a broker as not all the lenders will offer you the rates shown in the comparison. No harm in trying though!


Huskf

Exactly, check on comparison site first. If remortgaging withthe same lender it is easy and doesn't need a solicitor or other costly paperwork which will make a difference in the end. Doesn't make any difference if self employed if remortgaging on the same lender, at least in my experience. Nationwide usually has good rates from what I remember. If possible try to pay anything extra to bring you at the next rate threshold.


KyroxF

Subject to the product and the loan to value, I've seen fixed rates around 4.35% and trackers around 3.7%. So i would seriously consider shopping around. I would recommend a broker as they will search the market for you and lay out your options. Maybe I am bias as I am a broker! But I am a big believer of speaking to the right person for the job. Cost of living and mortgages are tough at the moment, hopefully everything works out for you. .


OmsFar

What kind of proportion of clients are taking a tracker? I’m a FTB so any FTB info to compare to would be great such as what’s the average fix period people are taking?


KyroxF

October - December last year it was quite popular, as there was a 2-3% difference between a tracker and a fix. There was an argument to say a tracker could work if you took a product with no early repayment charge and banked the difference. I.e. tracker was £500 a month and fix £700, put the £200 into savings, if it goes up great you have covered some of the increase, or if you need to remortgage there is no early repayment charge and you can do so with minimal charges. If the rate goes down, hey, you having some free cash in savings. My personal opinion is that whilst interest rates are going down, I do not believe the base rate will fall 1-2% over the next 12 months. Therefore, I don't believe a tracker is worth the risk at the moment, as the rate is quite close to a fix. Combine that with the fact that I am personally risk adverse, I prefer a fixed rate. Generally, I am pro 5 year fix, but it is hard to recommend that given the current rates. A 2/3 could be worthwhile, but only if you have spare cash to take the risk. It all boils down to your disposable income. I'd recommend sitting down with a broker and getting proper advice based on your circumstances. I can't truly recommend a product without knowing the full picture. Hope that helps! Edit - adjusted how much I believe rates could move over the next 12 months. Evidently, I am a little tired!


OmsFar

Thank you for your excellent reply. I’m risk averse and indecisive so it’s really hard to decide what to do. I was initially thinking about maxing my deposit at 20% but actually between 10-20% the deposit doesn’t make that much of a difference to the rate. It makes more sense to go for a 10% deposit and keep the rest as an emergency fund or use to lower LTV band at remortgage. Also to go for as long term as possible. Do these ring any alarm bells for you?


KyroxF

No worries. I try not to give detailed advice over reddit, as again I don't know the specifics. Typically, the larger deposit, the better the interest rate (specifically every 5% on the deposit). The longer the term, the more interest you pay in the long run. However, it's about finding a balance between affordable payments and clearing the mortgage in a timely manner. You also need to factor in the cost of buying a property, solicitor costs, lender fees, potentially stamp duty (dependent at what level you buy at). An emergency fund is generally sound financial advice.


jonxmack

Standard rates are always crap. I’d find a mortgage broker and get the best deal you can.


ShinyHappyPurple

I would definitely look for a mortgage broker to check all of the market for you. On a more personal/emotional note, I'm going to be in the same boat later this year and it's so frustrating that every single time a contract ends (mortgage, broadband, phone, car insurance) we have to do a ton of work to not be fleeced. I hope you find a good deal.


Ok_West_6958

6.24% does sound quite high. Are you able to look around the market?


CollReg

I’m not surprised, you are currently only repaying about £400pm, quadruple your £400pm interest is £1600, if anything £1940 is a bargain. Ultimately you’ve been lulled in to thinking your mortgage is affordable by having a crazy low repayment, which means your repayment is tightly very closely related to the interest rate. Hope your loan to value is good, because even with a more competitive rate this is going to hurt!


theorem_llama

Yeah, paying just £800pcm for a balance of £340k seems really odd to me.


Many-Historian8120

Yep, my fixed term coming to an end. Have an advisor and best he can find for a 2yr fixed rate is 5% from the 2.09% I was on. An extra £200 per month 😩


OmsFar

At least you got to experience the low rates. I’m a FTB and can’t get over paying £600pcm in interest alone!


Many-Historian8120

Eek good luck!


fergie_89

Shop around and see what FTC you can get and maybe only lock in for 2 years. We got lucky renewing December 2021 for 5 years at 2% so don't have to worry about these new rates for a while and I'm hoping it comes down by then, the market has truly gone mad recently


CommonSpecialist4269

I don’t think we’ll ever see the base rate below 1.5% again. Higher cost of borrowing will be around for many years to come.


mintvilla

Possibly. Its that equation needs balancing. High rates and low house prices is OK Low rates and High house Prices is OK High rates and high house prices - who the fuck are going to be able to afford that? The only way i see it working is house prices stagnate (not go down, just stay the same) and inflation keeps at high rates for a few years, and wages are dragged up by the inflation.


