Mortgage Query

jizba

Hi All

I need a mortgage of around £60K for a 10 year period and I am toying with the idea of choosing Northern Banks base rate tracker currently at 3.09%, I could manage a rate increase of 1.5%, am I making a good decision or are rates likely to rocket over the next number of years?

I have been thinking about a 5 year fixed rate mortgage, however they all seem reasonably high.

rjh090384

i am no expert but last year i took out a 5 year fixed on the advice of my bank that the rates will drop now but they will have to rise again and i do think his will happen in th enext 2 years. personally i prefer the security of a fixed payment to budget with.

thriftyminx13

I'm on the base rate tracker with the northern bank at the minute. Talk to them and ask if there are any penalties for switching mortgages to a fixed rate down the line. I am happy to stay on the base rate tracker at the minute as its hard to determine when rates will rise but by all accounts cant see it happening very quickly.

best advice give them a phone and speak to a mortgage advisor.

jizba

thriftyminx13 wrote: »

I'm on the base rate tracker with the northern bank at the minute. Talk to them and ask if there are any penalties for switching mortgages to a fixed rate down the line. I am happy to stay on the base rate tracker at the minute as its hard to determine when rates will rise but by all accounts cant see it happening very quickly.

best advice give them a phone and speak to a mortgage advisor.

It costs £100 to transfer, however does the fixed rate not vary if you have not signed up for it?

shaz77_2

What are the best 5 year fixed rates at present?

thriftyminx13

jizba wrote: »

It costs £100 to transfer, however does the fixed rate not vary if you have not signed up for it?

Yes it will go up as the base rate goes up. depends on your trade off you could go base rate tracker and then if base rate goes up says 0.5% then think of switching to fixed rate...

But I'm not a financial adviser etc maybe you'd be best speaking to one or I think the bank will tell you. I know the ones in the Northern Bank aren't on commission for mortgages so they have no reason to spin you a line.

But thats good to know that its only £100 to change over to fixed rate.
Thanks.