where are 5 year fixes going?

fraser

YBS have a 3.99% 5 year fix and a 4.09% offset five yr fix, these seem to be the market leading products at 75% LTV

is there going to be more competition coming along to challenge that? or are we going to see an upward trend?

there are lower fixes (HSBC) but at lower LTV's

thanks

[Deleted User]

I would suspect they may get a little cheaper but not much. But they may become better value. If you share the view that rates won't go too far north in the next year, then if you take the fixed rate now, you may only get 2-3 years benefit of being fixed lower than an SVR. Whereas if you can still get a 4% 5 year fix in 12 months time, it would give you a greater benefit as rates may be rising during more of the fixed period.

But it very much depends on your view of where rates are going.

Thrugelmir

Rates ultimately are only going one way.

To obtain the best deals, not just now but in the future, you need to improve your LTV.

JimmyTheWig

Deleted_User wrote: »

If you share the view that rates won't go too far north in the next year, then if you take the fixed rate now, you may only get 2-3 years benefit of being fixed lower than an SVR. Whereas if you can still get a 4% 5 year fix in 12 months time, it would give you a greater benefit as rates may be rising during more of the fixed period.

But if the banks share that view, too, then yo won't be able to get a 4% fix in 12 months time...?
[P.S. Am loving the username, zx81!]

fraser

JimmyTheWig wrote: »

But if the banks share that view, too, then yo won't be able to get a 4% fix in 12 months time...?

this was my thinking also, half tempted to pay an application fee and see where things are before the deal / reservation expires

[Deleted User]

JimmyTheWig wrote: »

But if the banks share that view, too, then yo won't be able to get a 4% fix in 12 months time...?
[P.S. Am loving the username, zx81!]

Very true. You need to time if BEFORE rates rise and BEFORE the banks raise the price. Once rates start moving, it's too late. Apart from that, it's a foolproof strategy.

PS If you like/recognise the user name, then unless you've been reading your Dad's old computer magazines, you've given away the fact you're very much the wrong side of 30! Or worse...!

Thrugelmir

fraser wrote: »

this was my thinking also, half tempted to pay an application fee and see where things are before the deal / reservation expires

At the most you'll have 6 months to reserve the deal and utilise it. Normally completion also has to take place within the 6 month time window.

So in reality you may have only a 2-3 month window.

dimbo61

I am with YBS on a 5 year offset fix at a higher rate than you can now get so I would give some serious consideration to the offset deal and save as much as possible in the offset over the next 5 years.

opinions4u

Two key forces.

1) Swap rates ... increasing marginally this month - upward pressure on prices.

2) Availability of wholesale funding to lenders ... if this increases, and there are signs of it happening, that could lead to a downward pressure on prices.

An increase in base rate may not see a corresponding increase in mortgage fixed rates as there are competing pressures.

mitchaa

fraser wrote: »

YBS have a 3.99% 5 year fix and a 4.09% offset five yr fix, these seem to be the market leading products at 75% LTV

is there going to be more competition coming along to challenge that? or are we going to see an upward trend?

there are lower fixes (HSBC) but at lower LTV's

thanks

Where are you finding this?

3.94% with 60% LTV

http://www.ybs.co.uk/mortgages/current_products/products/5yr_fix_03.html

4.19% with 75% LTV

http://www.ybs.co.uk/mortgages/current_products/products/5yr_fix_01.html

fraser

mitchaa wrote: »

Where are you finding this?

3.94% with 60% LTV

http://www.ybs.co.uk/mortgages/current_products/products/5yr_fix_03.html

4.19% with 75% LTV

http://www.ybs.co.uk/mortgages/current_products/products/5yr_fix_01.html

they just changed overnight! well guess that answers the question then, these rates are shifting higher

FD's have also done the same