Buying out of a mortgage

MrMajic · 28 March 2013 at 3:04PM

Hi all, I'm just about to buy out of a £362k mortgage at 4.59% (it's in the last year of that rate) to move to a 1.79% fix and was wondering on opinions as to whether or not a rate of 1.79% is likely to be bettered in the (very) near future. LTV is just under 60%, the borrowing is on the edge of affordability but I could manage with a new mortgage of £340k or so.

Thanks in advance.

Crashandburn · 28 March 2013 at 3:13PM

It has taking a very long time for rates to get anywhere near 1.79%. Historically, fixed rates were always approximately 1% above tracker rates which would then hover close to the Bank of England rate.

Using this logic and adding 1% to the current Bank of England rate, then your 1.79% deal is not that far off

Crashandburn · 28 March 2013 at 5:06PM

Interesting video. Seems the family were very knowledgeable about the legal process. Shame they didn't apply the same thoroughness in reading their mortgage offer more closely ie the bit about making payments.