5-10yr fixed deals, good idea given current interest/BOE rate?

andrewmp

fewcloudy wrote: »

Wow! It would be interesting to know how long you remained in it before paying to get out of that deal, and how much it cost to buy and to get out of it.


fc

Took it out in 2008 (base rate was only 0.5% lower than the fix then), remained in until 2015. Buy out was about £2k from memory.

New deal 2.6% over 5 years.

kaylajane

fewcloudy wrote: »

Uncertain times? In my lifetime, these times have been the most 'certain' I've ever seen.


Seems very unlikely they will rise in next few years, but if they do then everything points to it being done very slowly.


fc

May be certain for you, but the EU referendum makes things uncertain for me (with my job etc). There's no harm in an extra bit of security. If you know your job is secure and are happy to stay on a tracker then go for it. Its all personal preference.

fewcloudy

kaylajane wrote: »

May be certain for you, but the EU referendum makes things uncertain for me (with my job etc). There's no harm in an extra bit of security. If you know your job is secure and are happy to stay on a tracker then go for it. Its all personal preference.

Apologies, I didn't mean certain in terms of my personal circumstances, but was meaning in terms of interest rates. It used to rise and fall (hence uncertainty), but for a long time now it has remained the same.


I'd have thought that if you have some job uncertainty due to the EU referendum, then you have it regardless of which sort of mortgage you are on.


fc

kaylajane

Yes it is. But at least we no that if worst came to the worst we can afford our mortgage on one salary, as our fix is cheaper then the tracker we were on.

getmore4less

kaylajane wrote: »

I just got a 2yr fix at 1.79%. 69% L2V. Fixed as it was less then the boe+1.34% tracker we had. It's nice having the security im these uncertain times

If that was a lifetime tracker you have given up a decent mortgage for a tiny saving and very short term security.

If you circumstances change and can't get a new deal or rates start moving up new offers will likely be at a higher margin over base.

kaylajane

getmore4less wrote: »

If that was a lifetime tracker you have given up a decent mortgage for a tiny saving and very short term security.

If you circumstances change and can't get a new deal or rates start moving up new offers will likely be at a higher margin over base.

It was a 2 yr tracker reverting to 3.99%. So I'm effectively in the same situation as before, just paying slightly less. There were no product fees either.