10 year fixed - i am right.....aren't i????

SmileyG_2

dwsjarcmcd wrote: »

Not yet! The reason is that if you pay the fee now they may deem it to be non-transferrable to another product. For now say you want to add the fee, then if the rate drops you can apply for that without having to lose anything. Check with the lender.

Just before completion tell them you want to pay it up front to avoid paying interest (it will mean an amended offer, so don't leave it until the very last minute)

David

Even better, add it to the mortgage and pay it off as an overpayment at the rate and timescale YOU can afford!

SmileyG

gitch01

hello people
i might ring them on monday and ask if i can add it to the mortgage. then if i change my mind at the last minute could i change it to pay up front. sounds like a plan to me

dimbo61 - sorry mate i'm 41 now. i'll be 51 when this ten year rate finishes.

3% fixed rate for 10 years. i wish!

luckyfool

stuarthouse wrote: »

:T :rolleyes: nice one, i was just saying that unless a long term fixed was 3% its not worth it ...

I was trying to be helpful in my post.

You would change your tune if you took a 2 yr fixed rate now at 3% and base rate was 9% when you came out of it and the best mortgage rates were 10%+. You would be wishing you had taken a 10 yr fixed rate at any price.

SuzieMum

luckyfool wrote: »

You would change your tune if you took a 2 yr fixed rate now at 3% and base rate was 9% when you came out of it and the best mortgage rates were 10%+. You would be wishing you had taken a 10 yr fixed rate at any price.

Is this likely to happen?

gitch01

luckyfool - thats why i am taking the 10 year fixed now. cant seem to make a short term deal work on my amount and in a couple of years time a fixed under 5% wont
be anywhere.
if someone has a big amount over 100,000 then it will probably be worth taking a short term deal to save money and the difference will be a lot bigger.
but i'm happy to sort out the next 10 years with what i have outstanding.

i rang Britannia today to ask to change the arrangement fee to add it to the mortgage. i was told that i couldn't as the application had already been done, albeit over the phone. i haven't signed anything. sounds like bullshxt to me but i was at work and busy so didn't have time to argue the toss

luckyfool

SuzieMum wrote: »

Is this likely to happen?

Who knows. If you can't afford to take that risk you should be taking a 5-10 year fixed rate. With the shape the economy is in, and the fact that the government is about to start printing money . . . when interest rates do go up they could go up pretty high. Of course we could end up in a Japan like situation with low rates for a decade plus (as mentioned earlier in the thread).

cheers,

Joe

Anon

I am interested to know why people think that the mortgage rates will potentially rocket. When we took out our mortgage in January last year (November), BoE Base was 5%, the SVR for Nationwide was 7%+, and we secured a fix of 5.63% (we therefore thought we had secured a good deal, with forecasts at the time pointing to rises, but in hindsight we would probably not have made the same decision and would have investigated offsets further, the subject of another thread!). Their current fix is 4.68%, base rate is 1% and their SVR is 3.5%.

I appreciate that not all mortgages are linked to the BoE rate (as I understand it is something to do with swap rates/libor rates), but the rate previously had been relatively constant and BoE fairly stable for a number of years, but parting company during the credit crisis (interesting article at http://www.thisismoney.co.uk/libor)?

Anon

dimbo61

Gitch01
I have a much bigger mortgage than you but I hope to have it paid off by the time I am 51 ( 47 at moment ) only another £72,750 to pay off!
On a fixed 5 year deal only wish it had been 10 !!
GOOD LUCK

luckyfool

Anon wrote: »

I am interested to know why people think that the mortgage rates will potentially rocket. When we took out our mortgage in January last year (November), BoE Base was 5%, the SVR for Nationwide was 7%+, and we secured a fix of 5.63% (we therefore thought we had secured a good deal, with forecasts at the time pointing to rises, but in hindsight we would probably not have made the same decision and would have investigated offsets further, the subject of another thread!). Their current fix is 4.68%, base rate is 1% and their SVR is 3.5%.

I appreciate that not all mortgages are linked to the BoE rate (as I understand it is something to do with swap rates/libor rates), but the rate previously had been relatively constant and BoE fairly stable for a number of years, but parting company during the credit crisis (interesting article at http://www.thisismoney.co.uk/libor)?

Anon

Britain is about to start quantitative easing/printing money. It's very difficult to get the balance right doing this (to stop deflation but avoid Zimbabwe or Weimar Germany like massive inflation). If you want to see what some of the consequences of printing money (among other things) on interest rates why don't you google "Zimbabwe interest rates". One of the first articles there is from the Telegraph on 2nd October 2007 quoting "official interest rates" of 800%. Is it such a stretch to believe that rates in the UK "could" hit 9 or 10%? It's not as if it is that long since the UK had rates above 10%, and these are definitely troubled times. I'm not saying I think it will happen, it probably won't. But if you can't afford to take that risk then you should be taking a long term fixed rate . . . thats the bottom line.

SuzieMum

luckyfool wrote: »

if you can't afford to take that risk then you should be taking a long term fixed rate . . . thats the bottom line.

Thanks it makes sense. We just came out of a fixed with Britannia and are wondering if we should stay on the nice SVR and keep a close eye on the fixeds and come about May time we will fix for 5 or 10 yrs. I think we are pretty sure nothing will go up between now and May so are holding for another cut on the fixed rates I think. I much prefer the security of knowing what we are paying and although the 2 or 3 yr fixeds are attractive, I dread to think what would happen after that!!!