All Activity

Santander have announced rates are increasing tomorrow, so it looks like I was wise to lock the current one in.

I have got the 4.46% fixed rate locked in for 14 days and will see what happens at the next BoE meeting. My mortgage broker says I need to do what's right for me and I would prefer to know what is going out each month. I think his opinion is stick with the tracker for now even if it is more. It's probably going to drop 0.25% in the next couple of months or so and maybe further by the end of the year. He's confident by 2026 it could be as low as 3% but it's all speculation. With the 5 year fix Santander will charge an ERC of 5% in the first 2 years, 3% the next 2 and 1% in the last. If we move in 2-4 years time and need to repay a chunk of the mortgage back that's going to wipe out any saving I would've made fixing the rate and overpaying. If I extend the term and switch back to a repayment mortgage that makes the payments more comfortable on the tracker. Our tracker is 0.34% and we have that until September 2025. By then we could be seeing alot of rates under 4% so maybe the tracker is better. I would just have to hope the base rate doesn't actually increase rather than drop! Unlikely but you just never know.

It's always a gamble... But fixing for 5 years would give you the financial certainty that you know your monthly outgoings

Seems some providers are increasing fixed rates again! I have no idea what to do now. I can take 4.46% for 5 years, which is 1.17% less than my current tracker but once I accept it I can't change to a lower rate penalty free. It could take a year for the BoE to drop the base rate by 1%, that's if it even goes that low. Will find out what my exact payrise will be next week so can then make a decision.

as usual its always the smaller businesses that take the brunt end of stupid legislation...

And existing owners can't do this without paying stamp duty again........

unless you set yourself up as a limited company... I can see why all this is putting private landlords off

Yep - as an example, interest is fully deductible for corporates, not for private landlords.

You mean there is a different tax relief regime?

Definitely - not all private landlords are great and the system definitely needs more control in place for how they operate but now that all reliefs have been removed for private landlords but not for corporate landlords it's created the perfect environment for them to simply buy up everything (which they are doing rapidly).

Is there a war on private landlords? My experience of renting when I was younger was not a good one. The balance of power was always with the landlords. We should have rent controls here and I agree that everyone should have an affordable home. Having said that, stopping speculation is easier said than done - specially when we have politicians that are as bent as nine bob notes 🤣

I didn't realise lots of property was being bought by investment companies. That is so wrong. People should be entitled to buy their own home at an affordable price. I was in North Norfolk today, we're looking to move close to Norwich and I couldn't believe the difference in price looking at the estate agent window. A 4 bedroom detached house with double garage was £325,000. Close to Norwich you're looking at around £450,000. Where we currently live you could double that! 😳

Exactly, it's a perfect storm. Also the war on the private landlord was made to look like it'll free up a lot of property for people to buy, but that's not happening at all - it's all being snapped up by the likes of Blackstone in their 1000s so the property market is about to get a whole lot worse........

I completely agree. People may not have invested in property if they were getting a good return on their savings. Property values probably wouldn't have increased so much allowing more people to buy too. Now we have lots of people with massive mortgages who's fixed rate deals have finished or will do soon, that are facing having to pay hundreds extra each month. It's easy to say well they would've been stress tested but no one could've predicted utility bills, fuel, food etc increasing in price like it has at the same time.

This is the key, if interest rates had never dropped to such a ridiculously low level we never would have ended up in the mess that we are in. It's funny when you think that those who created the 2008 financial crisis are the ones who have benefited the most from the post 2008 financial environment......... 🙄

Gotcha! 👍🏼 Yes I agree, everyone should be able to buy a house, especially when rents are usually more than the mortgage payments. My Dad had a second house but sold it last year after his tenant moved. He did well out of it but now interest rates have gone up he's making the same return from having the money in the bank as he was in the rent he received.

https://www.investegate.co.uk/category/directors-dealings

The stock market seems to be hitting new highs - Dow at 40,000, FTSE at whatever it is - seems to be doing ok but I see that insiders, ie company owners and directors are making big sales cashing out some of their stakes. Hard to say what the next few months will bring, if I knew or was any good I would be a lot richer than I am

Hi Rich We moved part was through a fixed term mortgage so had to take a second mortgage to bridge the gap from old house to new. Wish I did own another property as that's where the real investment is (wrongly so). A house should be a home, not a capital investment

No change in the base rate but 8 voted to freeze and 1 reduce. So could be a sign that at the next meeting more will vote to reduce. I'd imagine a reduction will happen in the summer. Fingers crossed this encourages lenders to drop fixed rates again. Get to 4% or under and I definitely won't be hesitating to fix this time. If I had gone for the 3.89% fix I'd be saving around £150 a month now, based on the same terms. I am still on interest only though and really want to get back on to a repayment plan but not on my current tracker. Switched to interest only as we were going to move and other bills were still high but for the last 18 months I've paid nothing off the capital. Now things have come down and I've since had a payrise I need to start overpaying it asap. Now rates are higher I'm definitely taking more of an interest in this. When we first bought the house the 5 year fix was around 2.8% but I didn't even consider changing it when rates dropped to 1% or below. But at the time Santander didn't step down their ERC so you'd be liable for the lot if you switched products. When I looked at the ERC terms for the fixed rates they do now it says they step down. I don't do shares, any idea why that might be happening? Congratulations on paying one of the mortgages off, must be a relief. I assume you must rent that property out. How do you find being a landlord? The election is likely to be after the summer isn't it. Maybe things will change as we get closer to it.

Seems to be a lot of weird stuff going on in the market. Lots of people seem to be selling serious volumes of shares and liquidating assets. Some of my shares have jumped in price significantly too over the past couple of months so will be keeping a close eye on things. I was lucky enough to clear one of my mortgages this month.. Its only been going for 13 years and I have significantly overpaid to burn it down as fast as possible.. Also helped by a significant redundancy pay back in 2021. One mortgage left now but that's the bigger of the two now at £110k which is up for renewal soon... I keep seeing rates being pulled which is normal this close to a ~clown party~ election... But it does question what will happen!

Possibly, that would be nice. Still kicking myself I didn't go for the 3.89%. Hopefully it drops to that point again soon or lower. See what happens on Thursday with the BoE meeting. Although fixed rate deals go by the swap rates and not the base rates so it might not have any impact. I think it'll stay on 5.25%.

Interesting they're going up again - do you think they're getting ready for rate drops as we head towards the election?

No they've gone up! I wasn't rushing in this time as last year when the base rate kept increasing I switched to a lower tracker in a panic, then they stopped increasing the base rate, so didn't want to do anything rash this time. A few weeks a go it was 3.89% for 5 years. Then it increased to 4.03% (which it was yesterday) but I've just looked now and it's 4.34%!! Kicking myself now, I should've fixed a few weeks a go. I could go: 5 years for 4.49% 3 years for 4.74% 2 years for 4.89% All of these are fee free. The £999 fee ones are only 0.25% less so it's cheaper to take the fix without a fee. A 5 year fix at that rate doesn't seem worth going for now. It doesn't look like the BoE will lower the base rate until the end of 2024. So I either stick it out on my 5.59% tracker, fix at a higher rate now or wait and see if they drop again but there's every chance they could rise too.

Haven't looked at it in a while, have you seen rates drop any further over the last few weeks/months?