Best 90% LTV 5 yr fix on the market?

beachie

Saw the 75% thread and found it very useful however my mortgage is currently around 90% LTV so thought I would start a new thread for us people who have not got so far at present.

I have started to look around at fixed rates and believe that a 5 year fix will be the best. However, looking at the current news an increase in the base rate could be over a year away.

I am very confused by it all.

Currently £90499 of the original mortgage taken out for 97000 in May 2007. As from the last couple of months I am paying nearly £150 month overpayments.

Wish I had paid more over the years, but I was given it at 5.5 times my income back then! :eek:

beachie

Some of the YBS deals are looking reasonably good, but don't think it is worth fixing yet?

http://www.ybs.co.uk/mortgages/current_products/index.html?customerType=newR&mortgageType=fixed&depositMin=10&x=23&y=16#newR

First_Time_Buyer_Guru

Hi beachie.

It's often that those with smaller deposits can get forgotten about! There are certainly more 90% mortgages on the market than say a year ago. If you're after the security of a fixed deal then go for it...that aspect is worth its weight in gold. And make sure you fix for as long as possible to see out the benefits of a fixed deal. Avoid 2 year fixes.

I wish you good luck in your research, but i'd like to leave you with one consideration. If you fix for 5 years at say 6% (which is where 90% LTV 5 year fixes are hovering around), then don't forget to factor in that the base rate will need to rise by about 1 - 1.5% before you've made the right choice (assuming a tracker of around 3.5 - 5% above the base rate. It all depends on how long you believe it will be before this happens.

Interest rates have only one way to go, but when it does rise, the Bank of England is going to have to do it slowly.

Hope this helps a little.

beachie

Thank you very much for taking the time to reply.

I think I am better sticking with the variable for the moment as I think things are improving all the time in regards to 90% LTV mortgages and at the rate interest rates are going a rise won't be seen for a while.

Will buckle down for the next 6/12 months and pay off as much of the mortgage as I can.