Fix now!!

abbecer

If you are looking at fixing your mortgage do it now!! My mortgage deal ends on 30th June so I have been looking about for new deals. I found a suitable one but thought it would be best to wait until the Bank of England announced their rates shortly incase they were reduced. Until i received MSE newsletter yesterday i thought that fixed rates were set in accordance with the interest rates. I did not realise that they are set according to the stock market predicted performances (think that's right!!). Anyway as recommended by Martin I hastily rang up to sort out the fixed rate. Since last week it has risen by nearly 0.3%. I know this is not a massive amount but i could kick myself. I did ask them if they could give me the old rate as i had been sent literature out at a time when the other rate was applicable. They could not do this as it was not an illustration i received. If it had been they would have honoured it for 28 days. Anyway my application is on it's way so i will send it straight back this time with no messing about.

P.s my mortgage payments will be less than they are now, but i think it's the money saver in me that is miffed not to have saved even more.

TangentMan

Fixed rates are derived from "swap rates".

Swap rates have been on the up recently. But, equally, they can always come down.

meanmachine_2

Indeed. This week they nudged down a bit, thanks to soft data from the US and the UK.

It's likely - but not a given - that the base rate *will* rise. But markets were already pricing in a second rise. That looks a smidge less likely at the moment so swap rates have been shaved a touch.

If you're a risk taker, you could go for a variable and hope that the rise in rates is limited to a quarter percent.

clarew

my fixed rate is up in august, how soon should i be looking at deals available? Haven't had to remortgage before, so was wondering how long the process takes, and how soon you can snap up a deal. (ie:with rates advertised now, can i arrange it to commence in august, or do you get the rates as published then?)

-i am sad as our rate was around 4%, so is set to increase big time, (and on a 170k mortgage, that is a noticable increase!) Any suggestions on a cheap 3/5 deal fixed gratefully received. (am currently with halifax, and am wondering how flexible they are in negiotiating rates in order to keep your business?-otherwise it may be over to nationwide for us)

herbiesjp

clarew wrote:

my fixed rate is up in august, how soon should i be looking at deals available? Haven't had to remortgage before, so was wondering how long the process takes, and how soon you can snap up a deal. (ie:with rates advertised now, can i arrange it to commence in august, or do you get the rates as published then?)

-i am sad as our rate was around 4%, so is set to increase big time, (and on a 170k mortgage, that is a noticable increase!) Any suggestions on a cheap 3/5 deal fixed gratefully received. (am currently with halifax, and am wondering how flexible they are in negiotiating rates in order to keep your business?-otherwise it may be over to nationwide for us)

I would suggest starting to look know for any deals - if the deals are fee free or can have arranbgement fees added to the loan - apply now and add them to the loan.

If rates have gone up, you have secured yourself a cheaper product. If rates go down, you could look at other deals, as in effect you have not spent anything on the first re-mortgage deal

Either way I would recommend having a word with a whole of market adviser in order to find the best deal for you.

HTH

TangentMan

The big lenders won't negotiate on rate. They will have a set of products for retention if you don't like them then this isn't a haggling scenario since it isn't in their interest to burn their profit for one off cases - the cost is just too high and the benefit isn't there for a loan of £170k.