[Finance] Mortgages 2022

Uncle Spielberg · Apr 21, 2022

Mortgage rates have been on an upward trajectory since January due primarily to three recent Bank of England base rate rises. Combined with the cost of living crisis and the war in Ukraine, these events have coincided to create a perfect storm in the mortgage industry.

Two things are likely to happen this year:

- Firstly, those who took out a mortgage in the last two to five years and find themselves approaching a rate review, either via re-mortgage or product transfer are likely to experience a payment shock as the rates on offer are now broadly higher.

- Secondly, most lenders have made adjustments to their affordability calculators, factoring in inflation and the higher cost of living experienced by many households. In many instances, this could mean those looking for a new mortgage find they are unable to borrow as much as they previously could.

You can prepare for this, and give yourself a chance of securing the best possible deal, by looking around 6 months before the rate ends

I have arranged mortgages for many NSCers over the years, and I am happy to help anyone who wants to see what may be available to them.

You can PM me on NSC, or contact me via my website.

US/GG

mothy · Apr 21, 2022

What's the rate decision going to be on the 4th May?

Shropshire Seagull · Apr 21, 2022

Does all this financial pressure coming up over the next 12+ months point to a probable upward trend of bankruptcy and repossessions as folk effectively live beyond their means?

zefarelly · Apr 21, 2022

Shropshire Seagull said:
Does all this financial pressure coming up over the next 12+ months point to a probable upward trend of bankruptcy and repossessions as folk effectively live beyond their means?

It'll be interesting to see if it makes the car bubble burst. you'd have thought people would let material non necessities go before the roof over their heads.

happypig · Apr 21, 2022

zefarelly said:
It'll be interesting to see if it makes the car bubble burst. you'd have thought people would let material non necessities go before the roof over their heads.

Too many are tied into a leasing deal these days. Getting out of them can be quite difficult/expensive.

LamieRobertson · Apr 21, 2022

mothy said:
What's the rate decision going to be on the 4th May?

Blimey US is good but I never knew he was on the Bank of England Monetary Policy Committee

Bozza · Apr 21, 2022

mothy said:
What's the rate decision going to be on the 4th May?

Current forecasts are for another 0.25% rise.

beorhthelm · Apr 21, 2022

mothy said:
What's the rate decision going to be on the 4th May?

it wont be down, 0 to 0.25% increase (there will be an increase).

Lego-Stand · Apr 21, 2022

We used US the end of last year, I think if we waited the best 5 year fixed rate is 2.7% and we got at the time 1.45% which is a saving of £82 a month or £4100 over the 5 years.
I still haven't bought him a pint

LamieRobertson · Apr 21, 2022

Bozza said:
Current forecasts are for another 0.25% rise.

Aye that seems the way…although nothing certain..next meeting May 5th

https://tradingeconomics.com/united-kingdom/interest-rate

beorhthelm · Apr 21, 2022

zefarelly said:
It'll be interesting to see if it makes the car bubble burst. you'd have thought people would let material non necessities go before the roof over their heads.

for most their car is a necessity. the Netflix will go, reduce the Sky package and maybe cut the gym before the car. a lot of car financing is underwritten (even provided?) by manufacturers, so they'll absorb some interest rate rise.

MattBackHome · Apr 21, 2022

Yep, once again I will vouch for US who we used a couple of months ago. He's great.

I would also echo his advice to start the ball rolling 6 months before your due date.

jakarta · Apr 21, 2022

Mortgage paid off. If you have a wedge somewhere (and happily we did via my late Mother-in-Laws house sale) can I just say use it to pay it off, your mental health will improve dramatically.

bhanutz · Apr 21, 2022

jakarta said:
Mortgage paid off. If you have a wedge somewhere (and happily we did via my late Mother-in-Laws house sale) can I just say use it to pay it off, your mental health will improve dramatically.

Depends what rate you are on..... If I can't get more than 1.99% by investing... I need to give up!

Springal · Apr 21, 2022

zefarelly said:
It'll be interesting to see if it makes the car bubble burst. you'd have thought people would let material non necessities go before the roof over their heads.

No-one is selling new cars anyway - and if they are, they are expensive. MB + BMW have closed their order books for a bit due to the component shortages.

Used cars are at all time high, someone I work with sold a 2 year old BMW 2 Series with 9k miles for £28k cash, went on the dealer forecourt for £32k and was gone within a week.

Demand is still way greater than the supply of cars at the moment so doubt we'll see much impact there

zefarelly · Apr 21, 2022

bhanutz said:
Depends what rate you are on..... If I can't get more than 1.99% by investing... I need to give up!

I have in the past considered flogging off the contents of my toy cupboard . . and payng off the mortgage, but its appreciating faster than the interest rate on my mortgage . . . . and I'd have nothing to have no toys to play with.

I don't believe most cars, and/or peoples choice of car is a necessity. I didn't 'need' a snazzy Alfa to get to work . . . a fiesta would have done the job. . . . choices. I agree re 2nd hand cars, I must have been one of the first people ever to make a profit on a 2nd hand Alfa earlier this year :lolol:

Green Cross Code Man · Apr 21, 2022

I contacted Gareth, I think in December to get things underway, although I'm still tied in until my fixed rate ends at the start of May. Gareth was able to secure a great deal even though we were months away from when we could switch. I am more than happy to recommend him as he has always replied quickly and helpfully to any questions I've had and he has also helped with life insurance which I am more than pleased about. So far so good, I am waiting for my mortgage to switch in a couple of weeks and looking forward to the savings that I have made.

EastStandRemainer · Apr 23, 2022

Gareth helped us with our remortgage at the end of last year and secured a rate 1% lower than we would have been able to get ourselves. This will save us hundreds of pounds a year and thousands over the 5 year fixed term. Highly recommended especially with all the current uncertainty and BOE rate increases.

Brighthelmstone · Apr 23, 2022

Generally whats the max age for a Mortgage now? as in how long can i get one for!

Papak · Apr 23, 2022

Looking to renew my BTW from a Santander 5 year fixed rate later this year [MENTION=3887]Uncle Spielberg[/MENTION] please let me know if you can assist? Thanks

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[Finance] Mortgages 2022

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