Rich Posted February 5 Author Report Share Posted February 5 With Santander I believe it is the same, they don't reduce it like other lenders but it's something I would check first. I'm not rushing into a fixed deal and will be taking my time to decide. I'm not sure if I want to wait until the second half of the year when the election is likely to be called. Who knows what will happen in the run-up to it, maybe lenders will keep dropping fixed deals but it's all a risk. Quote Link to comment Share on other sites More sharing options...
Rich Posted March 8 Author Report Share Posted March 8 Well the budget was a bit crap! Nothing for home owners. I wonder if this will encourage lenders to drop fixed rate deals some more to get the housing market moving again. Another 2 weeks until they review the base rate again. I also had a look at the offers in my Santander account and under ERC it says this will step down over the term. I'm certain that's a new thing, I don't recall seeing it before Quote Link to comment Share on other sites More sharing options...
parthiban Posted March 8 Report Share Posted March 8 Haven't looked at it in a while, have you seen rates drop any further over the last few weeks/months? Quote Link to comment Share on other sites More sharing options...
Rich Posted March 12 Author Report Share Posted March 12 On 08/03/2024 at 15:47, parthiban said: Haven't looked at it in a while, have you seen rates drop any further over the last few weeks/months? 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. Quote Link to comment Share on other sites More sharing options...
parthiban Posted March 13 Report Share Posted March 13 Interesting they're going up again - do you think they're getting ready for rate drops as we head towards the election? Quote Link to comment Share on other sites More sharing options...
Rich Posted March 18 Author Report Share Posted March 18 On 13/03/2024 at 20:44, parthiban said: Interesting they're going up again - do you think they're getting ready for rate drops as we head towards the election? 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%. 1 Quote Link to comment Share on other sites More sharing options...
adam_r Posted March 22 Report Share Posted March 22 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! Quote Link to comment Share on other sites More sharing options...
Rich Posted March 24 Author Report Share Posted March 24 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. On 22/03/2024 at 18:20, adam_r said: 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! 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. Quote Link to comment Share on other sites More sharing options...
adam_r Posted March 24 Report Share Posted March 24 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 Quote Link to comment Share on other sites More sharing options...
eddie Posted March 25 Report Share Posted March 25 On 22/03/2024 at 18:20, adam_r said: 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! 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 Quote Link to comment Share on other sites More sharing options...
eddie Posted March 26 Report Share Posted March 26 https://www.investegate.co.uk/category/directors-dealings Quote Link to comment Share on other sites More sharing options...
Rich Posted March 29 Author Report Share Posted March 29 On 24/03/2024 at 21:49, adam_r said: 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 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. 1 Quote Link to comment Share on other sites More sharing options...
parthiban Posted March 31 Report Share Posted March 31 On 29/03/2024 at 09:51, Rich said: 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. 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......... 🙄 Quote Link to comment Share on other sites More sharing options...
Rich Posted April 2 Author Report Share Posted April 2 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. Quote Link to comment Share on other sites More sharing options...
parthiban Posted April 2 Report Share Posted April 2 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........ Quote Link to comment Share on other sites More sharing options...
Rich Posted April 5 Author Report Share Posted April 5 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! 😳 1 Quote Link to comment Share on other sites More sharing options...
eddie Posted April 10 Report Share Posted April 10 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 🤣 Quote Link to comment Share on other sites More sharing options...
parthiban Posted April 15 Report Share Posted April 15 On 10/04/2024 at 12:58, eddie said: 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 🤣 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). Quote Link to comment Share on other sites More sharing options...
eddie Posted April 17 Report Share Posted April 17 On 15/04/2024 at 10:45, parthiban said: 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). You mean there is a different tax relief regime? Quote Link to comment Share on other sites More sharing options...
parthiban Posted April 18 Report Share Posted April 18 18 hours ago, eddie said: You mean there is a different tax relief regime? Yep - as an example, interest is fully deductible for corporates, not for private landlords. Quote Link to comment Share on other sites More sharing options...
eddie Posted April 18 Report Share Posted April 18 4 hours ago, parthiban said: Yep - as an example, interest is fully deductible for corporates, not for private landlords. unless you set yourself up as a limited company... I can see why all this is putting private landlords off Quote Link to comment Share on other sites More sharing options...
parthiban Posted April 19 Report Share Posted April 19 14 hours ago, eddie said: unless you set yourself up as a limited company... I can see why all this is putting private landlords off And existing owners can't do this without paying stamp duty again........ Quote Link to comment Share on other sites More sharing options...
eddie Posted April 20 Report Share Posted April 20 On 19/04/2024 at 09:31, parthiban said: And existing owners can't do this without paying stamp duty again........ as usual its always the smaller businesses that take the brunt end of stupid legislation... 1 Quote Link to comment Share on other sites More sharing options...
Rich Posted 15 hours ago Author Report Share Posted 15 hours ago 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. Quote Link to comment Share on other sites More sharing options...
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