Best 5 year fixed deal ever???

WillowCat

How would you feel if you took the fix, and at the end of the five years you were stuck on the (very high) SVR?

At the moment you've got a great tracker deal, unless you absolutely need the certainty of a fixed rate would it not be better to stay on the tracker for the long term?

MarkyMarkD

But why would you be stuck on SVR in five years? By then, the mortgage market will have sorted itself out and it will be perfectly possible to remortgage or to switch to something more reasonable with Coventry.

The 5 year fix doesn't revert to SVR anyway, but to their loyalty rate which is significantly lower.

handful

silvercar wrote: »

Waiting for my letter! I won't consider a fix unless it offers the offset. TBH it would have to be a good offer to tempt me away from the +0.75% lifetime tracker. A bit of luck, a couple more drops in the base rate, a bit more overpayment and a good trading year next year and I hope to be completely offset within 2-3 years.

Hi silvercar. I phoned CBS today for some info, they told me it is only available as an offset if you are on an offset already, so hope yet for you! Just to answer some of the other queries, it is fully portable and overpayments are only allowed up to 5% pa. Still undecided at the moment, all this talk of likely deflation and a long term recession is making me twitchy.

The bit I can't understand about all this is Sterling. How far will they allow it to drop before that becomes more of an issue than deflation? Or will it always be less important, in which case we could be set for <2-3% for a good couple of years or more. If this is the case 3.99% could end up looking less like a cracking deal

MarkyMarkD

I think that it's hard for deflation to continue for too long. After a year the initial drop in the index will drop out of the annual RPI/CPI figures, and things will likely pick up once again. That is certainly a major reason why we now have such a low level of inflation - there were large increases a year ago which are now dropping out of the indices.

wellingtonsocks

I was offered the 3.99% deal back in late November/ early December last year. I am currently on a +1% lifetime trakker after coming off my baserate trakker in september. I however did not take the deal as it was obvious that rates would then drop further. Now I have enquired again to see if CBS would offer me a better deal but it is still at 3.99% for 5 years, does anyone else think that fixed rate offers will fall below this?

Gorgeous_George

I don't think fixed rates will fall below 3.99%* and I don't think 3.99% will beat a tracker over 5 years. I wouldn't choose a five year deal either.

* If competition returned to the mortgage market, we might see slightly lower rates but I think competition is more than 5 years away.

GG

ashington10

Thing that worries me is that with house prices falling sticking with the SVR may well be a good option for now but when rates rise and you look for a suitable fixed product you might find that your home has gone down in price to such an extent that you cannot get a decent deal and therefore may be forced to stay on the (perhaps increasing SVR).

What do people think?

whathavewedone

I'd bite their hand off.

Imagine how sick you'd feel if interest rates shot up and you couldn't get a decent fixed rate anywhere.

Just because the bank obviously doesn't expect interest rates to go up doesn't mean that it can't happen.

Prav

Essentially it's down to your attitude to risk.

uzubairu

ashington10 wrote: »

Thing that worries me is that with house prices falling sticking with the SVR may well be a good option for now but when rates rise and you look for a suitable fixed product you might find that your home has gone down in price to such an extent that you cannot get a decent deal and therefore may be forced to stay on the (perhaps increasing SVR).

What do people think?

100% in agreement.