Fixed rate mistake

Lennydog

What a ridiculous statement- I was responding to an assertion that I would have been better off not getting a mortgage at all whizh I was explaining I don't believe to be true. Just because things didn't turn out disastrously doesn't mean I can't question advice that cost me 30k. This website is a coven of pompous weapons. Thanks for the help

getmore4less

Lennydog wrote: »

The advisor said it's better to know you afford a fixed payment but it was December 07 and interest rates were just reducing as the crash kicked in and I emailed saying everything I'm reading suggests they are coming down further. The reply was 'true but the tracker rate is still the same rate as the fixed'

Did you need to know the mortgage payment would/could not go up?
How stretched were you at the time?

once you can get a client to agree to that it reduces exposure to any miss selling as they can focus on fixes.


A quick look suggest that fixes were quite close to base rates and trackers were around with very low margins above base.

120% would have limited lender options, how many lenders were offering and considered at that at the time?

Amst

Lennydog wrote: »

What a ridiculous statement- I was responding to an assertion that I would have been better off not getting a mortgage at all whizh I was explaining I don't believe to be true. Just because things didn't turn out disastrously doesn't mean I can't question advice that cost me 30k. This website is a coven of pompous weapons. Thanks for the help

Ok, let me put it this way, you don't have a genuine claim so move on with your life :money:

csgohan4

hindsight is great isn't it, wish I had a crystal ball to predict interest would save a packet


it's everyone else's fault not yours right?

dimbo61

Was the mortgage broker in branch ?
If you have got emails you could always put a complaint in with your lender.
Nothing to lose.
We took out a 5 year fix in 2005 for security as it was a huge mortgage for us at the time.
Completely blown away in 2009 when the boe base rate dropped to 0.5%
No one saw that coming and a few very lucky borrowers had tracker deals at 0.5/1% below base rate !!!

takman

Lennydog wrote: »

No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.

If the mortgage was a stretch to pay and right on the limit of what you could afford then a fixed rate is a good recommendation as you needed to guarantee the payments wouldn't increase making you unable to pay it.

As csgohan4 this actually is a genuine occurrence of hindsight (which is rarely used correctly on this forum!) because if you knew rates would be going down you wouldn't have signed the deal.

Thrugelmir

Lennydog wrote: »

No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.

Fortunately it was an era when 120% mortgages were being granted. How much did you gain from being allowed to consolidate the debt? These days you'd have zero chance of doing so.

Many years ago I once fixed a five year term at over 10%. Only to watch base rate fall. More recently I was fortunate to borrow at 0.35% above bank base. Swings and roundabouts as they say.