[JLR1969]

Originally Posted by isleaiw1

Offers in excess of are the norm round here so you can definitely negotiate upwards...

Maybe read my comments.......

I said normally you cannot negotiate upwards not that it was impossible, I would also argue that receiving offers above asking is not negotiating but you tend to disagree with anything I post so maybe just put me on ignore and we can both be happy

[Pond]

Originally Posted by JLR1969

Why would you go 5% less than normal just because you assume the market has moved.

You normally cannot negotiate upwards so I would put at a higher price and then gauge number of viewings etc and then review after 4 weeks.

Follow your instinct and dont listen too much to estate agents as they are desperate for sales at this time of the year and will do anything to get a sale.

If you get interest in the house then you can discuss price when/if you get offers.

If people like the house then it wont stop them viewing it.

The market where I live has taken a sudden drop. For 18 months now our local prices have been mental (up an average of 30%). I don't want to be uncompetitive and it's all relative anyway IMO. I look at moving house like part-exchanging a car; it's the final figure that counts. I am 'down-sizing' again, so the amount we can stick in the bank is the important figure for me, as well as getting a house I like, rather than the present one which I don't.

[DO444]

Originally Posted by KRS_SN

Just a quick thank you to everyone who responded to my query. Especially who recommended an immediate 5 year fix.
2 months on and 5 year fixed rates with £999 booking fees are up from the 1.74% I locked them on to 2.44% as of today.
I'm not glad that they are rising as it is going to cause pain to many. Just thankful that for the moment I'm ok.

Glad you locked in.
Anything having to do with interest rates, car, home, loan… lock it in.
Nothing is going anywhere but higher.

Inflation is at 11% now and the central banks have repeatedly said they will not yield until inflation is controlled, which will not happen without major pain.

It’s true I’m not English, but as the news today shows… you made the right call. In this financial environment you want to lock everything in as soon as you can, cause rates aren’t going anywhere but up.

Glad you got it sorted!

[agentorange]

Originally Posted by DO444

Glad you locked in.
Anything having to do with interest rates, car, home, loan… lock it in.
Nothing is going anywhere but higher.

Inflation is at 11% now and the central banks have repeatedly said they will not yield until inflation is controlled, which will not happen without major pain.

It’s true I’m not English, but as the news today shows… you made the right call. In this financial environment you want to lock everything in as soon as you can, cause rates aren’t going anywhere but up.

Glad you got it sorted!

You do realize that in the UK fixed rate mortgages that remain fixed over the whole term are quite rare.

The 30-year mortgage I got in 2016 is a bit under 4%, and I had multiple emails and letters about refinancing. Thing is I find all the costs involved far too high for the actual amount of work done. Some mortgage brokers down here are asking for $5k or more for refinancing. You have to look at how long it will take you to get back that $5k versus how long you intend to live in the home. As things have turned out I am going to be here a bit longer than originally planned, so a refi may have worked for me. Still, I'd never claim to live a perfect life.

[KRS_SN]

Originally Posted by DO444

Glad you locked in.
Anything having to do with interest rates, car, home, loan… lock it in.
Nothing is going anywhere but higher.

Inflation is at 11% now and the central banks have repeatedly said they will not yield until inflation is controlled, which will not happen without major pain.

It’s true I’m not English, but as the news today shows… you made the right call. In this financial environment you want to lock everything in as soon as you can, cause rates aren’t going anywhere but up.

Glad you got it sorted!

Thanks my mortgage fix is for another 4.5 yrs and by then the house is paid off. One of my fears was that I'm too underborrowed but for the moment this seems like a good position to be in.

[Pond]

Originally Posted by KRS_SN

One of my fears was that I'm too underborrowed

Now that is a 21st century fear if ever I heard one!

Luckily the majority (from what I hear on the news) are more 'overborrowed', so all will be well with the world!

[DO444]

Originally Posted by agentorange

You do realize that in the UK fixed rate mortgages that remain fixed over the whole term are quite rare.

