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  • FIRST POST
    • tazzababe100
    • By tazzababe100 11th Jun 17, 4:43 PM
    • 23Posts
    • 2Thanks
    tazzababe100
    After the initial fixed period
    • #1
    • 11th Jun 17, 4:43 PM
    After the initial fixed period 11th Jun 17 at 4:43 PM
    I have been looking around for mortgages and just wondered how many of you really consider the payments after the fixed period is over? There are some good rates out here and we could afford a mortgage but I stop myself applying because worry that after the initial period the repayments would be more than we could afford.
    I know that once the fixed period is up I could change the deal but I am a worrier by nature and panic thinking rates will go too high and I won't be able to keep up payment. So, am I right in thinking like this or should I stop the panic?
    Thanks
Page 1
    • ANDR£W
    • By ANDR£W 11th Jun 17, 5:24 PM
    • 45 Posts
    • 41 Thanks
    ANDR£W
    • #2
    • 11th Jun 17, 5:24 PM
    • #2
    • 11th Jun 17, 5:24 PM
    Maybe a good idea to actually mortgage at what you can afford & not over reach.Nobody can predict future markets,interest rates etc so airing on the side of caution is always wise.Most of my friends/family with mortgages like to have an emergency fund in place that will cover the mortgage for 6/12 months incase of unemployment in these uncertain times! I'm guessing you're a Libran?
    ANDR£W
    • getmore4less
    • By getmore4less 11th Jun 17, 5:48 PM
    • 30,849 Posts
    • 18,451 Thanks
    getmore4less
    • #3
    • 11th Jun 17, 5:48 PM
    • #3
    • 11th Jun 17, 5:48 PM
    many ignore(give low priority) the follow on rate assuming they can get a new deal, retention or remortgage.

    You don't have to fix there are good tracker rates out there.
    • Edi81
    • By Edi81 11th Jun 17, 5:53 PM
    • 330 Posts
    • 205 Thanks
    Edi81
    • #4
    • 11th Jun 17, 5:53 PM
    • #4
    • 11th Jun 17, 5:53 PM
    Plus lenders need to assess affordability at higher rates.

    Fixed rates are based on market swap rates which give an indication of where the market thinks short term rates will be in x years. At the moment rates are not expected to go up sharply.
    • ACG
    • By ACG 11th Jun 17, 6:05 PM
    • 15,912 Posts
    • 8,152 Thanks
    ACG
    • #5
    • 11th Jun 17, 6:05 PM
    • #5
    • 11th Jun 17, 6:05 PM
    If your issue is the reversionary rate, why not choose a 5 or 10 year fixed rate?
    It will cost you more than a 2 year fixed rate, but you know what your payment will be for the longer term. There are a few considerations with longer term fixes, ie, do you plan on moving. But if you are happy with the negatives it may be the better option for you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • tazzababe100
    • By tazzababe100 15th Jun 17, 1:25 PM
    • 23 Posts
    • 2 Thanks
    tazzababe100
    • #6
    • 15th Jun 17, 1:25 PM
    • #6
    • 15th Jun 17, 1:25 PM
    Thanks so much guys. Need to look in to tracker mortgages and consider a five year fixed. Think my head will explode with all the info haha
    Yes I am Libra!
    • clairebeth
    • By clairebeth 16th Jun 17, 12:52 PM
    • 141 Posts
    • 53 Thanks
    clairebeth
    • #7
    • 16th Jun 17, 12:52 PM
    • #7
    • 16th Jun 17, 12:52 PM
    I think you're completely normal and wise you think this way. I'm currently in the process of fixing for ten years at 2.64% as I like the current rates and want to stick with it!
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