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Mortgage ends 31 Jan 08 - was on 4.3%!!
mondaytuesday
Posts: 13 Forumite
Hi All
not the end of the world, but rates have certainly shifted in 2 years since my lovely 4.3%!
People are saying rates may go down in Jan, so do I let my current mortgage run out, go onto their high current rate of 7% for a month and then switch?
Best deal so far is 5.79 for 2 years (fixed) £1000 fees.
Anyone seen better? I must have it fixed because we have 3 babies and I just wouldnt feel happy risking a rise. We owe 185,000.
Feel like i'm being ripped off at 5.79, or was I just too lucky with my 4.3%?
Thank you, Katie
not the end of the world, but rates have certainly shifted in 2 years since my lovely 4.3%!
People are saying rates may go down in Jan, so do I let my current mortgage run out, go onto their high current rate of 7% for a month and then switch?
Best deal so far is 5.79 for 2 years (fixed) £1000 fees.
Anyone seen better? I must have it fixed because we have 3 babies and I just wouldnt feel happy risking a rise. We owe 185,000.
Feel like i'm being ripped off at 5.79, or was I just too lucky with my 4.3%?
Thank you, Katie
0
Comments
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What is the likely value of your home?
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Feel like i'm being ripped off at 5.79, or was I just too lucky with my 4.3%?
One assumes you havent had a mortgage for a long time then. Just over a decade ago, you were paying nearly three times that amount.Best deal so far is 5.79 for 2 years (fixed) £1000 fees.
Why two years?
Is your mortgage a large one where a high fee/low rate option is best?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Katie,
I am in the same position as you, only mine was 4.5%!!
There is likely to be an interest rate cut at some point over the next few months but nobody can say for sure whether it will be January, February, March etc....
This is the key point: Mortgage companies along with most financial institutions have been affected by the credit crunch and they aren't going to be jumping at the chance to reduce their rates. Most people make the assumption that when interest rates fall, the mortgage companies will follow suit. This is not the case. In fact the only way you can guarantee a good rate right now would be to go for a base rate tracker mortgage.
I will be opting for a tracker, but you want to guarantee 'no surprises' so it seems a fixed rate would be best suited to you. Don't expect lenders to make adjustments when rates fall.
5.79 is good from what I know of the market right now. There are also some lenders out there who might be able to compete even further with those arrangement fees as well.
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Sorry --- Please delete this---- as my message posted twice due to a slow server response!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks All, to GG: value of home is 430,000. Thanks, Katie0
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