Hi All,
Best remortgage rates including fees today:
50% LTV
2 year fixed 6.39%
5 year fixed 5.65%
2 year tracker 5.75%
I’ve waited to update you to see how things settled. We had another jump in rates since I last wrote but lenders have already started cutting back down again. I am wary of saying it but there does seem to be a feeling that we have reached the top or are near to it. However, the climb back down feels like it might be a lot slower. Swap rates are slightly lower but nothing significant which suggests that rates will stay near to where they are for now.
When I took my first mortgage out in 2006 my interest rate was 6% (or something around that). That was normal at the time and considered a good deal. When rates tumbled and I refixed at 2% it felt crazy. It felt like I was getting my mortgage near on for free. As hard as our cost of living is I do think it is important to frame in our heads that rates of 4/5% are pretty normal despite the current media coverage. Interest rates of 1 or 2% were never meant to be around so long. The prediction for where interest rates will end up is around 4% so prepare yourself to have a mortgage at that price point in the long term. I can work out how much that is in monthly payments for you any time – just ask me. The difference now is the squeeze in all other areas – energy, food and just living in general. I think it’s important that we set your expectations that rates will never go back as low as 1 or 2% potentially in our lifetime. However the competition between lenders should hopefully help bring things down to a better place than they are now as they all have money they want and need to lend.
It has been very quiet in August due to rates topping 6% on top of the normal summer recess. It will be interesting to see what happens in September. I’m seeing a few first-time buyers raising their head above the parapet and accepting the new normal of costs and looking for a bargain. Up to 20% less than asking price is becoming normal to at least offer, whether it’s accepted or not is another thing. If you’re in a strong buying position now might be the time. Anyone that does need to sell is likely to come on in September in time to get things done before Christmas. Once we hit November, I would imagine things will be very quiet until next year. If you do need to sell an interesting tactic, I’m seeing is listing higher than it’s worth as buyers want to feel like they’ve got a deal at the moment and won’t go to asking price. It’s an interesting time! As much as buyers are wanting to offer less generally big house price drops aren’t being seen. I don’t think there will be a huge crash personally, just a small reduction. Rental markets remain crazy. I just had a big turnover of tenants due to an issue in an HMO and I rented all the empty rooms without advertising at over 20% increases of rent. Never seen anything like it!
As always I’m here to help so be ahead of the game and get in contact with me to check all your facts and figures early so you’re prepared for any mortgage payment changes. I know I haven’t been consistent with sending this update but I will send it as and when I feel something is pertinent. Feel free to forward on to others. If you want to discuss any aspect of mortgage stuff book in with me here https://calendly.com/sarahcruze/30min
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