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

hostman

IMO inflation will return with a vengeance within the next 18-24 months. The time to fix is between now and then. Perhaps fixed rates will fall further, one thing that won't reduce is the application fee.

cbrpaul

i now have abit of problem !!!! , my other half feels better deals will come along soon :rotfl:


IF i go for it , i will decline the insurance !!!

cbrpaul

hostman wrote: »

IMO inflation will return with a vengeance within the next 18-24 months. The time to fix is between now and then. Perhaps fixed rates will fall further, one thing that won't reduce is the application fee.

Agreed,

but i think rates will slowly ( .25% per month ) rise towards end of the year early next !!

clairehi

The key thing for me is the LTV. these deals are only available for people with a lot of equity like 65% ltv or less. Maybe as house prices fall further,lower rates will be offered but only for 50% ltv?

cbrpaul

clairehi wrote: »

The key thing for me is the LTV. these deals are only available for people with a lot of equity like 65% ltv or less. Maybe as house prices fall further,lower rates will be offered but only for 50% ltv?

yes good point,and a good factor to take into account also , only the ones who have alot of equity will be offered the better deals, !!


I understand the issue that for many the 65% ltv is not reachable to enable these kind of deals for them !!!

Ive seen 5 year fixed rates of 6%+ for 75% ltv not even 1st time buyers can get this rate, unless they have a massive deposit !!!

pilch23

My fixed mortgage rate finishes in August and I can put a new deal in place upto 4 months in advance.

I have to stay with Abbey and have no option to change, I have been offered the following:-

1 Year Fixed 4.9% Fee £724
2 Year Fixed 3.99% Fee £524
3 Year Fixed 4.49% Fee £125
5 Year Fixed 4.99% Fee £125
7 Year Fixed 5.29% Fee £125

All above are less than current at 5.54%

Job is secure, but if job went anyway, house would go also.

Do I wait to see if drop further? I am warming to 5 year as I firmly believe rates will increase in the future.

Thoughts/comments please

woody252506

Pilch23 my personal opinion is to go for the 5 year fix at 4.99%.

We are FTB saving hard and are coming back in July/Aug with a 15% deposit to buy our first home and at the minute there are deals for 5.3% fixed for 5 years with no arrangment fee. If a similar deal is around when we are ready to buy ill be going for that to cover for any rises in the next 2 years or so.

Thats all my opinion though - who knows whats to happen!:rolleyes: :cool:

Thriftysaver

Pilch,

We were offered the same as you, only 5.29% for 10 years. We have to stay with Abbey too. We took the 10 years as we have 21 years left on the mortgage and it is within our means at the moment. Our other debts of £700 pm end in 4 years (not secured). We are on interest only at the moment.

Our house has not got 27% equity anymore, more like 17% so we jumped at long term fix.(the idea to overpay the £700 when that ends, and any extra before when I go full time again in the near future.

A friend of mine tried to go to Halifax. Her house is valued as the same as mine and she could not have the low deal. They would only give her a 7.09% fixed for 2yrs. She's fuming.

Just need now to get a bit more equity in our house as I do worry they will write in the future and want some money.

Gazza1964

I decided this was good enough for me and completed an application over the phone today - I am happy with 3.99% and can't really see it dropping much lower than this for a five year fix - but if it does where can it go 3.5% or 3% - I cant see it happening but then I thought rates would climb to 9% + about 18 months ago so what do I know ( erm nothing ).

But even if it does drop I've got a rate I would of snapped your hand off for 18 months ago - free valuation - free legal - no arrangement fees - £30 electronic transfer and £25 for not taking their buildings - and there going to give me 5% interest for the first year on the account I just opened ( upto £2500 ). Could I please have some jam on it aswell. :-)

Q_Wales

I don't suppose these deals are still valid for buy to let mortgages?