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Care to predict this please?

Legacy_user
Posts: 0 Newbie
Trying to sort a mortgage out!. A mortgage is available from two different banks.
Not sure whether to fix for two years at 6.19% or three years at 6.19%.
Does anyone out there predict that the banks variable interest rates will exceed 6.19% in two years allowing us to fix for two years?.
Not sure whether to fix for two years at 6.19% or three years at 6.19%.
Does anyone out there predict that the banks variable interest rates will exceed 6.19% in two years allowing us to fix for two years?.
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Comments
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you must have a high LTV - 3 year for me - Its going to be a bad place to need to remortgage, chase a rate in 2 years - Hopefully better in 3!0
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The 3 year one, and overpay as much as you can to try your best to improve your LTV. The 3 year fix gives you slightly longer to try to do so.0
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yup 3yrs is best considering interst rates can only go up0
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But would they go over 6.19% by the end of two years? Thats a very large leap to do in 2 years surely? :undecided0
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So interest rates went from 5.5% in Jan 08 to 0.5% in March 09 and you think a jump of less than 6% in two years is unlikely? Anything can happen, if you need to know what your payments are you should fix for as long as you can."You've been reading SOS when it's just your clock reading 5:05 "0
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I remember interest rates going from around 8% to 15% in one day in the 1990's - now thats a big leap.
I think I understand what you are asking, will interest be higher in 2011 or 2012 - impossible to say anything more than they will almost certainly be higher in 2011 and 2012 than they are today nobody knows by how much.
I took a 5 year fix this year, my only regret is that I couldnt find a suitable/acceptable 10 year fix.
It may be that your ltv should inform your decision, if you are close to 90% then the longer the fix the less chance that you will be in negative equity at the end of your fix - fingers crossed and certainly the longer the fix the more time you have to overpay and reduce your ltv.0 -
Collective wisdom appears to be pointing to the three year deal and in truth I'm not entirely sure I disagree with that.
I think it has to be borne in mind that there is little or no proof that things will be any better,or worse, in 2/3 years and as such as with all decisions of this type it is a calculated gamble.Space available for rent0 -
Its not about guessing what the rate will be in 2 years, if rates are on the increase the deals available aint going to be better!0
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Trying to sort a mortgage out!. A mortgage is available from two different banks.
Not sure whether to fix for two years at 6.19% or three years at 6.19%.
Does anyone out there predict that the banks variable interest rates will exceed 6.19% in two years allowing us to fix for two years?.
What you really need to work out is if the fixed deal will be better over the term than the other options.
Just guessing the interest rate in 2-3 years does not tell you that.
You need to factor in charges and work based on the best lifetime deal you can get.
I did the calculation for a person switching from a good tracker to a 3 year fix.
if rates were low for 18 months then rocketed they would have to go ever 10% forthe next 18month to make the Fix the better deal over the 3 years.0
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