And yes I know he is not psychic I was just asking advice I wasn’t sure whether to come out early I’ve never done this before it makes me a little nervous as on my own and don’t know who to ask
I’ve just got a mortgage last week of 4.88% as a first time buyer, 15% down, 5 year fixed on a 250k property. If anyone needed this info🙂. (With halifax)
Does anyone know if the Bank of England was going to increase their base rate this year anyway, or did they only have to do it as a result of Truss' policies in late 2022?
Not sure how telling people to move into smaller cheaper houses after they paid off a load of stamp duty on their larger one, to then go and pay more STLD, solicitor/agent fees is somehow worthwhile advice. Even if they are stuck in such a predicament they cannot afford price increase of interest surely they would pay less then all the money lost in the home move process? lol
Hi Matt, many thanks for the informative video. As a first time buyer in London, would you say that its more astute to wait for the house prices to continue correcting during the course of this year, as well as interest rates (albeit small)? I'm not so much concerned about the rates as I believe the era of cheap money is over, but I'm concerned about how expensive house prices still are. Any feedback appreciated. Cheers.
Just today I have been quoted a best option of 5.99% buy to let mortgage whichL will.mean I have to pay £148 every month as that's the amount over the rental income. 2 year fixed that's for.
My fixed rate of 2.34% will end in sept this year. I could get one locked in without having to pay early repayment fee from april but not sure if i should wait or bite the bullet. The headache is real 😬
Great explanation. When i was broking in 1990, people where queuing for 13.4% 2 yr fix with nat west, three years later Bristol and West offering 9.99% 5 year fixed. People grumbling now about paying 6%, it will come down, just have to wait.
Grumbling? My mortgage is going to nearly double, along with my energy bills. Add that on top of the cost of living/static wages and you’ve got yourself a rather large situation
Just watched your excellent informative vid. We are currently remortgaging and managed to get a fixed rate at 4.04% with Halifax, up from our previous 2.25% for two years. I know it's not brilliant but as we are in our 50's with only one wage earner, we locked it in for 10 years of a 13 yr remaining mortgage. We just felt at our time of life we didn't want to be chasing best deals every 2-5 years.
Before I watch the video. Go tracker with the option to fix if possible. Longer term as the fees outweigh the difference. Will edit after the video. Edit: my opinion hasn’t changed. In fact surely if you’re on SVR at over 6% it makes more sense to switch to a discount tracker at high 3% to low 4% rather than sitting on an offer incurring those SVR costs like your broker suggested. If it’s got the option to fix later even better when you’re happy. It’s a way of taking on the risk which is built into a fix yourself instead of the bank thus reducing the rate. The only reason I can think that you wouldn’t do this is if you think rates are going to rise higher than the current fix long term and you want the certainty. I don’t hold that opinion.
First time buyer with 10% deposit. Just fixed for 5 years at 4.9%. Which compared to just a few months ago is loads better. The short term deals were around the 5.3% mark so over the medium term banks are expecting a drop. I think as someone in a position to buy the higher rates actually made it easier to get a deal over the line so I feel like I can’t grumble too much.
Same here, we were looking at 6%+ not too long ago. Down to 4.7% with 15% deposit. Hoping that in future they’ll go back to 2-3% and we’ll be onto a bargain
I absolutely don't get why people would do a 5 years fixed and a down payment. I got a 30 year fixed with no down payment at 3%. I keep that down payment money in the bank to make sure that i can pay my mortgage for a few years. The bank can't touch me as long as i make the payments. So having your mortgage under water is no risk. Everyone here in the Netherlands that i know has 30 years fixed mortgages. People would think your mad for taking a mortgage under 20 years fixed.
@Bertuzz84 because here in the UK you cannot get a mortgage with 0 equity and no down-payment. You usually HAVE to pay a 10-15% down-payment... which is why its so hard for first time buyers looking to buy a £250,000 house for example. Also, until about two years ago, it was almost impossible to find a fixed mortgage that was longer than 8 years. The average fixed mortgage is 5-10 years. Our mortgage lengths might be 25-30 years, but only the first few years is fixed.
