Stick or twist - new mortgage due to start 1st May!

ReadySteadyPop

Jill_1980 said:

Thanks guys, appreciate it's very much like asking how long it's a piece of string but your responses have helped me realise I'm probably best securing it given it's such an unknown, take the hit then hopefully in 2 years the rates will be much lower again.

As other posters have said this is a gamble probably not worth taking.

fergie_

Just to point out, if you are happy staying with Natwest and happy to gamble, it would be better to move onto their fee free tracker short term - rather than their SVR.

This then allows you to switch to a Natwest fixed rate product at any point over the next 2 years without penalty. After you make the switch though, you are locked in subject to early payment penalties.

This is what I did in December when (swap) rates were expected to drop in January - which they did. However Natwest rates didn't drop as much as I had hoped so switched in February when NatWest rates started to increase again. It has definitely saved me money, but in hindsight I would have been better off switching mid January.

Also keep in mind it is better to pay a lower rate of interest when your loan is high, rather than a lower rate when your balance is lower. In other words, you may want to think about the current situation, rather than worrying about the future when you could remortgage again.

ReadySteadyPop

Depending on how much you borrow it could be a big gamble, not sure that the average mortgage holder knows more about credit markets than this guy, but it doesn`t mean he is right.

https://www.bbc.co.uk/news/business-68769561

Hoenir

ReadySteadyPop said:

Depending on how much you borrow it could be a big gamble, not sure that the average mortgage holder knows more about credit markets than this guy, but it doesn`t mean he is right.

https://www.bbc.co.uk/news/business-68769561

The UK might well follow a different course to the US over time. US mortgage rates are already significanly higher than in the UK. 

ReadySteadyPop

Hoenir said:

ReadySteadyPop said:

Depending on how much you borrow it could be a big gamble, not sure that the average mortgage holder knows more about credit markets than this guy, but it doesn`t mean he is right.

https://www.bbc.co.uk/news/business-68769561

The UK might well follow a different course to the US over time. US mortgage rates are already significanly higher than in the UK. 

They won`t cut rates if the U.S is sticking or raising, that would be disaster, a run on the currency basically.

Hoenir

ReadySteadyPop said:

Hoenir said:

ReadySteadyPop said:

Depending on how much you borrow it could be a big gamble, not sure that the average mortgage holder knows more about credit markets than this guy, but it doesn`t mean he is right.

https://www.bbc.co.uk/news/business-68769561

The UK might well follow a different course to the US over time. US mortgage rates are already significanly higher than in the UK. 

They won`t cut rates if the U.S is sticking or raising, that would be disaster, a run on the currency basically.

The era of the dominance of the $ is edging ever closer towards an end. The American version of capitalism model appears broken.