The 30-year mortgage I got in 2016 is a bit under 4%, and I had multiple emails and letters about refinancing. Thing is I find all the costs involved far too high for the actual amount of work done. Some mortgage brokers down here are asking for $5k or more for refinancing. You have to look at how long it will take you to get back that $5k versus how long you intend to live in the home. As things have turned out I am going to be here a bit longer than originally planned, so a refi may have worked for me. Still, I'd never claim to live a perfect life.

Yea, I saw that.
After realizing I was in a UK forum I went and read up on your system… but the fact remains pretty much the same, you want to lock any internet rate sensitive loans in for as long a time as you can, because it is well established that interest rates are not going anywhere but up for the foreseeable future. The interest rate in the US has nearly TRIPLED in one year. I’m at 2.75% for the life of the loan and it’s now over 7%. The UK is different but you’re still seeing the same trend… it’s going up.

The central banks keep saying the same thing and some people keep thinking they aren’t serious. The past year has seen blistering rate hikes and there is no indication that they will stop until inflation calms down, which hasn’t even begun to happen.

I think this person will be glad they don’t have to refi for 5 years. I guess we’ll find out.

Yea, I understand your system is different. It sounds awful to me to be stuck with what sounds like an ARM in our system, especially in this environment. But 5 years is a decent amount of time (especially if political winds change)… if they don’t, I’ll wager the person will wish for a 10 year lock but you take what you can get.

If you are sure you are moving within a period of time, then sure it becomes a different calculation. I assumed this person was not moving. Talking with UK people can be somewhat difficult for me, and I’m trying to be polite as possible and not blunt like I usually am. Hopefully that comes across.

Thnx.

[NotGotABimmer23]

Originally Posted by DO444

Yea, I saw that.
After realizing I was in a UK forum I went and read up on your system… but the fact remains pretty much the same, you want to lock any internet rate sensitive loans in for as long a time as you can, because it is well established that interest rates are not going anywhere but up for the foreseeable future. The interest rate in the US has nearly TRIPLED in one year. I’m at 2.75% for the life of the loan and it’s now over 7%. The UK is different but you’re still seeing the same trend… it’s going up.

The central banks keep saying the same thing and some people keep thinking they aren’t serious. The past year has seen blistering rate hikes and there is no indication that they will stop until inflation calms down, which hasn’t even begun to happen.

I think this person will be glad they don’t have to refi for 5 years. I guess we’ll find out.

Yea, I understand your system is different. It sounds awful to me to be stuck with what sounds like an ARM in our system, especially in this environment. But 5 years is a decent amount of time (especially if political winds change)… if they don’t, I’ll wager the person will wish for a 10 year lock but you take what you can get.

If you are sure you are moving within a period of time, then sure it becomes a different calculation. I assumed this person was not moving. Talking with UK people can be somewhat difficult for me, and I’m trying to be polite as possible and not blunt like I usually am. Hopefully that comes across.

Thnx.

Mortgage rates in the UK aren't going up, they are coming down from the peak which was driven by massive uncertainty around the mini budget. Mortgages aren't priced on spot rates, so the fact that base rate is going to go up further doesn't mean mortgage rates follow! There are large penalties associated with switching out mid term if you fix onto a rate which in 6 months time could well be quite a bit lower. If it were me I'd potentially look at a tracker and then consider refixing next year, clearly depends on your risk appetite though.

[isleaiw1]

The bit that you miss with your comment is that the fixed rates on offer now include a prediction for what the market thinks will happen in the future. If they think it will rise they price that in. If they think it will rise and are uncertain how much, they price in a poor outcome as an allowance for risk.

So if the next autumn statement (budget) makes them feel better than inflation will come down and govt finances are under control, if the BoE increasing rates by 0.75% this week makes them think inflation might come down sooner, they may reprice those fixed to a lower rate, even though we still expect rates to increase.... just by less in total.

Its really not as simple as you make out.

