Mortgage Rates

[K.S.H]

Whats going to happen?
I can only see them going up but can't decide how much

Thing is I usually fix my rate for a few year, probably lost out last time with the way the interest rates have dropped, it's due again soon and I have been offered 4.2% for 3 year, the current flexible rate is at the min 2.5%
I "don't think" it will go over 4.2% in three years - what's your thoughts?
I'm very tempted to leave it at the flexible rate, I won't loose too much if it does go above it, only got 5 year left to pay

[jaysay]

Originally Posted by K.S.H

Whats going to happen?
I can only see them going up but can't decide how much

Thing is I usually fix my rate for a few year, probably lost out last time with the way the interest rates have dropped, it's due again soon and I have been offered 4.2% for 3 year, the current flexible rate is at the min 2.5%
I "don't think" it will go over 4.2% in three years - what's your thoughts?
I'm very tempted to leave it at the flexible rate, I won't loose too much if it does go above it, only got 5 year left to pay

That's a very hard one to weigh up K.S.H. the markets are so volatile no one really know when things will settle down, could actually take quite a few years

[K.S.H]

Originally Posted by jaysay

That's a very hard one to weigh up K.S.H. the markets are so volatile no one really know when things will settle down, could actually take quite a few years

Yeah, thats why i'm tempted to go for the variable rate, won't loose a lot anyway, difference between the two rates above is only about £25 a month

[jaysay]

Originally Posted by K.S.H

Yeah, thats why i'm tempted to go for the variable rate, won't loose a lot anyway, difference between the two rates above is only about £25 a month

Or the price of a quiet night out

[entwisi]

Posted via Mobile Device
You need to consider all aspects, is there a setup cost on the fixd rate? Do you need to pay legal asects if you go fixed as it would be likely a re-mortgage whereas staying on SVR may not incur any.

With respect to the rates. My view is they will stay low anther 6 months or so then the increase could be as quick as they came down. For this reason Julie and i just locked in at 4.84 for 7 years. Similarly we won't have too long left after that and the fixed cost is somthing i'm happy to have for now.

[K.S.H]

Thanks Ian,
No costs involved, I am on a fixed rate now but it ends in a few week, was a 5 year one which we took out, its just a case of do we want to take a new fixed rate out or go with the variable rate.
"Think" I've decided to risk it and go with the variable rate for now and keep an eye on the rates etc

[archiveuk]

If this help I reproduce an abridged email to a client of mine!

Hi ****

Re your Enquiry,

The current market has left us with relatively low Standard variable rates (SVR), indeed with Nationwide is curretly 3.99%.

Additionally, longer term fixes are generally higher (average 5% to 6 % depending on the term and lender), they also tend to carry high setting up fees, £500 -£1500 not uncommon.

This leaves us all with a dilemma, do we go for the security of a fix or hang on till rates start to rise? Two things are sure, Rates will rise ! and the very first time they do they'll be a stampede for fixed rates (which will suddenly become even more expensive, both in rates and fees).

That said there are are few "gems" to be had in terms of mortgage deals at present, your decision is do you go for security now at the higher cost?

By my reckoning you will be paying around £*** month at the moment? i reckon that by going for a fix will increase your payments by around £50 -£60 per month but you have protected yourself against future rises.

(products removed by poster for commercial reasons).

[planetsusie]

I just bought another fixed rate at 2.99% for 2 years, thats because I Know I can afford to pay that so no matter if I 'lose' against the going rate, I know its paid up.