What way are mortgage rates going? How long to fix?

MRBE

Fix for 2 years, then fix for 5 is as good an option as any. Who the heck knows - just take a punt.

kinger101

In two years (assuming house prices remain flat-ish), you might be able to switch to 85% LTV. So I'd go for a relatively short fix for now.

Herzlos

kinger101 wrote: »

In two years (assuming house prices remain flat-ish), you might be able to switch to 85% LTV. So I'd go for a relatively short fix for now.

Cracking poinT. I'll run the numbers to see how far away I get to 85% after 2 years.

Conrad

Im on SVR and if I switch to fixed, the SVR reversionaryrate is set a lot higher than my current SVR, so I keep putting off fixing.

You need to balance out that rates may only rise a small amount and work out whether it's worth taking the hit whilst your value goes up that might allow access to lower rates.

90% fixed rates tend to be worthwhile o lay over short periods such as 2 yrs

EDIT I noticed someone else mentions this above.

5557223

kinger101 wrote: »

In two years (assuming house prices remain flat-ish), you might be able to switch to 85% LTV. So I'd go for a relatively short fix for now.

This. And, I would fix for 2 years and if the rates go up, they won't go up as much as the current 5 year fix.

sevenhills

I have just fixed for 10 years. Just got the payment details today. Unfortunately I am still renting my house, the sale is going through in 6 days
Paying rent, and a mortgage, I hope that does last long.

Thrugelmir

ilovehouses wrote: »

I'd bet you were asking why rates would drop further in 2014 too.

No one could forecast that the BOE would provide lenders with funds at 0.5%. Scheme ends early next year. After that the money will start to be repaid. A number of factors will drive interest rates slowly upwards.

killergibbo

padington wrote: »

Come 2019 when we are in the thick of thick Brexit.
With the economy going to hell and investment taking a massive turn away from U.K. PLC there is no way the Bank of England will chose then to raise interest rates.

In the same breath, if Brexit goes ahead, the !!!! will be hitting the fan for years. Expect years and years of low interest rates.

Saying that I fixed for 5 years because 1) the bloody high charges to renew 2) things are so cheap anyway, it makes the 1 in 10 chance I'm wrong on furture cheap or cheaper interest rates worth hedging against 3) Brexit will hopefully never happen.

However I seriously doubt anyone taking a 2 year fix will regret it either.

If things go well and EU offers a form of membership which can cap immigration and we have a refenerdum and we vote to stay in the EU, given the obvious horrific consenquences of leaving, expect rate rises to temper what will become a very hot property market, once again.

brexit is going ahead we are now in the year 2017 and its september, its not june 2016 wake up.

wymondham

CBaker wrote: »

Go for a fix, rates are not going to remain at historically low levels for ever.

Not so sure... The BoE keeeeeppppps on warning rates are going up, but when they have their meeting each month it magically stays the same. Just the discussion about rates going up having the desired effect maybe?

ruperts

I'd fix for the number of years it'll take you to get to 80% LTV, which with a bit of overpayment ought to be about three years I would guess? That would give you the advantage of a lower rate short term, and the ability to offset any rise in the base rate with a lower rate through reduced LTV.