Fixed term ending soon!!

theacereturns

My 2 year fixed term deal is ending at the end of October and Im not sure what I should do.:eek:

Should I sign up to a new 2 year deal? (Fixed deal are preferrable to me)

Should I go to the banks variable rate for a while to check what the interest rates are going to do?

Should I look at other deals? Discounts/Trackers etc etc

Does anyone know what the outlook is for mortgage rates over the next few months??

Any advice much appreciated.............:T

opinions4u

theacereturns wrote: »

My 2 year fixed term deal is ending at the end of October and Im not sure what I should do.:eek:

Should I sign up to a new 2 year deal? (Fixed deal are preferrable to me)

Should I go to the banks variable rate for a while to check what the interest rates are going to do?

Should I look at other deals? Discounts/Trackers etc etc

Does anyone know what the outlook is for mortgage rates over the next few months??

Any advice much appreciated.............:T

1) Why restrict yourself to 2 year options?
2) Start making enquiries now - if you choose to remortgage it will probably be well in to November before it completes - so you will have some time on standard rate whether you like it or not.
3) Yes - look in to all deals
4) I can't even tell you which banks will exist next week, let alone predict interest rates next year!

Get yourself to an independent mortgage broker and see what deals they can get searching the market.

Gorgeous_George

You've answered the question yourself - you like fixed rate deals. I don't.

If the security is more important than anything else, fix. How long do you expect to prefer fixed rates? Go for a deal that is about that length of time but factor in the arrangement fees.

Remember how quickly that fixed term passes.

Maybe if you post some details, I could crunch the numbers for you.

GG

lisyloo

I am speaking very geneally but across the board mortgage fees have gone up.
This makes 2 years deals less attractive and longer deals much more attractive.
If your circumstances are quite tight then a fixed rate is a good idea, however short term predictions are for rates to come down in 2009, so a tracker may be cheaper but of course it's a risk which some people cannot take.

theacereturns

I am open minded about different types of deals, I am just used to fixed. I quite like to know how much im paying each month.

However, i could waive this if the deal was correct for the current climate.

I dont want to tie myself in to anything too long as i am reading in a few places that rates could be drop as low as 4% in about 12 months time - a fixed rate would then have me paying over the odds!

My budget isnt that tight so i could afford to change my ways somewhat.
My LTV is approx 45% and am looking for loan for 18 years

What is the short term predictions anyone? I could maybe stay on variable rate for a few months to see what is happening with the rates? Or would that be a bad decision

Gorgeous_George

I think that rates will fall soon. Therefore, I would choose a tracker but keep my eyes open for a good fixed rate deal.

I'm on BofE BR + 0.74% but might consider a fix at 4.5% if/when one becomes available.

GG

ray123

If you want fixed rate, perhaps try Yorkshire BS...

http://ybs.co.uk/mortgages/current_products/index.jsp?mortgage_type=ybsMortgages1#ybsMortgages1

Fixed rates are available for 2, 3, 5 and 10 year periods.
With your LTV so low, you should receive a decent deal.

However, as others have pointed, it is not the best time to re-mortage due to the economic downturn. I like GG's idea of a tracker until the rates drop (and they will). If you choose a fixed rate, you will be tied in until that fixed rate period expires, due an early repayment charge that will be levied for the duration of the fixed rate period.

kisk

I have a meeting with Yorkshire on Monday to hopefully get my fixed rate agreed for 3 years. It used to be so easy but I’ve got to go to the branch with 3 payslips for me and my other half, proof of building insurance, passports and proof of life cover. Not a bad thing. I like the fact I will be paying a fixed amount that I know I can afford without any sacrifices.

I’m not so sure the rates will drop soon but who knows? I think the base rate may well reduce but will this see the banks reducing their lending rates. Ill stick with my fixed rate as I don’t think the pain is quite over yet.

I also looked at Britannia and First Direct who were doing some competitive rates.

kisk

MortgagePerson

The best thing for you to do is seek advice from an independent mortgage broker who will find you the best rate/product that matches or suits your own requirements

As for interest rates !! I think the Bank Of England Base Rate will decrease but I cannot see the average mortgage rate decreasing

The reason for this is is the interest rates that banks charge(LIBOR The London Interbank Offered Rate ) each other is much higher than the Bank of England base rate Until these rates come down the Standard Variable rates will not come down and perhaps increase as has been happening over the last few months

foreversummer

Hi

With a low LTV and and a budget that isn't too tight, go for a Tracker. Rates are now predicted to to be 3.5% or lower. Go for a fee-free tracker with no penalty for early repayment, then you can fix if you feel the need at some point in the future.

All the best.

Foreversummer