Should i still apply for my mortgage or wait to see what happens with interest rates?

economic

AlexMac wrote: »

I'm no expert, (and hopefully some will reply) but if you were happy with the fix yesterday, I'd just go through with it even though the BoE base rate dropped 0.25% today.

Nationwide are a really good lender too; I was pleasantly surprised when they wrote to me last month to say my 2.75%, 5-year fix on one of my two loans with them was coming to an end ...

...and, because I was an existing customer, offered me a raft of alternatives including some really low trackers. And several of them were arrangement fee free! So I switched to one which reduced my monthly repayments by a third... and following todays MPC decison, that will go down a bit more...

So grabbit!

they would send you a letter as they want your money for their profits. why are they a good lender? seem pretty average to me although with very poor customer service.

AnotherJoe

lettucekl wrote: »

Im a FTB aswell and with the news today with the rate dropping to 0.25% am i right in think anyone getting a fixed rate now is mad and variable is the absolute best way to go?. I mean the rate isnt going to rise within the next 2-3 years thats for sure and its more than like to fall lower that 0.25% in that time frame!. So surely a 2 or 3 year variable rate is the best option with today's news??

I think you are right, that anything along the lines of 5 year or less fixed is a bad decision. Reason being, looking at how much you'd save over the first couple of years compared to a fix will more than compensate for any rises later on since they will be equally gradual and equally telegraphed in advance so if a rise was on the cards in say 4 years time you could take a fix at that point.

Also, Brexit pays a part here. It's in the UKs interest to have a low exchange rate and that situation will last for the whole time we are negotiating our exits, which will be a five year plus project, hence odds of a increase within the net 3 or so years, very very low. So why take a fix, it will just cost you.