Re-mortgage now or wait?
Discussion
trashbat said:
From a legal perspective - though not a lawyer - it's certainly true. Contracts and their binding obligations aren't formed until offer, acceptance and consideration (exchange of value). Product switch remortgage is a mildly interesting one in terms of consideration as there's no new transfer of funds. Possibly once you've paid the product fee?
Yup. Until legally binding, it's not legally binding but I think PP isn't concerned in that regard. Likewise, the lender's offer will stipulate that they can pull it whenever they like and for whatever reason but I don't think that's what PP is asking about either. From what I can see he is asking if one of the many reasons for a lender pulling an offer is just because the base rate has changed.
The answer is that in theory, of course, but I think he appreciates that and is asking if anyone in the business or more than 14 years has experience of witnessing that.
From the client side a rate rise could put someone's risk profile into the other side so cause a lender to retract an offer. All the other clients with the same offer could leap to accept and fill the allocation which could lead a lender to pull the offer and in theory the pre agreed buyer of the package on the other side could seek to alter the terms (size more likely than rate) and so push the lender into pulling some offers to fit. If it were a big and unexpected rate increase then you'd expect a lot of offers to be pulled for a lot of reasons including the bond buying backing out altogether and preferring to pay any penalties but a 25 bip rise that was generally expected and would have certainly been priced in on risk calcs on both sides doesn't seem likely to trigger much action?
WeiB.beer said:
My existing Halifax mortgage fix ends in September 2023, Halifax offered 3 new deals 2,5 and 10 years fixed.
We’re in our ‘forever’ home and the 10 year fix was the most competitive, so thankfully we locked this in last weekend at 3.95% for 10 years with no arrangement fee.
Did you pay an ERC?We’re in our ‘forever’ home and the 10 year fix was the most competitive, so thankfully we locked this in last weekend at 3.95% for 10 years with no arrangement fee.
Switched now or just got the offer?
sent you an email earlier, cheersCoolHands said:
Anyway so after this increase what’s the outlook for following few months? Will edge back down?
Base rates? The 25bp is a calming number designed to show they want to stop raising but we have all the pay rises from the strike settlements to come in and private sector employment still looks bullish and inflationary also as do all the continued govt handouts. I think the general desire is for rates to remain up and a normal market remain but while I'm in line with others that longer term we will settle below here I'm not sure I see any reason at all for rates to come down any time soon other than maybe a cosmetic lifting of 25bp to signal a message of stability?
I think that would imply longer term fixes being better value than short term in the future?
I'm out of the sub-2% bubble in Aug when my 5 year fixed expires, so shopping now.
Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
The spinner of plates said:
I'm out of the sub-2% bubble in Aug when my 5 year fixed expires, so shopping now.
Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
There's no reason for them to not refund your fee if it does not complete.Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
Or you add the fee to the loan to get the lower rate and then pay it off the mortgage on day 1, same net effect as if you'd paid it upfront.......
Sarnie said:
The spinner of plates said:
I'm out of the sub-2% bubble in Aug when my 5 year fixed expires, so shopping now.
Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
There's no reason for them to not refund your fee if it does not complete.Current 5 year fixes are around 4% ish.
Personally I prefer to pay the arrangement fee up front as over the term it's cheaper, but...
My incumbent has offered two 60% LTV deal - one with an arrangement fee and the other a 'fee saver' deal.
In order to hold the better rate I need to pay the fee - if I cancel between now and Aug I won't get that fee back.
Yet if I accept the fee-free deal at a slightly high rate, I can do the paperwork so it's in place, yet can cancel it any time between now and Aug (if something better comes along) and it costs me nothing.
Over 5 years the additional cost of the fee saver is about £140, so seems a low cost gamble of booking something whilst continuing to run the gauntlet for the next few months whilst things settle.
On one hand it seems prudent, on the other it seems a bit cheeky / morally bankrupt thing to do.
Paperwork incoming for full review, but maybe I've not understood their agent on the phone properly?
Or you add the fee to the loan to get the lower rate and then pay it off the mortgage on day 1, same net effect as if you'd paid it upfront.......
She said on the phone in order to 'book the rate' on the fee saver I need to pay the £495 within 5 days of receiving the paperwork.
If I don't, the rate for Aug is not booked. If I don't proceed in Aug and find a new deal, I'll not get my arrangement fee back and forfeit it.
First Direct.
The spinner of plates said:
Got it, thanks.
She said on the phone in order to 'book the rate' on the fee saver I need to pay the £495 within 5 days of receiving the paperwork.
If I don't, the rate for Aug is not booked. If I don't proceed in Aug and find a new deal, I'll not get my arrangement fee back and forfeit it.
First Direct.
I had that issue with FD when i moved last year. Missed out on a 5 year fix at 1.09% as the timings just wouldn't work out and i didn't want to gamble the 500 quid arrangement fee.She said on the phone in order to 'book the rate' on the fee saver I need to pay the £495 within 5 days of receiving the paperwork.
If I don't, the rate for Aug is not booked. If I don't proceed in Aug and find a new deal, I'll not get my arrangement fee back and forfeit it.
First Direct.
I ended up on a 5 year fix at 1.64%. I was raging at the time, but now considering the way the interest rates have went, i count myself lucky.
DonkeyApple said:
CoolHands said:
Anyway so after this increase what’s the outlook for following few months? Will edge back down?
Base rates? The 25bp is a calming number designed to show they want to stop raising but we have all the pay rises from the strike settlements to come in and private sector employment still looks bullish and inflationary also as do all the continued govt handouts. I think the general desire is for rates to remain up and a normal market remain but while I'm in line with others that longer term we will settle below here I'm not sure I see any reason at all for rates to come down any time soon other than maybe a cosmetic lifting of 25bp to signal a message of stability?
I think that would imply longer term fixes being better value than short term in the future?
tting themselves they properly break something now and are starting to realise that the interest rate rises are doing next to heehaw to inflation.I wouldn't be surprised if the Fed hold at the next review and the BoE meat puppets follow as usual. Anything beyond that is a total guess from anyone as it seems every few months there's a new surprise fistful of s
t thrown at the fan from an unknown direction. My useless guess is that rates will be lowered sooner than previously thought.Terzo123 said:
The spinner of plates said:
Got it, thanks.
She said on the phone in order to 'book the rate' on the fee saver I need to pay the £495 within 5 days of receiving the paperwork.
If I don't, the rate for Aug is not booked. If I don't proceed in Aug and find a new deal, I'll not get my arrangement fee back and forfeit it.
First Direct.
I had that issue with FD when i moved last year. Missed out on a 5 year fix at 1.09% as the timings just wouldn't work out and i didn't want to gamble the 500 quid arrangement fee.She said on the phone in order to 'book the rate' on the fee saver I need to pay the £495 within 5 days of receiving the paperwork.
If I don't, the rate for Aug is not booked. If I don't proceed in Aug and find a new deal, I'll not get my arrangement fee back and forfeit it.
First Direct.
I ended up on a 5 year fix at 1.64%. I was raging at the time, but now considering the way the interest rates have went, i count myself lucky.
Fine, I'll sign up to the fee saver one and not proceed at zero cost to me if I find something better in the coming months.
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