Lenders and brokers say fix your mortgage

mbga9pgf

Really2 wrote: »

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

Yeah. Because I reckon we can only stick another 12 months saving, the plan is to put all of our day-to day expenditure on the plastic for the next few months. In July, we plan to card tart it and get a 12 month 0% rate... continue to pay our way with the plastic, whilst in the mean time save all the cash we would have spent on outgoings.

reason? In 12 months, we will just be under the 40% min deposit. 39% compared to 40% works out at 10K in interest over 12 years, so even if we spend 1K on interest for the plastic(which we wont, nowhere near) its well worth it. We should be able to pay the card balance off in a few months once we have bought, so we hopefully get the 40% deposit a little earlier and as a minimum, we get a cheaper mortgage. CC debt only affects your total amount lendable and does not factor into deposit calcs (they dont make you pay your deposit off first in other words).

Thats the plan anyway.

Really2

mbga9pgf wrote: »

Yeah. Because I reckon we can only stick another 12 months saving, the plan is to put all of our day-to day expenditure on the plastic for the next few months. In July, we plan to card tart it and get a 12 month 0% rate... continue to pay our way with the plastic, whilst in the mean time save all the cash we would have spent on outgoings.

reason? In 12 months, we will just be under the 40% min deposit. 39% compared to 40% works out at 10K in interest over 12 years, so even if we spend 1K on interest for the plastic(which we wont, nowhere near) its well worth it. We should be able to pay the card balance off in a few months once we have bought, so we hopefully get the 40% deposit a little earlier and as a minimum, we get a cheaper mortgage. CC debt only affects your total amount lendable and does not factor into deposit calcs (they dont make you pay your deposit off first in other words).

Thats the plan anyway.

Well its woth a try. Going off personal experience it could affect your loan on application (after AIP) as they take all outgoings and debt and deposit in to account then. But as I said I have no other debt so I am not sure by how much but as far I have heard any debt expenses is knocked directly off your affordability.
EG no debt = £1000PM Maximum mortgage
£300PM debt = £700PM maximum mortgage
(very simple example)

mbga9pgf

It is effectively MEW in reverse. Minimum monthly payments will not be a problem. We are lending at effectively 3X single salary (or at least, will be).

Gorgeous_George

I have a lifetime tracker at +0.74% making it 2.24% at the moment.

I think the base rate will fall further over the next few months - possibly to 0%.

I don't think base rates will rise above 2% for 5 years or above 5% for ten years (my opinion - always subject to change).

So come on then Mr Building Society/Bank, tempt me to switch mortgage products.

Snooze

It's quite simple :

If lenders and brokers are saying we should all fix our mortgages then it only means one thing - base rate is gonna be dropping further. Do you really think they'd be telling you to fix your mortgages if the base rate was gonna be going up any time soon? :rolleyes:

Basically they're saying "we're desperate for cash, please sign a fixed rate deal with us so that we can make some cash from you when the base rate hits zero in the next few months".

Rob

ShelleyC_2

carolt wrote: »

...HSBC do not expect fixed rates to fall further. Andy Mielczarek at HSBC said: “Given that banks also have to be fair to their saver customers, I think it’s unlikely that new mortgage rates will fall further.”

Are they taking the p!ss??

They pay no interest on current account, the online saver pays a pitiful 1.75% including bonus(!) and the ISA has bottomed out. The only one thats good is regular saver but can only put £250 a month :mad:

andrewmp

Really2 wrote: »

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

You have a crystal ball?

Kez100

I still do not understand why they have not offered special fixes to trackers. It wouldn't take too much incentive for a lot to be prepared in this uncertain environment to jump on a fix. Perhaps they struggle due to their own inability to lend?

ad9898_3

beecher wrote: »

I don't think 5 year deals are very competitive at the moment so I'm sitting on the SVR in hope that better deals come up. Don't trust the banks to be saying what's best for the customer rather than what's best for them.

This like the old chestnut of trying to guess the bottom of the housing market, in my opinion lending is going to get tighter, 2007 lending will never return for a generation if not longer.

I have no idea what the best 10 year fix is at the moment but if it's 5% or under, I'd snap it up. Rates will not stay this low for long, so as the old saying goes.... don't miss the boat:D .

Really2

andrewmp wrote: »

You have a crystal ball?

Yes but the other one is normal.:D

Just going of historical data your average rate is arounf 5-5.5% over 25 years.
A 25 year fix as got to be nearer 7% or over?