'If you want to fix your mortgage soon, do it sooner' blog discussion

Former_MSE_Penelope

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "If you want to fix your mortgage soon, do it sooner" Blog.

Please click 'post reply' to discuss below.

roberts516

Hi All,
My Mortgage was fixed but last year it ended. I decided to keep at the variable rate which saved me over £100 per month. It seemed good at the time but now I realise that it was a big mistake. I think rates by the end of the year will go up but now I have debts and my credit rating is trashed my mortgage company will not allow me to fix my mortgage rate because of this.Im working hard to pay my debts of paid nearly £3,000 in 6 months but feel this is all pointless because I will loose my house if interest rates rise.Its looking pretty gloomy for me in the future !

WidowTwanky_2

My 'problem' seems tiny compared to the previous poster, and Robert, fingers are crossed for you.
I've been thinking for a while about fixing and was really interested in First Direct's current offer regarding swapping to them... However, the deadline is really looming on that, 31st January...Phoned them today but didn't have my incomings and outgoings to hand so tried to book a callback with an advisor but none are available until the 26th!!
To avoid the hassle of swapping lenders I think I'll see what my current lender, Santander, can offer me. I owe 16,000 pounds and have three years left on my mortgage. I want to see if I can extend my mortgage to 5 years so I'm not paying out so much per month as I need to do the place up, and fix the rate at the same time. Wish me luck!

Gorgeous_George

roberts516

I wouldn't worry about something that may well not happen. Reversing quantitative easing should be the first thing that the Bank of England does if they want to curb inflation. Despite the hot air from the experts and the ConDems I don't think that they want to curb inflation.

Why does giving more money to savers while reducing the money that borrowers have at their disposal reduce inflation? Raising rates would destroy any hope of recovery IMHO. If they want to reduce money supply, reverse QE and higher taxes for those who can afford them would seem to be a fairer way to go.

IF the BofE base rate rose to say 3%, SVRs may not change much at all. After all, they haven't fallen much since rates went below 3%.

The very last thing that even the ConDems would want is mass repossessions and hugely increased toxic debt for the banks. Another bailout is highly unlikely and the government must avoid forcing banks into insolvency.

Set yourself a plan to fix your credit score as fast as you can and move to a fixed rate when possible (for the security). But do not worry about things that you cannot change.

GG

roberts516

Hi Gorgeous George,
Thinking about it your right , I can see interest rates going up but slowly .Big increases yes will kerb inflation but the consequences are major repossessions. I lost my house in the 80,s when interest rates were 15% , I basically handed the keys in. I do not want to return to that as many others. So thanks for your advise and calming me down .

ashtonwood

There are more houses in the market than people are interested to buy. So hopefully the price will decrease.

leepie

I'm wondering if anyone can help me, I have a slightly different problem and don't know whether to fix or not!

I have a repayment mortgage, currently on a tracker 2% above the base rate (so 2.5%). There is only one fixed rate I can get without paying extortionate fees, otherwise I can get any number of 2 year fixes.

The mortgage advisor is advising me to take the 2 year rather than the 3 year fixed rate, his reasoning being that if I want to fix again at the end, I'll get a better rate after 2 years than after 3, as the rates will continue to rise so the rates for FRM will be more expensive.

Which leads me to my question, should I bother with the 2 year fix in the meantime or just continue with my tracker?

Each quarter point rise will only put about £10 onto my monthly payments, and staying with the tracker means I'll not be tied in (no early repayment fees), but I keep on hearing that if you're on a tracker you should fix now, so should I?