Choose a fixed rate at this time?

Fliss_M

I feel I want to be shocked, lol

emmgem

Hi my tracker product with the Abbey finished on the 14th, reverting to the Svr (which is changing to 5.44% 3rd december)
I just called them up and am now moving on to the 2 year fixed £799 + £100 transfer fee at a fixed rate of 4.59% which works out less than I was paying on my tracker. Not sure I have made the right decision and hoping i wont kick myself in a few months time if the svr goes down lower than this!

Charlton_King

emmgem wrote: »

Hi my tracker product with the Abbey finished on the 14th, reverting to the Svr (which is changing to 5.44% 3rd december)
I just called them up and am now moving on to the 2 year fixed £799 + £100 transfer fee at a fixed rate of 4.59% which works out less than I was paying on my tracker. Not sure I have made the right decision and hoping i wont kick myself in a few months time if the svr goes down lower than this!

Prepare to put on thy kicking boots...

ray123

Savemoney - if you think the base rate is going to drop and your ltv is around 40%, you could have a look at hsbc tracker currently available.
http://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/tracker-rate;jsessionid=0000NIJ-oHFDnlSwq1Ksv9mNnbY:11j74lld0
The arrangement fee is £800 which is quite steep, but I do not see mortgate rates and arrangement fees improving much within the next 12 months!

sjh5000

Well it looks like waiting a short while has been worth it. Britannia's fixed rates have come down to 6.09% for a two-year fix and 6.19% for a five-year fix. I'm seriously thinking about going for the five-year deal.

Has anyone had their house valued by Britannia and, if so, did they get a fair deal?

looster

We were in a similar position with you and chose to fix- 90% LTV and house prices dropping. We fixed because irrespective of whether there are better fixed rates available in 6 months time, our house value will have dropped further and they wont be available to us. But we do like to know what we have to pay and don't have much buffer if rates started rising again.

We got 6.19% from Nationwide (no longer available to 90% LTV) and even though when our mortgage ends in late Jan we would be a bit better off on Northern Rock's SVR, we are still going to proceed with Nationwide. 5 years is a long time for rates to stay this low and whilst I would love to ride the SVR rollercoaster if it was going to stay going downhill, I don't want the anxiety associated with rates going up (been there, done that) and Northern Rock's SVR is quite some way above the base rate. We are going to overpay as much as we can now and hope that by the time our 5 year fix is up, house prices will be rising again and we will have a lower mortgage amount outstanding.