First Direct Pull Low Fixed Rate - Does This Mean Rate Rise Is Coming

bunty109

We're 6 months off being able to end our mortgage tomorrow and I was banking on applying for the FD 3.89%! 4.29% looks pretty good (HSBC rate is better but you can't overpay as much and I need to look into what costs I would save by staying with FD)

Woby_Tide

Bear in mind that banks just set aside tranches of money for their mortgage deals. When they allocate it all, they pull the deal. Everytime a bank pulls a decent deal we get the same thread. It's almost 2 years since we took an A&L 3.99 5 year fix. When that was pulled it was seen as the end of the cheap deals. It's been proved time and again it wasn't.

Gorgeous_George

If interest rates could be raised, the ConDems would have done so by now. The fact that they haven't should tell you just how dire the situation really is.

The truth is that you don't need to get the BEST rate. Securing a reasonable rate should be good enough and over the course of your mortgage life (30 or 40 years typically) things will balance out probably.

GG

Thrugelmir

Gorgeous_George wrote: »

If interest rates could be raised, the ConDems would have done so by now. The fact that they haven't should tell you just how dire the situation really is.

Five year swap rates have moved significantly. Up .8% since last October.

The danger is beneath the water not above.

alanshave

chuckalicious wrote: »

The next best deal is a 75% LTV at 4.29%!

Interestingly I can now only see a 5 year deal (75% LTV) at 4.69%.

Have the rates shifted again or am I looking in the wrong place?

johnbhoy10

alanshave wrote: »

Interestingly I can now only see a 5 year deal (75% LTV) at 4.69%.

Have the rates shifted again or am I looking in the wrong place?

No-i think you're right. The 4.29% is a 65% LTV.

Arghhh! Decisions decisions!

Not sure whether to book this 4.29% for 5 years or the 3.39% for 2 years. Personal circumstances changing in next 3 months for so a big decision for us. Maybe flip a coin.

Will 'only' cost a booking fee for us of £99 so whatever i choose i'll probably be on in early July saying what a waste of cash that was.


This question of how much can you handle if rates rise is doing my nut in.

leni

we're always gone for a discount tracker but have decided to go fixed as we're starting our family this year and my job looks uncertain. Rang FD yesterday and they are offering no valuation fees and no legal fees in Jan if you get the paperwork back to them by 14th Feb. But the first appointment (as their so busy) was 10th Feb - I managed to get one at 1pm yesterday though and have until Tuesday to book the 4.29% deal.

We've paid up to 6.25% on a tracker so we're happy with a 5 yr fixed at 4.29%