MSE News: Ditch your standard mortgage for a five-year fix?

"Millions of mortgage holders have been hit with a huge rise in repayments, while new deal costs are down ..."

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  • Mobeer
    Mobeer Forumite Posts: 1,852
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    "Up to 60% LTV ... enjoy lower monthly payments"

    I think this should be warning that at low LTV and hence likely low mortgage size, the fees involved make the cheap fixes undesirable. Also the "lower monthly payments" might be higher than a non-fix.
  • alinwales
    alinwales Forumite Posts: 324
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    I found that rates were much better in April.. so the horse has already bolted. I started looking at fixing at around the same time that Halifax announced their SVR hike. With an 85% LTV, I was able to get a 3.99 5yr fix with no fees and no other costs. Had I waited until now, I wouldn't have gotten anything close.
  • ACG
    ACG Forumite Posts: 23,368
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    The fees sometimes still make it cheaper, usually for the more expensive properties that have mortgages below 60% LTV.

    I think you will see further cuts in the next month or 2 once more lenders make use of the govts cheap money.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Caddyman
    Caddyman Forumite Posts: 342
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    Sticking with my Nationwide mortgage and its BMR of 2.5 percent.

    I was originally on a fixed rate deal for three years which ended two years ago, but I still had to suffer one year of being on a 5.25 percent rate. When the deal ended, my mortgage dropped 100 quid a month and I ended up on the 2.5 percent rate. Got a letter trying to pursuade me to go onto a different deal, essentially more expensive. Ah, no, don't think so. Think I'll be staying put for the forseeable future.
  • Jesthar
    Jesthar Forumite Posts: 1,450 Forumite
    Caddyman wrote: »
    Sticking with my Nationwide mortgage and its BMR of 2.5 percent.

    I was originally on a fixed rate deal for three years which ended two years ago, but I still had to suffer one year of being on a 5.25 percent rate. When the deal ended, my mortgage dropped 100 quid a month and I ended up on the 2.5 percent rate. Got a letter trying to pursuade me to go onto a different deal, essentially more expensive. Ah, no, don't think so. Think I'll be staying put for the forseeable future.
    Had exactly the same thing when my five year fix with Nationwide was coming to an end and I was due to go onto the (much lower) BMR, a whole stream of letters practically begging me to take out another deal. No chane - all were more expensive, and to boot I'd have wound up on the uncapped SVR afterwards. Absolute no-brainer to stay on the BVR, especially when the new lower monthy payment means I can afford to double my overpayments :D
    Never underestimate the power of the techno-geek... ;)
  • Pincher
    Pincher Posts: 6,554 Forumite
    How much is it to hire a hitman? By my calculation, my lender would be thousands of pounds bettter off a year if THEY got their money back and lend it out on SVR.

    Locks are no good against Ninja assasins.
  • blizeH
    blizeH Forumite Posts: 1,358
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    I'm currently with C&G (Lloyds) and they have an incredibly low SVR compared to the majority of other companies judging by that table... would it be a fair assumption that they too will hike their prices soon? Not sure whether to put my money into savings right now, or towards the mortgage... if it stays at 2.5% then savings seems the best option, but I'll really regret getting tied into anything if my mortgage goes up to 4%+ - thanks
  • blizeH
    blizeH Forumite Posts: 1,358
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    blizeH wrote: »
    I'm currently with C&G (Lloyds) and they have an incredibly low SVR compared to the majority of other companies judging by that table... would it be a fair assumption that they too will hike their prices soon? Not sure whether to put my money into savings right now, or towards the mortgage... if it stays at 2.5% then savings seems the best option, but I'll really regret getting tied into anything if my mortgage goes up to 4%+ - thanks
    Quick bump - does anyone think the C&G SVR will go up soon? Thank you :)
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