Local government officer who is a FTB and confused

mavala25

Hi there

I have found a property, got the formal mortgage application agreed and have been given the choice of 3.64% + BOE 0.5% tracker or 4.79% fixed. These would both be for 2 years.
Now at the current rate the diffrence betwwween the 2 payments would be something like £66.

I understand that a lot of peoples opinions on here that the BOE is unlikely to spike for a while, but I dont know if i want to take the risk for the sake of £66 given as I am a local government officer and whilst no specific rumours or threats have been made about my job security in the oncoming cuts to local government budget, theres a chance I could be affected.


Anyone have any thoughts on what i should do?

I looked at payment protection yesterday and did a brief applicatiion (i think for i-protect) and I was declined cos I am a local government officer:eek:! They obviously see as now as very risky.

If Im made redundant, im made redundant whether im on a tracker or fixed, but I suppose my cautious mind is saying 'well at least u will always now what ur monthly outgoings are if ur on a fixed and u can budget accordingly'.

I'd love to know peoples thoughts and what they would do.

beecher2

I'd be going for a longer fix - 2 years is far too short in my opinion. Get a 5 year fix and overpay as much as you can - make sure you're not overstretched and not paying too much for the property.

_Andy_

Would it not be a safer move for you to wait until the end of the year to see how things are following the spending review etc.?
As someone who also works in LG there's no way I would be buying/moving at the moment!

mavala25

Hi there

beecher2 I did ask about getting a 5 year fix but it isnt something i can get.

In light of that u think out of the options available I should fix for 2 years?

With regard to not buying now if your in LG, i appreciate your point of view, but you could put your whole life on hold because of 'what ifs'. I dont beleive in letting what is a possibility rule my life. I think if you are prepared for any events (and i dodnt just mean redundancy) then you'll be ok.
But any as per my original post, this is my situation now and thats what Id appreciate the advice on, not advice on whether I should buy a house or not.

But thanks for the input, its all good.

mavala25

is there anyone who can help me with my original question?

_Andy_

What are the fees on each?

mavala25

both in the region of £ 950-£1000. I dont have the key facts document to hand

Spangled

mavala25 wrote: »

I did ask about getting a 5 year fix but it isnt something i can get.

Did they say why? That seems a strange thing for a bank to say!

As Beecher2 says, if you're going to fix then surely a five-year fix is best. Although no one knows exactly when rates will go up, chances are they will be heading north in around two years time - just when you need to remortgage. Far better, IMO, to fix for five years and ride out any IR ups and downs.

Good luck!

mavala25

I really do appreciate people taking the time to reply, i really do but please can someone ask the specific question, fixed or tracker for 2 years in the circumstances i have described.
Please can we not mention the 5 year thing again, its not an option here and something to lenghthy for me to get into as to the whys and why nots.

beecher2

mavala25 wrote: »

Hi there

beecher2 I did ask about getting a 5 year fix but it isnt something i can get.

who did you ask? One specific lender, or your broker? I don't understand why you can't get a 5 year deal but I'd be going to a different broker and asking specifically about 5 year deals.

mavala25

A lender.

Please see my most recent post.

Any advice on my orignal question of what to do with the specific circumstances I have outlined?