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My remortgage date is coming up in Oct to I’ve started monitoring and researching for 5 year fix (lowest LTV).

Start of the week I was offered 1.19, same as it’s been for months.

Mid week 1.16.

Now 1.14 (via broker).

 

 

Edited by PeanutButter
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2 hours ago, PeanutButter said:

My remortgage date is coming up in Oct to I’ve started monitoring and researching for 5 year fix (lowest LTV).

Start of the week I was offered 1.19, same as it’s been for months.

Mid week 1.16.

Now 1.14 (via broker).

 

 

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

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12 minutes ago, Si1 said:

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

IMO Loyalty means F all to these places. You're a number, nothing more. Annoyingly the money advice service used to run a really useful whole of market comparison tool but they ditched it at the second to last rebrand (and currently rebranding AGAIN). All I do is use a few of the free comparison sites - I doubt any of them are really whole of market and unbiased. 

When I was a FTB I paid £250 for an independent mortgage broker, who then proceeded to recommend the exact same mortgage I had found myself. Sometimes they are useful though, if you've got a tricky credit history or need max leveraging etc. 

Main thing is to monitor the market so you come to it with a knowledge of what's a good deal and what is not.

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24 minutes ago, Si1 said:

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

As above but after you have checked rates yourself also check with a free mortgage broker.

Yes they get their fee from the bank so in theory it's more expensive.. however there are some rates only available to brokers.

So.. after you have checked you know what the best rate you can get is always worth finding out if it can be beaten 

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2 hours ago, Si1 said:

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

I had the same experience as @PeanutButterlast year when we got our mortgage. Went through a broker anyway as I knew one personally, and he did us mates rates. He did in the end advise us to get the same product I had picked myself already. However, I would say it was worth the money regardless as it took all the stress off me for that part of moving at least having someone experienced filling in the forms, chasing things along, dealing with a little hiccup along the way and so on. I would certainly recommend using a broker for the whole affair, even if they don't find you any amazing brokers only product. No harm with doing it yourself, and you could just book in with a mortgage advisor at any bank for a consultation, but lots of brokers will not charge you anyway, and the ones that do are a few hundred quid at most, so in the grand scheme of things not a huge amount of cash...

Edited by Twenty Something
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2 hours ago, Si1 said:

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

In my experience as a FTB (or remortgager, or any mortgage TBH) , the LTV has far more weighting for a good rate than anything else.  If you can "suffer" with one bedroom less, or a slightly less good area, and keep the LTV in your favour, you can save a good 2-3% on the annual rate. Adds up over 10 years plus. 

 

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Indeed, the best way to get the best rate is to have the biggest deposit you can.   It's a huge ask as a FTB but all the decent deals are aimed at the 60% LTV area.  You will find the interest rate will rise as your LTV goes up.  Have you got a help to buy ISA or lifetime ISA sorted?  It's a quick way to get a bit more money.  it really does seem to be the LTV that is the determining factor these days.

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4 hours ago, PeanutButter said:

IMO Loyalty means F all to these places. You're a number, nothing more. Annoyingly the money advice service used to run a really useful whole of market comparison tool but they ditched it at the second to last rebrand (and currently rebranding AGAIN). All I do is use a few of the free comparison sites - I doubt any of them are really whole of market and unbiased. 

When I was a FTB I paid £250 for an independent mortgage broker, who then proceeded to recommend the exact same mortgage I had found myself. Sometimes they are useful though, if you've got a tricky credit history or need max leveraging etc. 

Main thing is to monitor the market so you come to it with a knowledge of what's a good deal and what is not.

I agree, for my first mortgage, I spoke with a broker...

She couldn't get a cheaper rate than what I could find through comparison sites.

They are basically parasites.

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The idea is you buy a property with around 75-80% LTV, wait 5-10 years. Generally by that point the BOE have started more QE and money printing.  Your house will be worth about 40% more, you remortgage at 60LTV or even more favourably.

