5 or 10 year fixed rate mortgages

steveM1978

Yes socks, i did the same thing, not as long as 10 years but i took a fixed 6.13% about 2 and a half years ago, to know then what i know now.....

However my repayment wont change and i have another 2 and a half years fixed, i was considering the getout fee but that was extortionate! i think mr fish has given some solid advice, you ned to get the calc out and do some sums! on another note i saw another fixed rate mortgage at £570 a month decrease to £150 a month at the end of the fixed term. (interest only)

RenovationMan

I've just arranged a tracker mortgage at BoE +2%, which is in place for 3 years from tomorrow (we move into our new house tomorrow). It could turn out badly if BoE rates go up quickly, but I'm gambling on a gradual rise over the next few years, hedged by me making significant overpayments onto the mortgage. I did look at fixed rate mortgages but I asked around and just couldnt find anyone who actually benefited financially from them, other than knowing how much you have outgoing each month, which I'd frankly give up if it cost me an extra few hundred quid each month for the pleasure of it. The odds seem to be heavily in favour of the lender with fixed rate mortgages.

pingu2209

Thank you so much for your replies. I know that nobody knows what will happen with interest rates. Thank you Mr Fishbulb for your calculations, that is very useful.

The house is worth would just about reach £500k but not over it, the mortgage is £222. However, we can't overpay because any extra each month is saved to do the place up - needs rewiring, plumbing, kitchen and bathrooms etc.

I think I will wait for the first .25% rate rise and reconsider then.

steveM1978

mr_fishbulb wrote: »

I call bow locks. Care to share your source? Or perhaps you could go into the reasoning?

beecher2 wrote: »

How on earth can you say this? It is just a guess, and not a very good one in my opinion. I can't see base rates staying at 0.5% for a further 5 years.

Much depends on the OP's LTV, attitude to risk, ability to overpay, and much more. I think they should investigate which products they'd be eligible for as a first start - the Co-Op's might be appealing if their LTV is good enough.

All of a sudden my advice appears to be accurate. looks like LEADING economic advisors predict the same as my mortgage advisor friend..... next time i hope the OP and others pay attention to all advice and not just some big headed think they know it-alls!
(eat my hat if they go up this week!)
http://www.mortgagestrategy.co.uk/economy/interest-rates-could-stay-on-hold-until-2014/1015747.article plus it was on sky news this morning

geoffky

steveM1978 wrote: »

All of a sudden my advice appears to be accurate. looks like LEADING economic advisors predict the same as my mortgage advisor friend..... next time i hope the OP and others pay attention to all advice and not just some big headed think they know it-alls!
(eat my hat if they go up this week!)
http://www.mortgagestrategy.co.uk/economy/interest-rates-could-stay-on-hold-until-2014/1015747.article plus it was on sky news this morning

So sorry to disappoint you but

Ros Altmann, a governor of the London School of Economics

I would expect interest rates to go up, the only question is when.



http://www.telegraph.co.uk/finance/personalfinance/borrowing/7863303/When-will-interest-rates-rise.html

Cannon_Fodder

ask any 2 economists for an opinion and you will get 3 answers...

steveM1978

Sorry to dig up old posts..... but.... well you know what i am going to say... still 0.5!

Thrugelmir

steveM1978 wrote: »

Sorry to dig up old posts..... but.... well you know what i am going to say... still 0.5!

and do you still hold these views?

I have it on fairly good grounds that the rates will not be changing until around 2015. then we can expect to see around 1% per year increase. this is of course my opinion, a typical new mortage now will be around the 4.5% figure...

My advice..... wait till the first quarter % rise then look for a fixed term deal.