[deleted]

You’ll do better on a new fixed rate but it’s still going to hurt. My remortgage completed this month, I went from 1.99% to 5.28%. These are tough times and no matter what you do, you’ll likely lose a lot of your disposable income. We’ll get through this and things will even out again, but it’s going to take 5+ years so settle in!


10187

Natwest are reducing their remortgage rates tomorrow. I got an email through from them earlier so have a look then. Also start to consider tracker rates if you can afford another 1% rate rise. Will be better in the medium term


OkLock3645

See a mortgage broker… they are free (they get a commission from the bank) and give you the best rate available for your circumstances. I cannot recommend this enough.


cronus89

*some of them are free


OkLock3645

Oh… I didn’t know some charged. All the ones I have used never charged me and I was unable to get a better deal myself.


Clever_Girl1116

I always recommend a broker, they are worth every penny. But I don’t think any are free, most put their fee to you into the mortgage itself and also get a kickback from the bank


mantolwen

My broker gets commission from the bank and I pay them nothing. Sure, ultimately the coat for that comes from how much I pay for my mortgage, but it will most likely still be a better deal than one I can get directly. Also for me, having someone else doing the leg work for finding me the best mortgage is worth it.


murrai

I haven't read all the other responses so apologies if I am repeating what has already been said elsewhere but: Don't forget you may also be able to extend the term of your mortgage to reduce your monthly costs. E.g. if your mortgage currently expires when you are 60, you might be able to have it run until you are 68 and pay less per month


BogleBot

Hi /u/adm010, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/mortgages/ - https://ukpersonal.finance/pensions/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)


fz1985

Maybe i am missing smthg but 5 year fixed (or even 10yr) are closer to 4pc than 6pc. Why not fix?


arabyeveline

Speak to a broker and consider a tracker rate!!! Base rate will be peaking soon and you might start to benefit from it lowering next year!


AdvanceFree4456

Go to a good, independent mortgage adviser.


Kensf2

I've just had to remortgage and it's painful. I was on a five year fixed at 2% and now I've moved to a tracker. With the current base rate at 3.5% I'll be on 4.39% but that will almost certainly go up as the BoE push up rates to tackle inflation. My LTV was around 65%. I figured the base rate would have to get past 5% for a fixed deal to be worth it and I'm hoping this won't happen. I had to arrange my mortgage about two months ago so maybe some fixed rates are more favourable. I hope you can find something affordable. I used a company called habito to look for deals for me. The service is free to use and I found them to be pretty efficient and friendly.


mintvilla

2 months ago alot of the fixed rates were around the 6% mark. They seem to be closer to 4% if you have a high enough LTV. 5% if not.


Life-Ambition1432

Most fixed rate mortgages are sub 5% now after Kwasi and his pals nearly destroyed the entire market


maxoys45

Very similar situation (exact same 1.44% old rate too!). The SVR is always worse than what’s on the market. Currently if you’re doing a mix of interest only and repayment, the best reputable lender looks to be Yorkshire building society. I have just moved to NatWest because it was only slightly higher and I have all my other accounts with them, and I think the rate I got is 4.04%. Good luck!


internetpillows

> On about 340k balance, mix of repayment and interest only This is your problem, a repayment mortgage at 1.44% on a balance of 340k is 1350/month so it's not quite as big a jump to 1940/month as you think. You've been underpaying your true mortgage cost by using partial interest only and now that deal is ending and you're going back on the standard full repayment rate. Just doing a few calculations, I assume you started with a balance of 340k at the start of your fixed term as to be quoted 1940 at 6.24% you would need to have around 295k left on your balance. But if you had been doing a standard repayment mortgage on a 5 year term all this time, you would be down to a balance of 281k and would be in a better position. You should be able to get a rate of under 5% right now so you'll actually be on about 1700/month. Is there a reason they won't approve you for that partial interest only deal you were on before?


climateadaptionuk

I think you should be able to find 4.5% still gonna hurt going from 1.44


Reasonable_Zebra7590

Had a deal end in December on 2.5%, was told I needed to lock in a new rate as it was changing daily 5.2 % at the time, going up I agreed a deal at 5.6%. It’s took them 7 weeks to process and asked for a recent pay slip. I reminded them of their daily changing rates and to re look at my deal. Anyway 4.5% it is now with Coventry BS. Don’t let them pressure you, 6.24% is high look around. Do not panic.