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11 minutes ago, FTB-house-hunter said:

Indeed, the best way to get the best rate is to have the biggest deposit you can.   It's a huge ask as a FTB but all the decent deals are aimed at the 60% LTV area.  You will find the interest rate will rise as your LTV goes up.  Have you got a help to buy ISA or lifetime ISA sorted?  It's a quick way to get a bit more money.  it really does seem to be the LTV that is the determining factor these days.

I'm looking at roughly 65% LTV, hoping we get some softness in the autumn months. Used HTB ISA (me, old fart) and LISA (missus) bigtime

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55 minutes ago, Si1 said:

I'm looking at roughly 65% LTV, hoping we get some softness in the autumn months. Used HTB ISA (me, old fart) and LISA (missus) bigtime

You might be lucky and get one of the places that overpriced at first, then have sat over summer. Nothing like no viewings all July/Aug to get seller’s brains melting :D 

 

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4 minutes ago, PeanutButter said:

You might be lucky and get one of the places that overpriced at first, then have sat over summer. Nothing like no viewings all July/Aug to get seller’s brains melting :D 

 

Or one where the mortgage valuation was insufficient.

I'm trying to follow Pop321's wisdom on this.

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On 6/19/2021 at 10:55 AM, PeanutButter said:

Now 1.14 (via broker)

Excellent rate. Do you mind me asking who the lender is? The best rate I can find online myself is 1.2% - that's fixed for 5 years but with 60% LTV.

I have seen 'headline' rates of sub 1% but when you dig a little deeper you cant actually find them...

It would be ace to have a mortgage rates thread that some how just scrapped data from all the lenders site on a daily basis so you could instantly see good deals. I bet such a thing exists. A bot or something prehaps...?

Lending rates are a bit of a barometer too for the entire economy so its always interesting [well to me anyway] 

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4 minutes ago, Data Dave said:

Excellent rate. Do you mind me asking who the lender is? The best rate I can find online myself is 1.2% - that's fixed for 5 years but with 60% LTV.

I have seen 'headline' rates of sub 1% but when you dig a little deeper you cant actually find them...

It would be ace to have a mortgage rates thread that some how just scrapped data from all the lenders site on a daily basis so you could instantly see good deals. I bet such a thing exists. A bot or something prehaps...?

Lending rates are a bit of a barometer too for the entire economy so its always interesting [well to me anyway] 

https://www.nationwide-intermediary.co.uk/news/2021/june/reprice

Hefty fee. 

 

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On 19/06/2021 at 10:55, PeanutButter said:

My remortgage date is coming up in Oct to I’ve started monitoring and researching for 5 year fix (lowest LTV).

Start of the week I was offered 1.19, same as it’s been for months.

Mid week 1.16.

Now 1.14 (via broker).

 

 

This tells us that lenders are not expecting the base rate to move dramatically up for the next several years.

If base rates were to move above 2% within 2 years this would have been a bad bet for them.

I suppose they restrict the amount of safer low level lending to a small proportion of their business? Hedging their bets?

Maybe some one in the industry could tell me.

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21 minutes ago, Flat Bear said:

This tells us that lenders are not expecting the base rate to move dramatically up for the next several years.

No, it tells use that bond markets expect that instead, buoyed by quantitative easing. I think ;)

21 minutes ago, Flat Bear said:

If base rates were to move above 2% within 2 years this would have been a bad bet for them.

I suppose they restrict the amount of safer low level lending to a small proportion of their business? Hedging their bets?

Maybe some one in the industry could tell me.

 

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On 19/06/2021 at 13:23, Si1 said:

As a first time buyer, what's my best strategy for getting a good FTB mortgage? I bank everyday with Nationwide and they seem to have competitive mortgage rates, so I was thinking it's easy and good enough just to go straight to them, or is it?

What's the pointin getting a good mortgage rate when house prices are 80% over priced :ph34r:

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4 minutes ago, TheCountOfNowhere said:

What's the pointin getting a good mortgage rate when house prices are 80% over priced :ph34r:

I'd say they're no more than 30% overpriced where I am. So a 20% fall would correct that, and of course they could fall further. But it's not as bad as the London and SE market. Or Devon near a good artisanal coffee shop.

