help/advice on fixed deal plz.

homer_j_3

clearly there are many reasons why a 2yr deal may be right but equally there will be many reasons why a 2yr deal may not be right.

Only when a full review has taken place would we know this..

whiteflag_3

homer_j wrote: »

clearly there are many reasons why a 2yr deal may be right but equally there will be many reasons why a 2yr deal may not be right.

Only when a full review has taken place would we know this..

in the current climate what reasons would there be for going for a two year fixed deal?

homer_j_3

Many reasons to do with anticipated family growth or reduction - maybe employment or personal aspirations.

You cant just think - housing market is turbulant and the risk of coming into the remortgage market in the next 2 years is too high if the client clearly needs a 2yr deal. The fact is that it would be equally bad advice to leave them with a tie in to pay.

If the client has said they want a 2 yr deal because of a specific reason then thats why it will be a 2yr deal offered.

The key is whether the OP has had the pitfalls explained to them - which we do not know and are not in possession of those facts.

whiteflag_3

homer_j wrote: »

Many reasons to do with anticipated family growth or reduction - maybe employment or personal aspirations.

You cant just think - housing market is turbulant and the risk of coming into the remortgage market in the next 2 years is too high if the client clearly needs a 2yr deal. The fact is that it would be equally bad advice to leave them with a tie in to pay.

If the client has said they want a 2 yr deal because of a specific reason then thats why it will be a 2yr deal offered.

The key is whether the OP has had the pitfalls explained to them - which we do not know and are not in possession of those facts.

My point was not whether they wanted a two year deal - it was why the two year deal was a fixed rate? Why fix at a rate higher than the discounted deals that are available? If your going to say its because they are worried about rates going up then surely the job of a "mortgage adviser" is to talk them through whats going on in the economy - no sane person is going to suggest your going to be worse of with a discounted rate over the next two years!

homer_j_3

and my point was that as a mortgage adviser, you take about 40-60minutes to fully discuss everything with your client and make sense of what they are wanting, trying to achieve and ensuring that the products you recommend will suit their specific needs.

I cannot answer why the OP is doing a,b or c when you feel x, y and z is better. Fixed rate products are usually offered to clients who want certainty of payments and if the budget is tight, they may feel happier paying a little bit more to have that security.

It gets my goat a little and I have had to remind myself in the past after opening my trap that its not right or responsible for me to comment on other peoples specific advice without having ALL the facts in front of me. What is right for one person could be completely wrong for another.

NeilQuinn

whiteflag wrote: »

no sane person is going to suggest your going to be worse of with a discounted rate over the next two years!

Who knows?

Even the MPC have to meet every month to discuss whether they'll put rates up or not. Nobody can honestly predict where rates will be in a couple of years time.

spinko64

Hi,

I am a mortgage adviser and have read your post. You need maybe to consider other options available so the fees are spread over a longer period i.e. 3 year fixed. The deal which has been recommended is competitive but to ensure you get the right product more questions need to be asked.

whiteflag_3

NeilQuinn wrote: »

Who knows?

Even the MPC have to meet every month to discuss whether they'll put rates up or not. Nobody can honestly predict where rates will be in a couple of years time.

Your right !

but taking into account ever rising fuel costs, huge consumer debt, lower availability of credit, increasing food costs and living costs im really struggling to put my finger on what is going to happen in the next 12-18 months thats going to mean the MPC are going to have to raise rates to take the heat out of the economy .

homer_j_3

Spinko

Can you add the signature as below if you intend to post as a mortgage adviser.

ixwood

Er.. rampant Inflation? Or Stagflation the way we're going!