My Mortgage - Rates

plasmarb

Morning

I've just completed (move today:T) and now have 5 years fixed at 2.75 % with Natwest.

Now I read here:
https://www.google.co.uk/amp/s/amp.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates?client=safari#

Rates have dropped to 1% and possibly .25% so it seems to me i've realy missed the boat when getting my mortgage? I only had the meeting late June!

amnblog

You have taken a fixed rate which will not be affected by changes in base rates.

Presumably you did this for the security of knowing what you are paying in the early years.

You got 'on a boat', many are available and they all leave at different times on different terms.

I don't see 2.75% guaranteed for 5 years as a poor offering.

csgohan4

No-one has a crystal ball and that is the risk you take with long term fixes, I am sure you wouldn't be willing to pay more if interest rates went up.


My rate is now 0.4% worse off than if I applied today, that's life.

AnotherJoe

plasmarb wrote: »

Morning

I've just completed (move today:T) and now have 5 years fixed at 2.75 % with Natwest.

Now I read here:
https://www.google.co.uk/amp/s/amp.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates?client=safari#

Rates have dropped to 1% and possibly .25% so it seems to me i've realy missed the boat when getting my mortgage? I only had the meeting late June!

The point of a long fixed rate is much more about certainty than getting a low rate, indeed it's quite likely that over the period of the fix you will have a slightly higher rate on average than if you'd just gone with shorter term fixes. What you did was insure against being caught out by a big jump,in rates and that still apples, though the odds of that happening are pretty much zero now.

csgohan4

AnotherJoe wrote: »

The point of a long fixed rate is much more about certainty than getting a low rate, indeed it's quite likely that over the period of the fix you will have a slightly higher rate on average than if you'd just gone with shorter term fixes. What you did was insure against being caught out by a big jump,in rates and that still apples, though the odds of that happening are pretty much zero now.

Not to mention you don't have the hassle of going through all the pain in applying for remortgage every 2 years and the fees that comes with it like Solicitor's and product fees e.t.c

Thrugelmir

plasmarb wrote: »

Rates have dropped to 1% and possibly .25% so it seems to me i've realy missed the boat when getting my mortgage? I only had the meeting late June!

Lenders won't be offering mortgages at those interest rate levels. Commercially unviable.

Jimmy93

That rate doesn't sound bad for a 5 year fix to me - that's five years of knowing exactly where you stand on your finances, and not having to worry about it. We're thinking about doing something similar in our upcoming remortgage.

Even if they do come down it's not going to be by much, surely?

Besides, sounds like it's all done now. If I were you I'd just enjoy my new house, crack open a bottle of something and get settled in. No point second guessing yourself!

plasmarb

Thanks all

davemorton

Wish mine was that low.
I bought just before the crash, lost out there.
When I came to re-mortgage, they totally undervalued the house (by about 30%) so the rate I could get was again carp (about 5%) another 3 years to go until I can try again and get one of these low % rates everyone else seems to have. *sigh*