Is 3.99% 5 year fix the lowest it will go ??

AntiLochus

samba wrote: »

As regards mortgages, I reckon you will get sub 3% this summer for 5 years or more fixed. Given the current base rate, 4% (3.5% over base rate!) is extraordinarily high - when the market gets going again fixed rates will drop as the lenders compete for market share.

Hmmm, my gut feeling is that banks will not offer anywhere near 3% fixed mortgages for 5yrs (2-3yrs yes but not for longer) - this just does not make good business sense. If the 3.99% deals are being pulled, it probably means the money allocated to these deals has been spent - quite quickly. That to me suggest many people jumped at these offers and they were VERY popular.

So why would the banks start offering even lower deals when they can snare everyone at around 3.99%? Even if long-term lending rates go down further - if the banks keep offering 3.99% deals then they are simply making more profit - which is VERY important now.

Come on - hands up - who thinks 5yr fixed at 3.99% is NOT an attractive deal in these uncertain times - even with fees?

stolt

3.99% is a superb rate for 5 year.fixed, even better without fees. I guess the banks want those borrowers off the SVR asap. But after a&l and abbey have pulled the 3.9% deals I reckon there start off around the 4.15% mark now even with fees.

samba

AntiLochus wrote: »

Hmmm, my gut feeling is that banks will not offer anywhere near 3% fixed mortgages for 5yrs (2-3yrs yes but not for longer) - this just does not make good business sense. If the 3.99% deals are being pulled, it probably means the money allocated to these deals has been spent - quite quickly. That to me suggest many people jumped at these offers and they were VERY popular.

So why would the banks start offering even lower deals when they can snare everyone at around 3.99%?

Are they really snaring everyone, or just those with itchy trigger fingers? It could well be that there are plenty with enough nerve to hold out for better rates and they may just get what they want after all those with more nervous dispositions jump the gun?? Who can say - certainly not me, but then again nor can anyone else, not even the professionals...

cbrpaul

HSBC have now pulled their 5 year fixed with

3 Year Fixed£599 fee @ 3.99%

stolt

cbrpaul wrote: »

HSBC have now pulled their 5 year fixed with

3 Year Fixed£599 fee @ 3.99%

That's makes interesting reading, strange that these deals are all being pulled.

I phoned a and l today and my offer is made up today and being posted out so I should have that within the next couple of days. Contracts should be exchanged in the next couple of weeks so. It looks like the a+l rate come at just the right time.

cbrpaul

im still waiting for a updated mortgage offer from A+L , they sent it 2nd class post last Thursday


I notice it says i have 3 months to accept the offer also, so could hold out till then i guess !!!


I was wondering also though , is it 5 years fixed from the point of the mortgage funds are transfered or is it just fixed until April 2014 no matter when the funds are transered ??

damianmkv_2

mine says " your rate is 3.95%, starting on the day of the switch and ending on 30th June 2014". My current deal expires 30th April so the first new payment will be taken on 1st June 2009, hence end June 5 years later

cbrpaul

thx

So you got a 3.95% fix then ?

damianmkv_2

cbrpaul wrote: »

HSBC have now pulled their 5 year fixed with

3 Year Fixed£599 fee @ 3.99%

Just seen that..their standard product 5 year fix ( no fee ) is now 5.19% and the APR is up from 4.1 to 4.6%

http://www.hsbc.co.uk/1/2/personal/mortgages/remortgage/fixed-rate;jsessionid=0000PwnMJMMDsGclwyaJxio7Hgt:12ntf1n0a

damianmkv_2

cbrpaul wrote: »

thx

So you got a 3.95% fix then ?

I have signed a deed of variation which I sent back to them last Thursday so I hope so but I haven't had a confirmation back through the post yet.

Their offer was dated 30th March so I can't see a reason why I shouldn't get that rate