Help Please Wise Ones - Remortgaged for 7 yrs at 4%

the4bennetts

Hi all

Please may I ask for your advice as I am starting to worry I have made a bad decision.

We remortgaged 6 months ago with Abbey for 7 years on a fixed 4%. This seemed a safe option and the payments stayed as they were before we did this fix. Our mortgage is £220K and we were sure that the interest rates would increase and we had made a good move.

Everywhere I turn friends are enjoying tracker rates at present and are saving nice amounts monthly. A friend this weekend has just fixed for 2 years at 1.9%!

I am starting to wonder what we have done and if you guys have more of a foresight than I can currently gleam, I would be very very happy to hear your comments.

KR Louise

Cannon_Fodder

I doubt its a "Fix" at 1.9%, unless its for having a tiny LTV and/or being an existing customer on something even better.

Patience. You opted for a Fix for certainty. Would you prefer to be on the slippery slope of trying to time when to change to fix from a tracker?

In a year's time, a deal that is Base Rate +1.5%, sounding great at 2% now, could be 4.5% and rising fast...and as its already too late to find decent sub 5% Fixed deals, they'll be even worse by then.

steve237

7 years at 4% is an exceptionally good rate. I also fixed for 7 years (6 months ago), but mine is at 5.39%. I'm still happy with my decision as I've got a baby due any day now and I'd hate to be worrying about future interest rate rises.

Give it a couple of years and I reckon long term 4% deals will be as rare as rocking horse sh*t. 2 year fix possibly, but def not 7 years!

dwsjarcmcd

I think you have a fantastic deal! You mate probably paid a 2% arrangement fee or something to get that deal and who knows what they will pay at the end.

herbiesjp

Everyone's circumstances are different.

So what might be available or good for one person, might not be for another.

You should just relax in the knowledge that YOU have got a great rate for YOU.

Forget about everyone else, and remember the reason why YOU chose that deal.

Over the next 7 years, you will be very happy when rates are a lot higher than than are at present!

Rather than worry, give yourself a pat on the back

dimbo61

4% fixed for 7 years is a very good deal and gives you and your family long term security now if you can overpay a little each month and try to increase the overpayment every year and you will soon be Mortgage Free!

g_attrill

I agree, 7 years at 4% is good, who knows what will happen in that time, don't worry!

withabix

I've got just over 2 years left to go at 5.99% fixed on a 5 year deal which averaged 5.19% (1 @ 1.99%, 4 @ 5.99%).

My mortgage is only 50k odd, so I'm not too bothered. Buy-out fees would outweigh a better deal.

Some you win, some you lose.

7 years fixed at 4% is good.

the4bennetts

Thank you so much guys. I feel much happier now. Thank you again :T