Is it Time to buy and secure a long-term fixed rate mortgage?

mark55man

Dithering_Dad wrote: »

You could always change the term of your mortgage from 13 years to 10 years to coincide with the end of your fixed rate deal. Obviously your monthly rate will be increased with a shorter repayment period, but it'll be a fixed amount so easy to budget into your household finances.

... snip ...

I have thought about it, but this time we are adding a bit to the mortgage to replace and extend the kitchen so will be using the reduction in rate to fund additional borrowing resulting in nearly the same (a bit more) cost. this small increment is the only thing that could persuade me to take a 5 year, but that is unlikely

also from 13 to 10 years is quite a lump on the repayment - I will look to save and make a one off repayment, but not really sure I can commit to doing it regularly

mewbie_2

Is it Time to buy and secure a long-term fixed rate mortgage?

It might be time to buy a good strong piece of rope about six feet in length. Maybe I'll wait till after the G20.

DaveyDave_3

Dithering_Dad wrote: »

When the BoE should have been focussing on the RPI figures before and during the housing boom (which would have helped to aleviate our current difficulties), they focussed on CPI. Now that we are in the poo, they are focussing on the RPI and ignoring the CPI. This will also be a fatal mistake. By the time they again switch their attention to the CPI, it will be too late and inflation wil be out of control. They will have to increase interest rates to counter the threat of inflation and we will once again see 8 to 15% interest rates.

I agree with what you have said but I would question whether the BoE would actually raise IRs to control CPI/RPI. It seems to me that the BoE have completely abandoned their remit to control inflation with interest rates - why would they lower IRs by 5% in less than a year when CPI is still way above their 2% target?. If they are willing to ignore this, why do you think that they would be forced to raise IRs in the future in response to heightened inflation?.

I'd be interested in people's views on this as I can't seem to make sense of it.

Really2

Unless the £ slips further (which looks unlikely) where is any more inflation going to come from?

Personaly I would not fix untill banks are wanting to lend money.

Lets face it the £ is over 25% lower against the $ and 20% down against the euro in the last year but inflation is still only 3.2%.

So I think I am going to stick with my tracker I do not feel there are any signs out their that rates are going to shoot up.

If there was fixed rates would aready be 10% for a long term fix.

ON CPI it will fall next month as most energy suppliers have dropped their rates this month. Also the £-$ rate as been fairly consistant for the last 3 months and in reality we are seeing Dec. currancy drop (it takes a good few months to work through).

Personaly I think inflation will keep dropping the QE comments today seemed to have the desired effect against the euro.

Dithering_Dad

mewbie wrote: »

Is it Time to buy and secure a long-term fixed rate mortgage?

It might be time to buy a good strong piece of rope about six feet in length. Maybe I'll wait till after the G20.

I didn't think you'd be the type to let a bit of economical bad news to affect you so much Mew.

I do hear a lot of people on here talk about not buying a house during a recession. All I can say in response is that a mortgage is typically for a duration of 25 years - during which we'll experience at least 4 recessions. I bought my first house in the 90's recession and feel it helped make me into the cautious person I am today. Much better than buying in a boom and thinking the good times will never stop.

mewbie_2

Dithering_Dad wrote: »

I didn't think you'd be the type to let a bit of economical bad news to affect you so much Mew.

No you're right, but I type as I think, and that was the choice of words that worked for me. I am not really thinking of buying any rope or doing anything 'silly'.

Probably my disappointment today comes from the euphoria yesterday of the rise on the Dow and then the colder reality of today and the FTSE plus Merve's comments. Of course it's silly to be swayed by a single days events, but I keep looking for good news, and it keeps being swamped by bad news. And some of the bad stuff seems to be self inflicted, avoidable banana skins.

Surely the 'top' people could just work a bit harder, get their act together and stop screwing things up. Even if they can't wave a wand and make it all better.

Dithering_Dad

mewbie wrote: »

No you're right, but I type as I think, and that was the choice of words that worked for me. I am not really thinking of buying any rope or doing anything 'silly'.

Probably my disappointment today comes from the euphoria yesterday of the rise on the Dow and then the colder reality of today and the FTSE plus Merve's comments. Of course it's silly to be swayed by a single days events, but I keep looking for good news, and it keeps being swamped by bad news. And some of the bad stuff seems to be self inflicted, avoidable banana skins.

Surely the 'top' people could just work a bit harder, get their act together and stop screwing things up. Even if they can't wave a wand and make it all better.

I'm trying to 'drink from a half-full glass' at the moment with the stock market. I try to remember that I'm currently buying shares at bargain prices and the longer the market is depressed, the more bargains I can buy. I'm not retiring for more than 25 years - plenty of time for another 3 booms and 2 busts! (I'm hoping to cash in and miss the 3rd bust )

When I see the 'red' splashed across my portfolio, it doesn't help much though.

Dithering_Dad

Not bad going for a thread on this particular forum. Only one idiot per page. Excellent


p.s. another one for the 'Ignore' list, methinks. :cool:

mewbie_2

Dithering_Dad wrote: »

I try to remember that I'm currently buying shares at bargain prices and the longer the market is depressed, the more bargains I can buy.

Yep, me too.

Dithering_Dad

mewbie wrote: »

Yep, me too.

Is it working?