So you're taking out a new mortgage today...

Dick_here

... £150k for 25 years (for argument's sake). What sort of mortgage do you go for ?

Come on board experts, amateur or otherwise, let's see if we have a consensus or not.

I'd go for a 5 year+ tracker right now, one that would let me switch FOC to a fix if and when rates come down.

Over to you guys...

350nutter

I've just gone for a 5 year fix for the 1st time in my life(remortgage). I hope in 5 years all this credit crunch stuff and interest rates will have settled down.

I can see interest rates increasing by 1-2% in 09-10 to try and control inflation which is on an upward path.

I'm not a financial person, that's just my personal opinion.

TighterThanTwoCoatsOfPain

I know its a general question, but too many things to consider e.g. length of time expected to be in house etc.

However, i have just fixed for 10Yrs @ 5.15% with a term of 20Yrs (no prizes for guessing who with).

I dont really follow trackers that much tbh as not a fan of not knowing exactly where i stand but say for arguements sake you can get a brt + 0.8% (assume that 'normal')?

The BR would have to drop and more importantly stay below 4.35% to match it. And IF that happened, and could fixed at say 4.65 for 10 years then i would save £30 on my payments.

My personal opinion is that its not worth risking the stability i now have for 10 years.

Only imo of course

dimbo61

hi I am in the middle of a 5 year fixed offset on a very good rate and
very glad I fixed for at least 5. two weeks after we took the deal our lender
brought out a good 10 year fixed offset but thats history.
flexibility costs money with higher rates on your mortgage !
If you intend to stay in your home for the next 5/10 years then consider
fixing as rates even at 6% are still historically low and consider how to pay
it off as quickly as possible and while paying as little interest as possible.
like I said I think offset is brilliant GOOD LUCK

Dan_Collins_2

I would fix for 5 years, I mean that I, if it was me and in my personal circumstances before you all start! LOL

However it is hard to say what one for you or anybody else without going through your life story, or what some call a fact find!

Cazza

Just remortgaged onto a lifetime tracker with no Early Repayment Charges. I'm paying 0.5% over Bank of England rate. I thought about fixed, but I'm in the first property I've bought, a one bedroom flat. Didn't want to tie in for 5 years as we've been here 2.5 years already and really don't want to still be here in 5 years time. Most lenders will allow you to port, but I didn't want to be restricted to one lender as and when we're ready to move on, this way we've got flexibility if we sell and don't want to buy straight away or can't find somewhere we like.

As Dan says though, it is very dependent on personal circumstances!

cflarry

I am one of many home owners with a fixed rate deal mortage coming to an end!!!
Currently with Northern Rock, house may be worth 185000 I owe 167000 what are my chances of getting a reasonable affordable deal? I am currently paying 1060-00 a month and struggling like all other people in the uk ! Anyone got a tent I could borrow may be out on the street soon!

Niksan

TighterThanTwoCoatsOfPain wrote: »

However, i have just fixed for 10Yrs @ 5.15% with a term of 20Yrs (no prizes for guessing who with).

who's that with ? I'm due for remortgage soon and the only thing I though was good for my case was a full term tracker from c&g but get the br+0.64% you need to pay ~1k "product fee" which is keeping me away.

JF77

Niksan wrote: »

who's that with ? I'm due for remortgage soon and the only thing I though was good for my case was a full term tracker from c&g but get the br+0.64% you need to pay ~1k "product fee" which is keeping me away.

I would guess they mean First Direct! not sure if that rate is still available. I think I also read somewhere that products are now only available to existing customers, but loads of posts about them.

Yeah, it's a shame C & G added such high fees. I got my C & G Lifetime Tracker in Nov at +0.36 with only a £99 application fee and No ERC which I'm very happy with.

TighterThanTwoCoatsOfPain

JF77 wrote: »

I would guess they mean First Direct! not sure if that rate is still available. I think I also read somewhere that products are now only available to existing customers, but loads of posts about them.

It is indeed First Direct, with total fees of £697 including legals... That rate got pulled and think its currently 5.49%, although existing customers only (not "brand new customers only") lol

Would imagine they could well open up again once they have cleared their enormous backlog.. Purely my own speculation, but the HSBC group appear to have plenty of money to throw on around even now (on the surface at least!) so who knows if they will open it back up.

The analogy i use in my own head is if i was offered £1000 to spend in 2 years, or wait 2 years to "see what happens to the market" at which time i might only get 850, BUT i might get 1150, I'd take 1000 today. Perhaps its stupidly simplistic, but hey!

Gailk

I am currently remortaging and went for a 5 year fix with Nationwide.
Got in before the first of the two increases so 5.63% for 5 years with free legal & Valuation and £499 arrangement fee.
Our personal circumstances dictate that we have a reasonable idea on costs for the next few years.