Fixed Rate Predictions

bfgun

Cat695 wrote: »

NO by simply looking at history you will see that everytime rates drop like they have within a year or two risen.....alot higher

Maybe, but we are in exceptional times which have not been experienced, if ever, in many many years.

dimbo61

To Mclaren32 and Damok666
Please be carefull to not overextend yourself if you only have a 105 DEPOSIT and are first time buyers.
Make sure to only comit to a mortgage if in a very secure relationship.
I have and like 5 year fixed rate deals as it gives you security in a very uncertin market and you know what your mortgage payments are for at least 5 years ( for better or worse )
It gives you time to pay off some of the mortgage and increase the equity you have in your property.
Most of the people in trouble with there finances are well educated 30+ and in there first home! Having only put down 10% deposits and now in negative equity. 2 year deals do not give you any time to pay off some of the debt and the recent drop in the housing market is bad news for most people on the property ( ladder or is it snake ! )
Think long term a mortgage is usually 25/30 years so why take a 2 or even 3 year deal.

dimbo61

Sorry should say 10% deposit !

uzubairu

dimbo61 wrote: »

To Mclaren32 and Damok666
Please be carefull to not overextend yourself if you only have a 105 DEPOSIT and are first time buyers.
Make sure to only comit to a mortgage if in a very secure relationship.
I have and like 5 year fixed rate deals as it gives you security in a very uncertin market and you know what your mortgage payments are for at least 5 years ( for better or worse )
It gives you time to pay off some of the mortgage and increase the equity you have in your property.
Most of the people in trouble with there finances are well educated 30+ and in there first home! Having only put down 10% deposits and now in negative equity. 2 year deals do not give you any time to pay off some of the debt and the recent drop in the housing market is bad news for most people on the property ( ladder or is it snake ! )
Think long term a mortgage is usually 25/30 years so why take a 2 or even 3 year deal.

Good advice.

We took the same view when we took out our 10 year fixed rate of 4.79% in 2006.

Knowing that the mortgage payments are manageable and constant has meant that extra household income over the past 2.5 years (pay rises, moneysaving etc) has gone directly on overpaying the mortgage (approx £11K - see signature).

Best thing we ever did, even though friends and family tried to warn us against it at the time, suggesting 2/3 year deals instead.

Colin_London

We got a 4.49% 2-year fixed rate from Abbey on Friday, although we do have a 40% deposit.

I read today that the Building Societies are expecting house values to drop by another 20% by the end of 2009, so you can perhaps understand why they don't want to lend to anyone with a high LTV requirement at the moment.

Damok666

dimbo61 wrote: »

To Mclaren32 and Damok666
Please be carefull to not overextend yourself if you only have a 105 DEPOSIT and are first time buyers.
Make sure to only comit to a mortgage if in a very secure relationship.
I have and like 5 year fixed rate deals as it gives you security in a very uncertin market and you know what your mortgage payments are for at least 5 years ( for better or worse )
It gives you time to pay off some of the mortgage and increase the equity you have in your property.
Most of the people in trouble with there finances are well educated 30+ and in there first home! Having only put down 10% deposits and now in negative equity. 2 year deals do not give you any time to pay off some of the debt and the recent drop in the housing market is bad news for most people on the property ( ladder or is it snake ! )
Think long term a mortgage is usually 25/30 years so why take a 2 or even 3 year deal.

Thanks Dimbo, personally we have done a lot of travelling etc but now we have a small baby and we have really come back home to settle down (there really is no place like home). It might seem a bit idealistic but we dont want to take much notice of how the value of our house will rise and fall because like you say we are in it for the long term.
Thanks again for the advice.