I'm fixed for one more year, I may move and downsize at that point, or I may fix and stay for another 5 years. I will not be attempting a fix now as another 12 months gives more chance for things to be under control, more chance for fixes to be cheaper than they were 6 weeks ago, or now, and more time for me to plan.

Do I wish I had taken a longer fix at a lower rate 3 years ago? Possibly - but no one knows what the future brings and you cant beat yourself up for not having the foresight of hindsight!

[NotGotABimmer23]

Originally Posted by isleaiw1

The bit that you miss with your comment is that the fixed rates on offer now include a prediction for what the market thinks will happen in the future. If they think it will rise they price that in. If they think it will rise and are uncertain how much, they price in a poor outcome as an allowance for risk.

So if the next autumn statement (budget) makes them feel better than inflation will come down and govt finances are under control, if the BoE increasing rates by 0.75% this week makes them think inflation might come down sooner, they may reprice those fixed to a lower rate, even though we still expect rates to increase.... just by less in total.

Its really not as simple as you make out.

I'm fixed for one more year, I may move and downsize at that point, or I may fix and stay for another 5 years. I will not be attempting a fix now as another 12 months gives more chance for things to be under control, more chance for fixes to be cheaper than they were 6 weeks ago, or now, and more time for me to plan.

Do I wish I had taken a longer fix at a lower rate 3 years ago? Possibly - but no one knows what the future brings and you cant beat yourself up for not having the foresight of hindsight!

He (like a lot of people) has no idea on how mortgages are priced, it's a losing battle... Swap rates have come down considerably since the peak, by about 1.5% across the yield curve, and I think there might be more to come, and with the yield curve being inverted a 5yr fixed taken out in a year's time will be cheaper than one taken now, assuming nothing changes, which I'm sure it will, be still...

[MashinBenzin]

Originally Posted by kylemacca01

He (like a lot of people) has no idea on how mortgages are priced, it's a losing battle... Swap rates have come down considerably since the peak, by about 1.5% across the yield curve, and I think there might be more to come, and with the yield curve being inverted a 5yr fixed taken out in a year's time will be cheaper than one taken now, assuming nothing changes, which I'm sure it will, be still...

Yes, I think there is a misconception that the price changes only with a base rate change. As you and Ian both have said, these current rates, next years higher rates and the predicted lower following rates are are already priced in. Hence 5 year fixed rates below 2 year rates.

[Pond]

Just as an aside to this interest rate/mortgage rate discussion:

I have just got my daughter a junior ISA at 3.60%; 0.60% OVER BoE rate. Tells me they are predicting higher rates, no matter what happens with markets liking the current Gov stance.

I haven't seen rates like that for 25 years.

[NotGotABimmer23]

Originally Posted by Pond

Just as an aside to this interest rate/mortgage rate discussion:

I have just got my daughter a junior ISA at 3.60%; 0.60% OVER BoE rate. Tells me they are predicting higher rates, no matter what happens with markets liking the current Gov stance.

I haven't seen rates like that for 25 years.

Junior ISAs were >3% when base rate was 50bps, they always pay well.

[gangzoom]

Originally Posted by Pond

Just as an aside to this interest rate/mortgage rate discussion:

I have just got my daughter a junior ISA at 3.60%; 0.60% OVER BoE rate. Tells me they are predicting higher rates, no matter what happens with markets liking the current Gov stance.

I haven't seen rates like that for 25 years.

Santander 18 months fixed are at over 4% now, takes minutes to open an account.

I was hoping 5% will be here soon, but for now 4% seems to be the best, still bears the 1% rates from 12 months ago.

[MashinBenzin]

Originally Posted by kylemacca01

Junior ISAs were >3% when base rate was 50bps, they always pay well.

Yep. I think the lowest rate I've seen on my daughter's JISA (opened in 2017) is 2.25%, now is actually the worst it's been versus base and inflation.

[Scoobyd]

A better steer is the NS&I Direct Saver account which is still only 1.8%