FTB Fixed Rate

bottleandahalf

Hi. FTB going to look at my first 3 properties today at ripe old age of 41.
AIP with Halifax but thinking I should maybe use broker?
Also, thinking of fixing. Broker has recommended 2 year but I'm thinking 5 year at least as I should be in a much better financial position then.

Thrugelmir

Look on a 5 year product as giving you peace of mind. You'll be able to budget ahead knowing the mortgage outgoing. There's no right or wrong choice. Do whatever you feel comfortable with. The inherent danger is that in two years time mortgage interest rates have risen significantly. Unlike most other periods in history. The one certainty is that interest rates are going to rise. By how much and when. No one knows.

getmore4less

Think about LTV in 2y and 5y can you hit a lower rate.

Think about lenders with good retention deals.

butterflybook

A broker will no doubt be able to secure a more competitive product than Halifax but of course the most competitive product is not always the best deal over all.

Your broker should be recommending based on your needs and circumstances and so if you have any concerns over product term its best to talk it through

bottleandahalf

Thanks for replies.
Viewed 3 houses,
1. Was pretty small for 155k, great location and view - 3 bed bungalow.
2. - 3 bed detached, was nice but bedrooms not as spacious and no ensuite like house
3. Which is great size for price. Four bed detached with garden, 2 receptions. Been offer of 121k turned down for it. Wonder is the EA bluffing me? Scared of it slipping away with a low bid.

mark55man

you are basically taking a punt on interest rates. I fixed for much longer and its been good. you need to work out how much you would save using the different rates for 5 years and 2 years - then you need to explore what rates might apply between year 2 and 5 and whether you feel they are likely. in my case, I would have been better taking a short term fix and then a long term fix, because the great crash happened


currently the bank of england is predicting a small number of rises over the next few years - but with brexit in the middle of that period, who knows,


in my opinion you should fix for 5 as the differencebetween 5 years and 2 years (especially when you take product charges into consideration) is very low - less than 0.5%


I hve just fixed with coventry at 2.1% for the remaining 7years if themortgae - I know its the new normal, but I just cant help thinking I wont ever do much better than that

bottleandahalf

Think 5 year is definitely the way to go.
Now to decide whether to make offer.
House was sitting at 139k, reduced to 126k. Offer of 121k refused outright.

Thrugelmir

bottleandahalf wrote: »

House was sitting at 139k, reduced to 126k. Offer of 121k refused outright.

If you want the house then go for it. You've a clear indication of the sort of offer that will be accepted.

mark55man

at 1.9% £2000 - which is what your offer is short by would cost £40 a year decreasing 25 years or £500 in extra interest. so £2.5K (capital and interest) is £100 a year. put the offer in and then don't buy 2 pints a month and you'll be all sqaure


ther comes point where you try so hard for the best deal, that you forget about the softer costs of not getting a deal, as well as the actual costs of searching

bottleandahalf

Went in at 123k 2nd offer - Refused.
Looks like they're holding out for full whack?

csgohan4

Offer what you think it's worth, don't be pressured