90% of all UK mortgages are on a variable rate

sabretoothtigger

They dont want to help sterling really. Apart from trade they arent bothered. USA has low rates so as they do most trade with us, we copy them

IveSeenTheLight

Pimperne1 wrote: »

I don't often believe these surveys but if this one is correct then there will be a lot of people happy if mortgage rates do stay low:


http://www.mortgagerates123.co.uk/mortgage_news_blog/2011/03/09/uk-has-more-variable-rate-mortgages-than-fixed-mortgages/

There are some stonking fixed rate deals out there but I guess some people would have trouble passing the affordability test if there house value has crashed by 10% since they bought it (although the numbers of those must be very few).

I'm on a variable. Far better than the fised rates I could get and I have substantial equity.

Why fix at this time when I am benefitting so much by overpaying at the lower rate?

sabretoothtigger

If you are likely to clear the debt in less then five years I would agree. For people just starting out a fixed term it could be the best thing they ever do finance wise, as fixing at five percent interest with inflation at over five percent maybe for a decade will be like gaining the money for free.

They could even make a profit overall just like speculators last decade, there is a small risk variable will always be better but generally you can expect politicians to take the easy choice of inflation

I would fix for 10 years not five as that may be too short for the situation to vary wildly to the opposites of now

grizzly1911

sabretoothtigger wrote: »

For people just starting out a fixed term it could be the best thing they ever do finance wise,

I would fix for 10 years not five as that may be too short for the situation to vary wildly to the opposites of now

I agree with you that fixing helps people budget. The upfront and potential exit fees may not be in their best ineterest though depending on what they want to do in life.

In the time that we had a mortgage fixing wouldn't have made much difference over variable. The big thing that did make adifference though was not constantly remortgaging for all and sundry along the way.

Cleaver

nearlynew wrote: »

Then you'll become a parasite.

Don't you realise it's your duty to borrow as much money as you can for as long as you can?

This concept of either being a 'parasite' or someone who borrows to the hilt is an example of the extermity thinking on this site. During most normal people's lives they will have a mixture of managable debt, savings and investments. After we have the mortgage paid off we may move again, we may not. We might borrow to set up a business, we may not. Life isn't really about avoiding debt it all costs or borrowing to the hilt, and most people know that.

grizzly1911

nearlynew wrote: »

Then you'll become a parasite.

Don't you realise it's your duty to borrow as much money as you can for as long as you can?

I thought you were being ironic at first.

Why?