Fixed rate disaster

Gorgeous_George

This poll from April 2008 suggests most posters on MSE expected a cut.

Another thread seems to recommend a tracker.

GG

ixwood

Gorgeous_George wrote: »

Y..

Rates will rise again one day but I think they will remain low for the next 5 years at least.

..

I disagree with 5 years. Seems very optimistic. I expect them to shoot up within a year or 2 when we have the official sterling crisis.

Rates are now 18% in Iceland:-

http://www.sedlabanki.is/?PageID=224

ixwood

Labour governments always end in tears. You can only overspend for so long.

nathanhill69

Gorgeous_George wrote: »

This poll from April 2008 suggests most posters on MSE expected a cut.

Another thread seems to recommend a tracker.

GG

One poll, one thread - not exactly "proof" when compared to the countless threads and posts on this forum (and no, I'm not going to trawl back through postings from May 2008 to back up my point). I'm just commenting on what I distinctly remember around that time when reading this forum.

_Andy_

withabix wrote: »

You forgot the bit which steers the 'Independant Financial Adviser' in the direction of the deal which pays him the largest commission....

On a prime mortgage, with a couple of exceptions, there would be hardly any difference in the proc fees. Additionally, if the broker were to recommend one with a higher proc fee over another, they would have to provide strong reasons why this was the case.

sundog

ixwood wrote: »

Labour governments always end in tears. You can only overspend for so long.

What kind of advice is that for the OP?

As some have said it may not look the best decision but nobody predicted a massive cut in the cost of borrowing that we have witnessed and it is far from a disaster.

The decision should be based on affordability.

ixwood

I think you misunderstood me. The disaster hasn't happened yet. When it (Sterling Crisis) does, the OP will be safe and those on trackers will be crucified.

dunstonh

You forgot the bit which steers the 'Independant Financial Adviser' in the direction of the deal which pays him the largest commission....

Mortgages pay diddly squat. Thats why increasing numbers of IFAs no longer do them. However, even if they do them, you are talking earnings in the region of £150-300. What would the point be on a commission bias of that piddly amount?

People go into fixed rates to get payment certainty. In 18 months time when interest rates are rising again (my opinon) people on fixed rates could come good when trackers and SVRs find themselves going up above the fix rates available.

If you cost up the options and you can get a cheaper fix and the cost over the period is cheaper than your current deal then go for it. However, you must take into account the costs of switching over the term. If you add the fees to the mortgage then you have to consider the cost over the whole period.

sundog

ixwood wrote: »

I think you misunderstood me. The disaster hasn't happened yet. When it (Sterling Crisis) does, the OP will be safe and those on trackers will be crucified.

I understood you perfectly. Your political arguments offer nothing.

ixwood

Thanks.

The OP is asking about "The long term expectations are for interest rates." and I gave my opinion. Something wrong with that?

Considering your only input has been to get narky with a couple of people, maybe you could be more helpful!