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UK Base Interest Rate Rise Aftermath Sees Mortgage Competition Slow

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Moneyfacts UK Mortgage Trends Treasury Report data (not yet published) reveals a sharp slowdown in mortgage competition, just two short months after the Bank of England increased the base rate.

http://www.marketoracle.co.uk/Article61214.html

The reduction in availability has been most keenly felt at the higher loan-to-values (LTVs), with 74 products being withdrawn from the 90% and 95% LTV markets since November, not to mention four providers exiting the 95% LTV sector in just two months”

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But just to add to this. I am looking to buy a house with 85LTV and initially after the raise the best deals for 5 year fixed increased by 5 to 10 bps but since the last two weeks I can see deals that are better rate than I could get before (fees are static for all these deals).

Old best deal (before rate change): 5 year fixed 2.08% changed to 2.13% (temporarily) then reverted to 2.03%
New best deal (current): 5 year fixed 2.00%

So the impact seems to be only on 90LTV or 95 LTV.

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4 hours ago, warrior88 said:

But just to add to this. I am looking to buy a house with 85LTV and initially after the raise the best deals for 5 year fixed increased by 5 to 10 bps but since the last two weeks I can see deals that are better rate than I could get before (fees are static for all these deals).

Old best deal (before rate change): 5 year fixed 2.08% changed to 2.13% (temporarily) then reverted to 2.03%
New best deal (current): 5 year fixed 2.00%

So the impact seems to be only on 90LTV or 95 LTV.

I bought in August 2017 on an 85% LTV and 1.54% with Nationwide and now they're 1.49% AFTER the rate rise. My logic was buy peak fear and low rates. IMHO we got an absolute bargain. 

We're two year fixed so all other things being equal we'll be 80% LTV at remortgage date without prices moving or over-payments but I have got savings to throw at it if need be. 

80% LTV at 1.24%

75% LTV (if I chuck my expected savings in there in 18 months) 1.24% so at the moment I probs wouldn't bother with an over-payment. 

It looks though also like the market with very high equity (LTV of 65% and better) is having marginal increases but that just from memory. 

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20 hours ago, adarmo said:

I bought in August 2017 on an 85% LTV and 1.54% with Nationwide and now they're 1.49% AFTER the rate rise. My logic was buy peak fear and low rates. IMHO we got an absolute bargain. 

We're two year fixed so all other things being equal we'll be 80% LTV at remortgage date without prices moving or over-payments but I have got savings to throw at it if need be. 

80% LTV at 1.24%

75% LTV (if I chuck my expected savings in there in 18 months) 1.24% so at the moment I probs wouldn't bother with an over-payment. 

It looks though also like the market with very high equity (LTV of 65% and better) is having marginal increases but that just from memory. 

Yes - fair point . So any negative impact is not visible at all at anything with 15% deposit or above.

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My way of reading it is that most banks are not touching 90%+ LTV.

It looks like conservative mortgage co. is only going to be happy with 80% LTV ~4 LTE.

Go outside of that and the prices and fees change. A lot.

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On 11/01/2018 at 2:18 PM, adarmo said:

I bought in August 2017 on an 85% LTV and 1.54% with Nationwide and now they're 1.49% AFTER the rate rise. My logic was buy peak fear and low rates. IMHO we got an absolute bargain. 

We're two year fixed so all other things being equal we'll be 80% LTV at remortgage date without prices moving or over-payments but I have got savings to throw at it if need be. 

80% LTV at 1.24%

75% LTV (if I chuck my expected savings in there in 18 months) 1.24% so at the moment I probs wouldn't bother with an over-payment. 

It looks though also like the market with very high equity (LTV of 65% and better) is having marginal increases but that just from memory. 

I was on Nationwide 2.5% bmr (base rate + 2%) for life of mortgage. Yet Brexit gave me jitters and I bailed. 

Not sure if this is a wise or alarmist move, only time will tell. Only the brave/fools can safety predict what’s around the corner these days.

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44 minutes ago, PopGun said:

I was on Nationwide 2.5% bmr (base rate + 2%) for life of mortgage. Yet Brexit gave me jitters and I bailed. 

Not sure if this is a wise or alarmist move, only time will tell. Only the brave/fools can safety predict what’s around the corner these days.

I agree only a fool can claim to know what the future holds. I very simply took a view that the time I'm most likely to bag a bargain is when I'm not fighting elbows around each open house.

Brexit, or no Brexit c'est plus ca change.

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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