Duration of fix...?

sandspider2000

Hi all.

I've just had an offer accepted on a house, and am planning on getting a fixed rate mortgage (less than 60% LTV) as I think rates are more likely to go up than down now.

I'm thinking 3 -5 years as I really have no idea what will be going on in the mortgage markets then, but at the same time it's long enough to absorb the cost of fees, valuations etc.

There's a nice 5 year fixed from HSBC at 3.99% plus £999 fees, though they only allow limited overpayments.

Does anyone have any thoughts as to how long I should fix for / what is likely to happen to mortgage rates in the next few years? (Yes, I know, a crystal ball would be useful here but any thoughts other than my own would be appreciated!)

Many thanks,

Giles

Robert_Sterling_3

OK. Since you insist.

I think mortgage rates will go up over the next five years.

The mortgage you mentioned might be very good if you have large loan and they will be less good if you have a smaller loan.

dunstonh

Thats a nice fix and actually quite tempting. I said to myself that once they get below 4% I would move off my SVR.

beecher

That is a good fix, depending on whether your size of mortgage makes it worthwhile paying the £999. I'd definitely be looking for a 5 year fix atm.

sandspider2000

Thanks one and all. Yes, the mortgage would be over £100k, and I've done various calculations and this one does seem to be best value. I now have an agreement in principle!

(As an aside, HSBC's standard variable rate is currently 3.94%, and this is the only fixed rate I've seen where the fixed rate is anywhere near SVR - normally the fix is much higher...)

Cheers,

Giles