why are fixed rates so high?

Poppy_Kennedy

Hi everyone

Just wondered if you could advise me.

I am looked for a fixed rate for 5 years. My LTV is around 85% (according to my bank)

Having looked around I cannot seem to get a fixed rate any less than 6%.

I can get a 2 year fxed for slightly lower, but in my opinion, I do not feel that short-term fixed rates are worth it, correct me if I am wrong.

Would I be a mug to get a fixed rate for 6% or shall I hold off and stay on SVR?? I have been looking at fixed rates and they seem to be getting higher, not lower.

Many thanks

suisidevw

What's the SVR now?

Peelerfart

IMO - stay on SVR.

Fixed rates are so high because people seem to want the security they offer.A premium for "peace of mind".

I can't imagine how much money is spent so that people can have this elusive "peace of mind", but I do wonder if anyone loses sleep over being able to afford all this "peace of mind".

I personally can't afford it, that's why I'm not paying 6% on my tracker

Poppy_Kennedy

Thanks – the SVR I am on now isn’t that low, im not actually saving anything more than when I was on my last fixed rate

Having looked on the net, tracker mortgages for 85% LTV are also pretty high…

AHHHHH

justjohn

just got a fixed rate of 2.79 for 2 years from NR(actualy a tracker)

Peelerfart

justjohn wrote: »

just got a fixed rate of 2.79 for 2 years from NR(actualy a tracker)

Is it fixed or is it a tracker ?

justjohn

Peelerfart wrote: »

Is it fixed or is it a tracker ?

Its a fixed rate tracker... x amount above base rate

justjohn

NR fixed was 3.89% for 2 years

LufbraDan

Justjohn, both of those products are for a max LTV of 70%, so for the original poster these products are no relevant.

For Poppy, NR fixed for 5 years is 6.99% for a max LTV of 85%

Conrad

Lender don't particularly want borrowings above 75% ltv hence the seemingly high rates. The regulator places considerable capital adequacy mandates on lending over 75% meaning the more 75%+ lending a lender does, the less it can lend!

As ever the Govt and it's regulator have not got a clue when it comes to the real world, hence why poor old poppy has to foot the bill.

Next time your hear the saintly Vince Cable giving fourth on the matter ofending, keep in mind the real cost to real people of all this 'sensible lending'.

justjohn

sorry..............