@@richardwillson101 Oh i see, in that case its normal to have a 5 years fixed rate. It would seem like a huge hassle to me, and i would regularly check interest rates. If they would have required a 10-15% down-payment than i wouldn't have been able to buy my house at the time. And by the time that i had the cash i would have been priced out of the market lol. I just looked up the average house price in the UK. Your average house is only 337K Euros, compared to our 423K Euros. And your groceries cost like half. You guys have such a LCOL country.
Hard right now (I've had to put it on hold this year to assess how I'll fund my next investment project). If you're new then I think it's a matter of finding a nice property to renovate and then holding onto it for the duration of a fixed term, but understanding prices could fall, a flip is hard because it's trickier to sell at the moment for the price you'd want which would hinder profit margins. So it's a matter of finding lower risk strategies to weather the storm and reduce your risk exposure.
My deal ends Feb 2024 @ 1.1% I don’t mind since it’s 260K and the rent gain is 2.2K. If it goes up, I will pay most of it off, if it goes down, I get a new deal.
Hi, Matt thanks for your video, would you recommend a share ownership with 55% now and a mortgage fixed rate of 5.54%? Do you think is a good idea, I'm thinking in buy a 2 bedrooms flat.
If you can avoid Shared Ownership - then do. If it's unavoidable and necessary then fine. Wouldn't be able to comment on the fixed rate and whether it's any good for you. My TLDR is if you can afford it, happy with it and see yourself there for a few years then yes, make it a home and enjoy it. If you're stretching yourself, putting any risk on finances then no.
low lending has done one thing... driven up house values. once the fairytale ends we should see 400k houses drop to 250-300k where they should be... the houses are way way overpriced because of all the cheap lending.
Thanks for having me on matt, great content and fantastic over view, if any one needs support or review happy to help and support you all please feel free to email me
Why do people take out such short term fixed rate mortgages? I myself and everyone that i know has 30 years fixed mortgages. Mine is 3%, doesnt seem worth it to have taken out a variable to get a lower rate during the last few years. The money that i would have saved is absolutely not worth the stress of that rate going to 10%. The current rate is a wopping 4.5-5%. That would suck ass to see my mortgage payment go up.
Was lucky to get a 5 year fixed term in December from 2019 at 2.85%. So its time to think about but might go for another 5 year fixed rate and this expires in December from 2024
The House Price index figure of 974% might appear high (is this figure adjusted for inflation ?), but if you compare it to more profitable investments such as stocks, the housing index rate is nearly 2.7 times lower than s/p 500 returns over the last 40 yrs which increased by 8,433.22%, adjusting for inflation 2,717.36%.
Current fix rates are higher then the variable rate, given the banks are competing for business, wouldn’t you stick with variable as long as it’s lower then a fix rate? The Bank of England will increase the base rate but also expect on projected reduction of base rate late this year or early 2024, with this inflation is also expected to half as per rishi promise, so would you agree that the fix rates will also fall?
You've misunderstood a little bit here - You can get a fix today and lock in that rate but sit on an offer for around 6 months before drawing it down and in 6 months, if the rates go down, you can scrap the one you lock in now and get a cheaper fix (win), or if rates did go up for whatever reason, you've locked in a fix from now (win). Make sense?
@@MattBrighton I apologise for calling him clueless, it was more of a poor choice of phrase, I understood the sentiment. Going from 1.5% to choices all over 5% won't feel like a win win even if it is the correct way forward.
Hi Matt. My girlfriend and I are looking to purchase a 1/2 bed flat/house in London over the next 6 months (400k value ish). We obviously don’t want the house to depreciate massively over the next 5 years. So, in your opinion, is it silly to buy now? Unless we can get a good deal by knocking a lot of the asking price? I think we’d be happy with a 4% interest rate over next couple years. We are worried we might be falling into a trap and the house might not be a good investment! Do you think London prices are likely to decrease quite a bit over next 6 months? Cheers
I would think wait for 4 months as mortgage rates have been coming down. Obviously also depends on how much early payment charge you have to pay.. If its 1 percent, and if you pick 5 year product, that means you adds 0.2 percent to the rates now. So it makes sense only if you think mortgage rates would go up more than 0.2 percent in 4 months time
Wasn't the entire theme of the video that there is no yes or no solution? Perhaps you should watch it again. With subtitles. And a native English speaker to translate for you?
