Lenders and brokers say fix your mortgage

bubblesmoney

if we had fixed at 6.49% (rbs staff mortgage for my wife) i could not have overpaid and would be paying a stupid amount of money more than what i pay for my present tracker at hsbc. also there were penalties for early redemptions. so we didnt bother with the staff mortgage at rbs but went with the hsbc tracker 0.99% above base rate now paying 2.49%. rbs didnt do trackers for staff and their regular one gave a crap rate. boy are we glad we went with the hsbc tracker with interest rates at a record low, our repayment mortgage is presently £202 a month!!! plus we get to overpay without penalties now. with interest rates low we can repay the capital faster than if our mortgage was fixed at a higher rate even if that fixed mortgage had no penalties. if rates go very high then we can always fix then at a slightly higher rate without any penalties. but hope to get rid of the mortgage ASAP as overpaying as much as possible and already cleared 11k the last 4 months, hopefully will clear a bit more this month. might have cleared a lot more if wifey hadnt insisted on shopping for the house furniture. but then it was the shopping or my head so i didnt have a choice with that.:p

mbga9pgf

currently the best deals out there that I can find.

http://www.britannia.co.uk/home/mortgage/fixed/10_year/index.html

I will hopefully have the equity for the 40% one in 12 months (thanks to a brainwave I had involving the short-term use of Credit cards and 0% introductory rates!)

Really2

mbga9pgf wrote: »

currently the best deals out there that I can find.

http://www.britannia.co.uk/home/mortgage/fixed/10_year/index.html

I will hopefully have the equity for the 40% one in 12 months (thanks to a brainwave I had involving the short-term use of Credit cards and 0% introductory rates!)

Not knocking you and I dont have a CC
But are the 0% rates on balance transfers and new purchases only?

mewbie_2

Lenders and brokers say fix your mortgage

What if it ain't broke?

andrewmp

chucky wrote: »

like fixing at 6% six months ago and not taking the tracker mortgage that was offered that would be only 2.4% now

Better than being in negative equity and stuck on SVR if/when rates go up. Short term gain and all that.

chucky

andrewmp wrote: »

Better than being in negative equity and stuck on SVR if/when rates go up. Short term gain and all that.

exactly, no-one knows the answer. it depends on what you want and criteria that you need.

andrewmp

chucky wrote: »

exactly, no-one knows the answer.

Yeah, nobody knows. If you can afford to pay your mortgage at rates in excess of 10% whilst being in negative equity then the tracker will be great as it'll allow overpayment until then. If you can't, then the security of knowing what your repayments will be for the next 25 years will outweigh the short term savings.

Really2

andrewmp wrote: »

Yeah, nobody knows. If you can afford to pay your mortgage at rates in excess of 10% whilst being in negative equity then the tracker will be great as it'll allow overpayment until then. If you can't, then the security of knowing what your repayments will be for the next 25 years will outweigh the short term savings.

Is this MSE a 25 year mortgage would work out more expensive than SVR over a term of a mortgage?

chucky

andrewmp wrote: »

Yeah, nobody knows. If you can afford to pay your mortgage at rates in excess of 10% whilst being in negative equity then the tracker will be great as it'll allow overpayment until then. If you can't, then the security of knowing what your repayments will be for the next 25 years will outweigh the short term savings.

exactly the inverse can be said of what you've just said - what's your point?

chucky

andrewmp wrote: »

Better than being in negative equity and stuck on SVR if/when rates go up. Short term gain and all that.

or even better, having a 20% LTV and paying a low Fixed Rate - i stil don't get your point?