Getting a mortgage

Cant get a dodgy one now, all the good 'brokers' have gone t1ts up

DIY - wouldn't bother with a fixed rate either - interest rates will not be budging for a few years yet

How much equity do you have in the house %wise

only really need a broker if you have trouble getting a mortgage eg self employed, dodgy credit history etc

if you are employed, good credit history apply directly to the bank / building soc.

Do the number crunching yourself taking into account fees and rates.

Cheers, gents.

toffee87 27 Jun 13 16:51
How much equity do you have in the house %wise

At least 25%. I'm gonna get some estate agents round in the next few weeks to give me a valuation.

If I need a mortgage from November 1, when should I start applying for a deal?

What is this about interest rates not budging for a few years yet? Yields are rising on US Treasuries as we speak and, if you can lend to the US government at a higher rate, then every other interest rate rises as a consequence.

The Bank of England can keep its base rate at 0.5% if it wishes, but that has no relevance in the face of what is happening in the States.

If you can get a fixed rate now, then pay a bit extra and fix it, would be my advice. Peace of mind and all that ... the potential benefits of a variable rate at these low levels is pennies at the most; the potential downsides involve hundreds of pounds extra per month and potential debt slavery.

your fixed rate ends, but you still have a mortgage

so just ask your current lender whether they can do something for you otherwise you'll be switching, if they can do you a deal it will save you a load of time and hassle and you might even get a better deal than anything advertised

http://uk.reuters.com/article/2013/06/26/uk-britain-boe-fpc-idUKBRE95P0FU20130626

The Bank of England warned banks and borrowers on Wednesday they may be vulnerable if there is an abrupt rise in global interest rates which could require lenders to bolster their capital cushions again.

Global bond yields have jumped since U.S. Federal Reserve Chairman Ben Bernanke said last week that the U.S. central bank may start to scale back bond purchases later this year.

"The violence of the adjustment over the past fortnight underlined the extent of the search for yield over the past months and the need for the authorities ... to pin down whether or not there are any vulnerable links in the financial system that could jeopardise stability," BoE Deputy Governor Paul Tucker told reporters.

I just cant see the government raising interest rates prior to the next general election - that would be even more suicide than any other decision they have made
Low interest rates are the only thing keeping the country afloat IMO as so many people have not had pay increases yet are paying so much more for their gas/electricity and fuel

the best thing is to do the maths yourself - if you can fix for 5 years at 0.2% more than not fixing then it is a no brainer to fix it. Personally every 1% increase in rate would cost me £200/month

The good thing is that rates are more competitive than 3 years ago - I was paying 3.29% on an interest only but once that deal came to an end I managed to get 2.39% with the same bank (saving me £180/mth). Its too risky for me to change provider as although my LTV is less than 60%, a lot of providers are not offering interest only anymore, although I've also got 2 BTL interest only mortgages as well

elise 27 Jun 13 20:09
just ask your current lender whether they can do something for you otherwise you'll be switching, if they can do you a deal it will save you a load of time and hassle and you might even get a better deal than anything advertised

Good shout. I've been on their website and they're offering a decent deal. I'll ring them tomorrow and see what they've got to say for themselves.

Toffee87: It's got nothing to do with "the government raising interest rates".

The US government is paying more interest on its debt, so the rest of the world follows suit. It doesn't matter what the UK government or the Bank of England wants or the rate it sets. If a bank can now get 2.5% for lending its money to the US government, it's going to demand a lot more than that from an interest-only debtor in the UK who isn't even repaying the loan itself.

I'm not doubting that screaming and to be honest I don't know that much about it other than a common sense point of view but it seems that Mervyn King agrees with me

The eye-watering mortgage debts of homeowners in their 30s and 40s means that the Bank of England cannot raise interest rates without pushing millions of people into an 'unsustainable' position, Sir Mervyn King has warned.

The outgoing Governor of the central bank last night said that many homeowners faced a debt timebomb because they had failed to use the opportunity of record low interest rates - which have stayed at 0.5 per cent since March 2009 - to reduce their mortgage debt.

His warning was echoed in a Bank of England report this morning that predicted nearly one in ten mortgage borrowers would have to take significant action - such as working longer hours, cutting back on essentials and changing mortgage - if rates were to rise by just one percentage point

The fact that you can still get fixed mortgage rates of under 2% seems to suggest that the banks don't think rates are going up anytime soon as they would be factored in to any long term fixed rates

No harm in asking a broker - especially if there is no fee to be paid.

Look yourself at direct deals and ask a broker would be my advice.

WHAT DO I DO NOW - short sterling is pricing a uk base rate rise as early as the end of this year....the era of ultra low rates is coming to an end...my strong advise to somebody in your position is to look at the yorkshire bs 10 year 3.89% fixed rate deal...75% ltv....and NO product fee....you can apply online....no broker required....In my opinion...with a uncertain inflation/interest rate environment, it's definitely the best option out there for those who like to get a good nights sleep !....at least for the next 10 years