Wisdom of 5YR Fixed at 4.99%!?

pennypincher1010

Hi There

I am about to remortgage - currently on 4.99%. It would be very nice to have a drop in mortgage payments, but I am very tempted to go for the Abbey 4.99% fixed over 5 years deal (Product K342R.)

Abbey Mortages

My reasons are:

a) 4.99% is a historically low rate
b) there are apparently no booking fees
c) fixing it over 5 years would cut out fees associated with a shorter term

I'm finding this decision hellishly difficult - I wish I had a crystal ball and could look into the future with regards to the economy! My gut feeling is if all the doom mongers predictions about the economy are correct, then lending rates will be low for a while to come - I might regret this fixed rate!? Any opinions would be appreciated.

Does anyone know of a better fixed 5yr deal than the one above!?

Thanks in advance for any advice...

:beer:

poppy10_2

Long term mortgage rates are around 7-8%. This looks like a good deal to me.

incher

I don't know of any better offers (not looking tbh) but if you know you don't want to move or borrow more, and there's no fee, then it seems quite tempting.

I remember feeling quite annoyed at our last fixed rate of 5.4% because everyone was getting less than 5% at the time! My husband was self-employed so our choices were limited.

Now people are thinking 4.99% isn't a great rate, but it wasn't so long ago that I was envious of those who could get that!

Ian_Griffiths_Halifax

There are better 5 year Fixed Rates out there, but it depends on your Loan to Value Ratio. This is a good rate though if the others aren't available to you.

woozywendy

We are looking at the deals at the moment and Natwest have a 5 year fix for new customers remortgaging at a rate of 4.89% with a dep of 25% and a product fee of £299.

froggy27_2

i'm in the same position...and I'm about to agree to 5yr fixed at 4.69% - existing customer, no fee... In fact I am hesitating between this and a 10yr fixed at 4.89%...but i think i will go for 5..
A good rate...and at least i won't have to go thru this worry of finding a good mortgage for a while.........

Ian_Griffiths_Halifax

alzar wrote: »

Ian,
For talking sake..
What are the rates you noticed that are better, If there is a good LTV rate?
Cheers..

I don't have the figures in front of me, I can't remember the exact figures but I think 4.69% with Principality B/S and a few lenders at 4.89%.

Loan to Value Ratios may need to be below 50% and some lenders 60%. Sorry I can't be more specific just now. I don't have my sourcing system with me.

froggy27_2

Ian_Griffiths_Halifax wrote: »

I don't have the figures in front of me, I can't remember the exact figures but I think 4.69% with Principality B/S and a few lenders at 4.89%.

Loan to Value Ratios may need to be below 50% and some lenders 60%. Sorry I can't be more specific just now. I don't have my sourcing system with me.

Ian, I see you you are a Mortgage adviser so can i ask you what is your opinion on 5 or 10yr fixed at the moment? thanx a lot.

Barbie57_2

Hi, I'm a newbe on here so please forgive any mistakes!! I am coming to the end of a variable rate term on my mortgage and wonder whether I should go fixed rate for a couple of years or stick with the tracker mortgage I have now???

Ian_Griffiths_Halifax

Alliance & Leicester have a 4.44% Fixed to 30/04/2014 at 60% LTV.

I am suggesting to most clients that they consider a 5 year Fixed Rate to ride the roller coaster ride of Interest Rates that I'm expecting over the next 5 years. We can all better afford it when the rates are dropping on a variable rate, but most get used to the lower payments and then it's harder to readjust when rate rise again.

A 5 year Fixed Rate requires only one payment of arrangement costs over 5 years, whereas 3 year deals would incur costs twice, with no certainty as to what the rates will be in 3 years time, and 2 year deals would incur costs 3 times!

A 5 year deal would allow you to put the mortgage to bed and not worry about rates for 5 years. A 10 year Fixed Rate is too long for the majority of the public IMO, unless it is likely to be the last mortgage you might need, as there are so many things that can happen in your life and changes that might occur, that you might end up having to pay penalties to leave this mortgage early. If you can live with that risk, then it IS something to consider.

draker

Hi all,

We have just applied for a 10 year fixed rate mortgage (75% LTV) value at 5.49% with Halifax. Our current mortgage dosen't run out until August, but we were keen to lock into a fixed rate now, before our loan to value dropped any further.

During the past few days whilst we have been deciding on the best product that matched our needs, both Cheltenham & Gloucester and the Halifax have re-priced their 5 year and 10 year fixed rates upwards. This is based upon the recent upward jump in swap rates and provides an indication that beyond 2 years, mortgage lenders consider that rates will rise again.

We took the decision to jump onto a 10 year fixed rate to buy us piece of mind in these uncertain times and to avoid paying excessive arrangements fees every few years. Based upon the advice provided by our broker and subject to us meeting the loan criteria avilable at that time, we have alos selected a portable produt, whcih shoudl allow us some flexibility should are circumstances change in the future.

Hopefully we have made a wise decision.

Cheers