Best Ten Year Fixed Deal .... Chelsea Bs 4.59%

iannj

anyone know of a better rate for 10 year fixed rate...... i am very tempted by this one ......

samsuka

iannj wrote: »

anyone know of a better rate for 10 year fixed rate...... i am very tempted by this one ......

If you can do so, hang on, there will be much better deals around the corner. The BoE expects inflation to stay below 2% for the next 2-years, so rates won't rise, and they are still pumping money into the system to encourage borrowing, which all means that rates are falling and will continue to do so.

By the end of the year i think there is a very good chance you will be able to pick up a 10-year deal for 3% or close to that.

Ta

S

dannykos

samsuka wrote: »

By the end of the year i think there is a very good chance you will be able to pick up a 10-year deal for 3% or close to that.

Sorry - have to disagree on that one. Fixed rates are set by swap rates, and the current 10yr swap is 3.76% - so that would have to fall to less than 2% before someone would be mad enough to offer a 3% 10yr fix IMO.

samsuka

dannykos wrote: »

Sorry - have to disagree on that one. Fixed rates are set by swap rates, and the current 10yr swap is 3.76% - so that would have to fall to less than 2% before someone would be mad enough to offer a 3% 10yr fix IMO.

Exactly, but thats the point, they are likely to come down further in the future (they were almost 5% last year), with BoE rates also likely to drop to 0.5% the pressure remains downware. Also as mortgage companies are going to eventually start to get more competitive and look for business, the premium will probably fall.

Mortgage rates are getting better almost by the day, so its better to wait a little longer, wait for the government to bail out the banks a little more and wait for them to lend a little more.

unite79

id take my chances on that rate, I see the government forcing banks to start lending again, with increased LTV's ie 90% - but dont see 10 year fixed rates at sub 4% - but maybe I am crazy in thinking base rate will be higher than 3% within 24 months!

iannj

unite79 wrote: »

id take my chances on that rate, I see the government forcing banks to start lending again, with increased LTV's ie 90% - but dont see 10 year fixed rates at sub 4% - but maybe I am crazy in thinking base rate will be higher than 3% within 24 months!

i tend to agree with you,i can't see 3% offers on 10 year deals,personally..... i was interested in lloyds tsb 10 year fixed at 4.99% but they have actually increased this to 5.29%. many other banks are 5.5%+ so maybe we are actually at the lowest point alreaady for longer term fixed deals.

paulfaz

samsuka wrote: »

If you can do so, hang on, there will be much better deals around the corner. The BoE expects inflation to stay below 2% for the next 2-years, so rates won't rise, and they are still pumping money into the system to encourage borrowing, which all means that rates are falling and will continue to do so.

By the end of the year i think there is a very good chance you will be able to pick up a 10-year deal for 3% or close to that.

Ta

S

Very unlikely 10 year fixes will get to 3%. Inflation maybe falling but the bank's margins on deals this long won't - they need to make money at the end of the day.

udydudy

unite79 wrote: »

id take my chances on that rate, I see the government forcing banks to start lending again, with increased LTV's ie 90% - but dont see 10 year fixed rates at sub 4% - but maybe I am crazy in thinking base rate will be higher than 3% within 24 months!

I totally agree with unite79, i expect 90% LTVs pretty soon as banks have to get back to their business of lending else they really go down and not beable to pay us our money that we have lent them!!!. but sub 4% rates are humbug unless we go into a japan like decades long deflation.

I think i wud prefer 4%+ interest rates than deflation!!!.l

stolt

udydudy wrote: »

I totally agree with unite79, i expect 90% LTVs pretty soon as banks have to get back to their business of lending else they really go down and not beable to pay us our money that we have lent them!!!. but sub 4% rates are humbug unless we go into a japan like decades long deflation.

I think i wud prefer 4%+ interest rates than deflation!!!.l

i would agree with this also, although ive just applied for the 5 yr fix at 4.29% with chelsea, seem the cheapest out there. My brother in law keeps banging on about getting SVR and then worrying about a fix when the rate rise. I can see the rates staying low for too low and my thinking is that there are alot of people on SVR just waiting for the first rise before they start to fix and I believe the banks wont be offering 4.29% 5 yr fixes for very long. Plus i want them to rise a little because i'm going to look stupid in a year or twos time when my brother law tells me he told me so!

Gazza1964

Northern Rock has a 10 year fix at 5.59% - not as cheap - but this is a more flexible product - over & under payments ect - and also there are no fees involved unlike the Chelsea which i think is £1k - worth considering - punch some figures thru -

hxxp://www.whatmortgage.co.uk/calculators/fleximortgage.html

Hope this helps.

samsuka

unite79 wrote: »

id take my chances on that rate, I see the government forcing banks to start lending again, with increased LTV's ie 90% - but dont see 10 year fixed rates at sub 4% - but maybe I am crazy in thinking base rate will be higher than 3% within 24 months!

You are a little crazy!"! The Bank of England doesn't think inflation will be below 2% in the next 2-years, and continued deflationary pressures make deflation much more likely that inflation worries. And without inflation there is no chance the BoE rate will rise anytime soon.

It is likely that inflation is going to remain low for quite some time, and BoE rates will probably fall to 0.5% and stay there well into 2010, and with more and more pressure on the banks to lend and more and more willingness to lend as they offload their bad debts, we will see LTV's rise over the course of the year and certainly see even better rates than we see now.

My cousin (a tree surgeon) was telling me authoritatively the other day that interest rates would shoot through the roof in the back of rising inflation but when i asked why he couldn't tell me. Commodity prices (bar gold) are all low, including and especially oil, we have high unemployment, companies are struggling to sell their goods as it is, so what on earth is going to push inflation, and so interest rates, higher??