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1 hour ago, Flat Bear said:

This tells us that lenders are not expecting the base rate to move dramatically up for the next several years.

If base rates were to move above 2% within 2 years this would have been a bad bet for them.

I suppose they restrict the amount of safer low level lending to a small proportion of their business? Hedging their bets?

Maybe some one in the industry could tell me.

Looking at mortgage rates from the past/present

One of my directors has a mortgage tracker for the life of the mortgage (17 years remained) @ .15 above base rate so he has been paying 0.25% for several years

I understand HSBC are currently offering a 0.1% above base rate tracker for 2 years, so just 0.2% currenly.

Conclusion, money has been very cheap for quite some time and still is. For safer bets at least.

Added

Maybe the conclusion should be the banks have too much cheap liquidity due to QE forced upon them and are trying to find the safest place to park it for as long as possible? Are these 75% LTV any more risky than treasury bonds? Is the yield from a treasury bond much less?

There are still numerous buy now pay in 1 year/2 year /3 year offers around are there not?

Edited by Flat Bear
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3 hours ago, Flat Bear said:

Looking at mortgage rates from the past/present

One of my directors has a mortgage tracker for the life of the mortgage (17 years remained) @ .15 above base rate so he has been paying 0.25% for several years

I understand HSBC are currently offering a 0.1% above base rate tracker for 2 years, so just 0.2% currenly.

Conclusion, money has been very cheap for quite some time and still is. For safer bets at least.

Added

Maybe the conclusion should be the banks have too much cheap liquidity due to QE forced upon them and are trying to find the safest place to park it for as long as possible? Are these 75% LTV any more risky than treasury bonds? Is the yield from a treasury bond much less?

There are still numerous buy now pay in 1 year/2 year /3 year offers around are there not?

Is the yield from a treasury bond much less?

Answering my own question

10 year bond yields approx 1.6%

2 year bonds have just increased to 0.26% which is the highest in 4 years but still very low (long term average 3.2%)

1 year is this week 0.08 up from 0.06 a month ago.

So even a 0.2% mortgage rate looks attractive as long as it is ultra safe and for no longer than 3 years. They would need a 0.5% to make it worthwhile over 5 years.

The yield curve is going up though albeit from a very low base.

Conclusion bonds yields are increasing quite quickly but still very very low historically and ultra low mortgages still give banks relatively good margins for the very short to medium term. I think this is a fair assessment?

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16 hours ago, Flat Bear said:

Looking at mortgage rates from the past/present

One of my directors has a mortgage tracker for the life of the mortgage (17 years remained) @ .15 above base rate so he has been paying 0.25% for several years

I understand HSBC are currently offering a 0.1% above base rate tracker for 2 years, so just 0.2% currenly.

Conclusion, money has been very cheap for quite some time and still is. For safer bets at least.

Added

Maybe the conclusion should be the banks have too much cheap liquidity due to QE forced upon them and are trying to find the safest place to park it for as long as possible? Are these 75% LTV any more risky than treasury bonds? Is the yield from a treasury bond much less?

There are still numerous buy now pay in 1 year/2 year /3 year offers around are there not?

Banks dont really get the QE money, UKGOV does.

Banks are restricted in paying out divi or taking cash out of the UK. Thats why the likes of HSBC and Santander are offering good deals - they cannot do anything with the cash.

Your director 0.25 tracker was down to some gormless underwriter.

Money isnt cheap for everyone, well, mortgages.

Its quite expensive as most banks require at least 20% upfront.

If money was cheap there would be more lending.

Gilts are far safer than mortgage debt.

UKGOV can always pay its debt - it borrows in a currency that it prints.

The same cannot be said for someone with a 75% mortgage.

 

 

 

 

 

 

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On 19/06/2021 at 18:35, FTB-house-hunter said:

Indeed, the best way to get the best rate is to have the biggest deposit you can. hand over a 60% deposit on a house that is double the price it should be.

If a deal's too good to be true.


Why the hell do people think they are handing out these low IR/High LTV loans ?

 

 

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