Surfing the Wave of Variable rates

DawnCBUk

:eek:

Hi all,

Like many many other people I came out of a 2 year fix in late 2008 and am sitting happily on a very low variable with the Halifax. Originally I had more than 70% LTV in my property but due to the current market at last valuation in Jan 2009 the house is now at about 80% LTV.

I am salivating at some of the LOW fixed rates but my quandry is thus.

Do I wait for a few more months for a bonus I MAY get which will give me 10k clear and plow that into a mortgage to get a decent deal for less than 75%?

Do I start the application process now based on a bonus I MAY get?

Do I continue to ride the variable rate wave for a bit more time risking the rates raising quickly?

Additional points/questions to consider:
I am saving for a sabbitcal in 2011.
If I use this money it will be 10k less for my savings for sabbitical but if the rates skyrocket to 15% mortgages that will impact me more.

Should I fix for 2 years as when I am away it will be up?(better deals for 2 years at the moment even at more than 75%)

Or wait for a decent 3 or 5 year deal?

Phew loads of questions... perhaps someone will have an idea of what to do?

Ta for your kind consideration.

Dawn

cbrpaul

My view is :

Fact, rates as some point will rise ,

A 2 year deal is not long enough , i feel rates will be alot higher by this timescale and you will find it very hard to find a good fixed rate deal at that time.


The way i see it , you can either , ride the wave of low SVR,s and take a gamble that rates wont be moving for some time yet , or :

go for security and peace of mind and get a long term fix now to hopefully tide see you through the " rate increase period "

In your case your LTV may need to be better to get a good deal as you say !!

Good luck in whatever you do !!