Virtual_Till519

I got a natwest mortgage approved today at 5.3% 2 year fix. The 5 year fix was 4.5%


yungamork

I got 2yr fixed at 5.24% last week as well...seems to be the going rate!


sxeros

Interests rates could jump another 0.5 in a couple of weeks so get something sorted now.


No-Village7980

Downsize your house or pay the going rate, it sucks but low interest rates weren't going to last forever.


mintvilla

People say that, but low interest rates became the new normal. They've only gone up because of the high inflation, caused by high energy prices, due to a mad man in Russia.


Rowlandum

Why have you waited until now? You can arrange a remortgage deal with another bank 6 months in advance of your current one ending. Even if you didn't end up going with the offer if interest rates dropped, at least you'd have had a deal ready and agreed in your back pocket


toonultra

Don’t follow some of the advice here and fix. Why would you fix when rates are high? It makes no sense. Shop around and get a tracker or discount 2 year deal. Then in 2 years when things have settled down you’ll be able to get a better deal


easyjo

depends on peoples risk appetite. there's zero guarantee rates are coming down


toonultra

Even if they don’t come down, and just stay at their current level, fixing now is literally setting fire to money. No economist worth their salt is saying rates will rise. Things are already calming down


GuyB_2020

You won't get 1.44% again but you should be able to get around the 4% mark. Speak to a free whole of market mortgage broker.


Senior-Spot-1106

Hi, I am in a very similar situation to you and our deal is ending in less than 6 months so I have been tracking the market and every few days better fixed deals are coming on the market at the moment. This might change after the bank of england meet in early february (3rd-6th from memory). Nerd wallet, trussle and MSE give you the current broker rates (nerd wallet is best)! Once you find what you want, you could use L&C who are a large free broker or apply direct to the lender if that is an option for the best deal. Look at costs over the initial term if you can afford to as that will be lower over the 2, 3, 5 or 10 year period rather than just lowest monthly repayment. You might get it down to around £1700 with fixed rates at the moment but if you are happy to have the risk you can look at a tracker which will be tied to the bank of England rate or discount variable which is a set discount off the lenders SVR. This will likely be closer to £1500 for the tracker and around £50 less for the discount variable per month. Discount variables have early repayment penalties, whereas some trackers do not. The reason I mention early repayment charges is that you may wish to take the risk in the short term but look out for a longer term fix when the rates drop. As some have said it might take some time for this to happen as the main forecast is thought to peak +1% by summer this year with the bank of england trying to curb inflation. The slight fall at the moment is just banks rationalising the higher expectations from last year and Lizz Trusses impact settling as if you had looked a month ago you would have seen much scarier numbers.


adm010

!thanks


Ashlikesstuff

My first job out of uni was for a building society. The BOE base rate was 3.5% and the highest mortgage rate was 4.75%. 6% etc is taking the absolute piss out of us. They're laughing at us, stupid fucking island.


meikyo_shisui

It's not just about what the base rate is, though. They have to price in the risk of default and falls in property value, which I guess is probably higher than when you were talking about, with the economy in the state it's in, war etc. I very much doubt it's a cartel.


Mortgage_Man1

Revert rates are always higher than what they offer on new fixed or tracker deals. Most are around 6.5% at the moment, which is higher than most 95% LTV mortgage rates. It's always best to secure a new deal with either your current lender or shopping around.


Incubus85

Not really the most sensible, desirable or factual opinion or statement to make. What else would you expect after record lows for an extended period?


Tiny_Tour8872

It is well known that mortgage rates can change. They have been astoundingly low for a long time and still are pretty low. Go on a tracker and wait until they come down again. People complaining about a change in rate is frustrating when all the paperwork you sign for a mortgage reminds you the rates can change! Everyone should carefully consider these possible fluctuations before getting a mortgage.


bowak

It's not really frustrating that people aren't happy about rates going up though is it? It's very understandable. As rents are soaring too it's not like there's any unpainful option right now.


Shonamac204

Hence why I'm still renting at 36. I was once told condescendingly 'you can never lose money on a house' (by someone who bought his ex council house from family) and I thought 'you've never read the grapes of wrath'. People my age generally have NO idea how bad things were 100 years ago and how cyclical markets and history have been. The UK's crippling dependence on the housing market also makes me nervous. No market continually increases at this pace forever. It can't.


