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

dannykos

damianmkv wrote: »

libor is now 1.71%, down from 2.16% on 4th March so its not unreasonable to expect that better deals may come....

banks use swap rates to determine future fixed rate lending costs. LIBOR is used to determine future variable rates.

Riog

dannykos wrote: »

banks use swap rates to determine future fixed rate lending costs. LIBOR is used to determine future variable rates.

Except in the case of Chelsea, Yorkshire and others who just ignore it but put up their rates within hours of any upturn.

space_rider

Dithering_Dad wrote: »

Let's hope, for my sake, that they stay on the floor for a further 12 months!!

Me too but if it starts to climb and it looks like it`s going higher than 9%, I`ll be paying to get out of it.

Dithering_Dad

space_rider wrote: »

Me too but if it starts to climb and it looks like it`s going higher than 9%, I`ll be paying to get out of it.

The trouble is that the banks move quickly as soon as they sense a 'sea change'. Remember how fast those trackers vanished as soon as the BoE started to reduce rates. I'm scared stiff that the day before my redemption period ends, the banks will wake up to the next financial disaster and cull all of their fixed rates before I get one sorted.

The only avenue open to me will be to stay on the SVR and overpay like a blimmin' demon!

cbrpaul

Yes when i started this thread i wanted people to put up the deals they found ,

Lets keep it going, and if we are quick we can beat the banks together


As soon as you see a new or good deal pop it up here

Blunty

What's to stop the banks offering a product that lets a customer 'borrow' (now) an amount based on up to 3.5x their income on a fixed rate over a long term, with repayments starting now, but which is set aside somewhere within the bank to be drawn on when the customer finds the house they want - whether that be now or six months or a year's time? In other words, it can't be accessed until a mortgageable house is available? That way, everyone knows where they stand.

WestonDave

Interesting comments on this topic on the R4 Today programme this morning suggesting gilt yields are the thing to watch. Apparently the A&L and Abbey rates came from the drop in gilt yields following the quantitative easing announcement - guy from Charcol's was suggesting Woolwich are about to announce new rates (possibly today) with maybe another couple tommorow.

My problem is that I need to balance having a good long term rate (for which the A&L deal is very attractive at 3.99%) against the infinitely greater flexibility of my current SVR offset deal (which is cheaper at 3.69% but not enough to really be an obstacle). The real loss of moving for me is that on my current deal if I were made redundant, I could borrow back all the capital repayments I have made so far, stick them in an account offsetting the mortgage (so keeping interest costs as low as possible) and use them to cover the monthly interest thereby preventing any chance of repossession.

Hopefully if other deals are coming out this week there won't be an upswing on these fixed deals for a couple of weeks and I can do a bit more fishing at work to see how safe things are before making a decision whether to jump for a 5 year fix. I don't see much point in a 2 year fix right now as that could land me right in the fire if the anticipated hike in interest rates comes at the wrong point.

Edited to add - Woolwich's equivalent is 4.49% with a £995 fee which is not as good, their "attraction" is that it reverts to a +1.49% tracker after the term. If you think rates might spike and drop within the 5 years it might be worth it. They've also got some 3 year capped offset trackers which might interest someone.

adandem

Blunty wrote: »

In other words, it can't be accessed until a mortgageable house is available? That way, everyone knows where they stand.

But if you don't make the payments or find a house what are the bank left with
Mortgages are secured against a property (insurance for the bank), that's why so may are tightening up on LTV isn't it

cbrpaul

WestonDave wrote: »

Interesting comments on this topic on the R4 Today programme this morning suggesting gilt yields are the thing to watch. Apparently the A&L and Abbey rates came from the drop in gilt yields following the quantitative easing announcement - guy from Charcol's was suggesting Woolwich are about to announce new rates (possibly today) with maybe another couple tommorow.

thx for the info dave

Fizzy1

I am new to this forum but have been watching for some time to get help choosing a new rate as my existing 5.99 comes to an end very soon. When Nat West phoned me today offering 3.99% for 5 years for a £99 fee I jumped. The security is important to me and although my crystal ball is usually the cloudiest I cannot see rates going much further. Perhaps the competitive edge for banks will come from lower fees.

:j