3 more years of 0.5% interest rates

CLAPTON

padington wrote: »

Still none the wiser if I should fix my mortgage for 5 or 10 years or get the lowest tart rate available. Anyone prepared to answer that in a quick easy to understand, balls on the line, laymen kind of way without answering a question with more questions ?

yes go for a 10 year fix

Deekaay

CLAPTON wrote: »

yes go for a 10 year fix

Really?
Can I ask why?
My fixed rate is due to end and I was wondering which way to go.

Best

chucky

Graham_Devon wrote: »

Funny you should bring this up actually.

Only we have precisely none of the threads you talk of active on the first page of the forums at this moment in time.

Yet we have no less than four (3 from Hamish + this one) talking of how base rates are going to stay low and even if they do rise, nothing will happen on the first page alone.

You appear to be constructing a very large straw man.

It is funny that I mention it because you didn't get it yet again [again].

Hamish threads would be about rates not going up but the 3,867 threads that the usual suspects would start would be the usual doom mongering inaccurate threads claiming rates were about to go up.

Do you understand or should I explain it in crayon for you?

CLAPTON

rates will remain low for the next 2/3/4 years

then all that money we have printed will start to cause massive inflation which will be tackled by increasing interest rates

Graham_Devon

chucky wrote: »

Do you understand or should I explain it in crayon for you?

I thought you just did to be fair.

Thrugelmir

CLAPTON wrote: »

then all that money we have printed will start to cause massive inflation which will be tackled by increasing interest rates

Appears that massive wage inflation is not a major issue. Down to the fact that UK productivity shows no sign of improving (still at 2005 levels). Until people work harder to generate weath then further QE may well be a possibility.

CLAPTON

Thrugelmir wrote: »

Appears that massive wage inflation is not a major issue. Down to the fact that UK productivity shows no sign of improving (still at 2005 levels). Until people work harder to generate weath then further QE may well be a possibility.

productivity can indeed be improved by sacking a lot of workers and making the others work harder but this won't make us any richer.


there is no real evidence that sales are restricted by our ability to produce.

michaels

I had the choice of a 5 year fix at 2.5%% or 10 years at 4%. If the amount outstanding remains the same then in 5 years time if I can fix at 5.5% or less for 5 years then the two short fixes will work out cheaper.

Obviously with the 5 year fix I will also have the option to pay down the borrowings after 5 years if rates have become too expensive whereas with the 10 year I woud not have that flexibility.

michaels

Thrugelmir wrote: »

Appears that massive wage inflation is not a major issue. Down to the fact that UK productivity shows no sign of improving (still at 2005 levels). Until people work harder to generate weath then further QE may well be a possibility.

May be people are working just as hard as they did in 2005 but the value of their output (in banking, law, accountancy, consultancy, hedge fund managment) is now judged to be much lower?

JimmyTheWig

padington wrote: »

Still none the wiser if I should fix my mortgage for 5 or 10 years or get the lowest tart rate available. Anyone prepared to answer that in a quick easy to understand, balls on the line, laymen kind of way without answering a question with more questions ?

It's impossible to answer without knowing your situation.
If you get a 5 year fix you will probably be paying more in the first few years than a low variable rate but will then probably be paying less in the last few years of the fix than if you opt for variable now.

How much of the mortgage can you pay off in the first 2 or 3 years? If you can pay off a large percentage of it then go variable as the higher rate in a few years time won't matter so much.

Personally I've just gone for a 5 year fix.