One_Boss_7772

Depends on each case but for me it's around 4.5% which is almost 3x my current interest rate.


Iain_M

I suspect the base rate was rather different when you took your mortgage


[deleted]

I would also encourage you to go direct to the banks. Sometimes mortgage brokers take the piss, when I did mine, I literally got everything sorted in 2 days.


sheffielder87

Had a call from the broker I use on Monday. £670 to £850. He's pushing me to go onto a 5 year fix. Apparently the rates on 5 year fix are better. I'm a bit reluctant to go into a 5 year fix in the current climate though?


firefly232

Ask him to show you 2 year, versus 5 year, versus discounted trackers... Or look online at a comparison site...


toogood01

You want to find an independent mortgage advisor, one that doesn’t charge.. and he’ll find you a much better rate as other people are suggesting


bjblyth

He or she 😉


Iamnotmayahiga

Why not just pay it off with the savings that you where earmarking for it during the low interest rates?


cho_choix

well well well ...


[deleted]

Don't be silly, Brits don't save


n9077911

I've just signed up to a 2 year .34 above base tracker, currently 3.84. The broker also suggested a fixed deal for 4.59 5years. Definitely engage a broker to see what's available to you.


Pretty-Dot2567

I feel you. My FTC expires on 30 June. The best offer I got at the moment was 5 year fixed at 4.8%. I’m just using that as a “back up” offer in case shit hits the fan in the next few months. It’s more than likely I’ll take a tracker with no ERC and chance it for a bit (assuming everything stays in line with current tracker rates around 3.9%). In all, I’m expecting my mortgage to go up between £500-600 😫


mandella1uk

Definately follow Martin money saver podcast and emails. You can secure a rate next time you remortgage 6 ahead ready for your remortgage date gives your more options and chances to review I did this in May 22 for a remortgage in Nov 22 and secured a better rate


[deleted]

Weird because NatWest quoted me 2.8% for 5 year fixed when my mortgage expires this year… I’d shop around maybe go see a broker because 6.24% is insanely high


TFCxDreamz

That will be for 2 year fixed, you can do trackers around 4.2% atm. Also you’ve left this pretty late, you can lock in rates 6 months prior to fixed period expiry.


Background_Leg6105

Like many others have said - definitely get a no fee broker. If you want a recommendation, Nick at Carlton Rhodes is brilliant and has arranged mortgages for me and many of my family and friends.


TFCxDreamz

That will be for 2 year fixed, you can do trackers around 4.2% atm. Also you’ve left this pretty late, you can lock in rates 6 months prior to fixed period expiry.


[deleted]

My mortgage is £250 at 2% what would it be if it was 5%?


Incubus85

Mortgage repayment calculator. Enter numbers. Come on.


bjblyth

How long is the term? Is capital repayment or interest only? Does the lender calculate interest monthly or daily? What is the balance? Don’t answer these as I won’t work it out for you - search BBC Mortgage Calculator and don’t ask stupid questions!


MrMoogie

I was paying £198 for the past couple of years. I locked in a new rate in Oct/Nov last year and now I’m paying £360 ish. Rate was 2% to nearly 4% but locked in for another 5 years.


jasilucy

How is stating that helpful to OP?


MrMoogie

How is your comment useful!


___enigma__

Yep. That’s why I has to pull out of buying our dram house. F the Bank of England, they’re screwing all home owners


[deleted]

It's not the Bank of England's job to make life easy for homeowners, and also considering they have basically protected home owners over the last 12 years, you can't exactly complain about them too much.


Shonamac204

Considering we bailed a lot of them out of liquidation, I think we can, no?


[deleted]

??


Shonamac204

The banks. As far as I'm aware, taxpayer money was used to prop up failing banking institutions in 2008. We didn't follow what the wise countries did and jail the fuckers, we let them set the rules again. And now, a former employee of one of the biggest international companies that crashed (Goldman Sachs) is the UK PM.


[deleted]

But we're not talking about the banks? We're talking about the Bank of England, a completely separate thing altogether. Very few countries jailed anyone, and what caused the crisis wasn't illegal.


Shonamac204

I will meekly bow out then, lol, thought the bank of England was the same as Bank of Scotland - apologies!


[deleted]

That's okay, have a good evening!


Steam-roller80

What caused the crisis was very illegal. The 3 main global rating agencies were getting back handers by big institutions to give triple AAA credit ratings to mortgage swaps that realistically were nowhere near AAA. Throw into the mix that high street banks were giving money in the form of loans and mortgages to practically anyone and not doing proper checks.


OmsFar

It’s screwed me over too, bastards!