10 year fixed rates vs. low trackers

Mike1999

Mike1999 wrote: »

An interesting article there but I've gone to the Abbey site and it's 60% LTV so you'd require a 40% deposit minimum - is this realistic for the first time buyer?! I am a FTB and the answer is a resounding "no". Obviously it's great if lenders did start trying to get off their !!!!!! but the 10yr fixed at 3.99% will still never appear. I'm afraid I agree with Hearts.

The 40% deposit is probably also hard to achieve for movers or remortgagers too in the current climate with falling valuations - ahhh to better times ahead! :beer:

beecher

Quite tempted by that Abbey offer - any downsides to it that anyone can see?

edit: seems to be an arrangement fee of £995, and not the £595 quoted?

toonfish

dannykos wrote: »

I'm personally holding out for a 3.49% 5yr fix, or a 3.99% 10yr. I think both will be available in the next few weeks IMO.

I hope you're right but doubt I'll be able to cope with the level of business if that happens. I don't think long-term fixes will drop much more personally

Teachertim

Can't you port your current deal then remortgage onto a fix as soon as Merv starts putting the rates up ? If it is a mortgage you have held for a while then there should not be redemption penalties for doing so. You will probably end up on a slightly higher rate fix as rates will be moving up, but, that could be in two years time and you woudl have had the benefit of 2 years on your fantastic deal with C and G.

Inflation is going to be a huge issues as soon as it looks like we have turned the corner, so if thw above is not an option, I would fix now for at least 5 years, possibly ten as rates historically average out around 5.5% so it is unlikely you will loose out.

supersavingsharon

Foyzone wrote: »

Thats what Im after!!!!

And me too!!!!!:beer:

dannykos

toonfish wrote: »

I hope you're right but doubt I'll be able to cope with the level of business if that happens. I don't think long-term fixes will drop much more personally

you may be right - but recent swap rate reductions still give me hope. 10yr swap is down .2% in the last month alone!

My current deal ends 30th April - so I need to make a decision sooner rather than later!

Peelerfart

beecher wrote: »

Quite tempted by that Abbey offer - any downsides to it that anyone can see?

edit: seems to be an arrangement fee of £995, and not the £595 quoted?

Maybe the fixed rates will go a little lower soon ?

Time to check the tea leaves..........