Yikes - will interest rates stay low

Kavanne

Brittania's website seems to be broken?

poet123

nesssie1702 wrote: »

Hmm - I think things will start moving after the General Election next year and that there will be an upward trend after that. The bubble's going to burst at some stage.

My dilemma is that I've got 14 years left on a mortgage of £70K with the house valued at c.£130K. My fixed rate (reypayment) with Nationwide came to an end in June and I've reverted onto their BMR of 2.5%. Looking to fix again for another 5 years, but not found the product I'm looking for yet!

Can I ask the OP where they got the deal of 4.99% fixed for 7 years?

We are also just about to go onto Nationwide SVR, and it is one of the best around. Having had a few mortgages in our time, we will play the waiting game on the SVR and watch the trends and only think of fixing if there seems to be an upward trend.

Why would you fix now at even 5% if you can pay half of that for another 12 months or so? Being on the SVR with a very low LTV and no penalties,(as we are) is the best position to watch the trends from.

dannykos

poet123 wrote: »

we will play the waiting game on the SVR and watch the trends and only think of fixing if there seems to be an upward trend.

that's all fine and well if you managed to call it right! i, like many others got on the A&L 3.99% 5yr no deposit fix earlier on in the year - but some others thought there was better to come and waited it out. By the time the trend becomes apparent, it may already have been too late.

aulora

Can anyone help me? My current two year fixed term runs out end of November when I revert to LIBOR +2.29%. (I think this is the three month sterling LIBOR)

I have been looking at various other mortgage deals, but I am bamboozled and don't know where to turn (I don't have a partner to discuss and share!).

My mortgage is for 145,000. My house worth between 190,000 - 200,000.

I am 48 years old and my current mortgage runs for another 21years (taking me past retirement age.)

I am in full-time secure employment earning 34,000 gross per annum.

My credit rating is 'Fair' on Experian.

I ahve no dependents (except a 20 yr old daughter at university, if she counts)

What should I do??? I need a rate that stays under my current rate - just about to end - of 6.19%; this costs me 50% of my take home monthly pay and I can only just manage it, but not very well.

Does anyone know any good deals I could look for - or should I wait a bit longer and stick with the LIBOR +2.29% that I am about to move to?

Can anyone tell me what sterling LIBOR is usually, on average? I know its low at the moment, but how high could it get and how quickly?!

Thanks!

mark55man

here's a reply I made on a completely different thread that may be useful to you

i would say stay on the svr foras long as you can hold your nerve, keep watching all the longer term fixes, and as soon as they start going up fix for as long as you can - you have to be ready to move, and need to keep a watch - which is a pain

this will give you some extra time to save and may enable you to qualify for better rates

however if you can fix now lower than your svr then I would still think about a longer fix - IMHO trouble is always more than 2 years away, but less than 5

finally - you could look at one of the BS that hold an offer for 6 months, and take advantage of the SVR for now, knowing that you can complete at the end (you may have to forego a deposit but depending on the size of your mortgage this may still be economical).

if rates start raising quickly (IMHO unlikely) as I think a bit of competition will keep mortgage rates low even if BoE go up, then you could move to complete faster - but possibly not worth the hassle.

good luck, but like one of the posters stated when things start to change it happens very quickly, so I would be cautious about waiting too long !!

mark55man

aulora wrote: »

Can anyone help me? My current two year fixed term runs out end of November when I revert to LIBOR +2.29%. (I think this is the three month sterling LIBOR)
... snip ...
Does anyone know any good deals I could look for - or should I wait a bit longer and stick with the LIBOR +2.29% that I am about to move to?

Can anyone tell me what sterling LIBOR is usually, on average? I know its low at the moment, but how high could it get and how quickly?!

Thanks!

There is a thread on LIBOR where "inspector monkfish" updates it daily, and answers LIBOR Related questions - very informative !!

aulora

Thanks Mark88.. that's very helpful to me. Just one thing - can you tell me what IMHO is? Sorry, I'm sure that must be a stupid question, but I don't know what that is.

Thanks.

pwllbwdr

I'll answer this one- in my humble opinion.

Now all we need is a definitive answer to the original question....

aulora

Thanks, and there was me thinking IMHO was some complicated financial term!

I am not always very clued up, IMHO!

I think my question has largely been answered. I think (IMHO) that I will hold out at least till March 2010 or so and keep my eye on the 3 mth LIBOR against what the fixed rates available and if/when I can get a fixed rate at under 5% I think I would go for it before I end up with LIBOR up at nearly 4% (which would effectively render me homeless) It's terrible that the difference between being able to afford the roof over your head or not comes down to nothing more than a gamble!

pwllbwdr

12 month LIBOR is still only around 1.1%. I think I read in the LIBOR thread that that is the banking expectation of where rates will be in 12 months time. Of course, they can be wrong too.