Remster

In light of the current economic instability, what are the SN Faithful (tm) views on Mortgage products?

I have been on a very nice fixed rate of 4.24% over the last 2 years which will end in Nov., so i'm looking for a new product but what? If rates do start to fall again in the new year which some are predicting then a tracker/discount may well be the better option rather than being tied to a fixed. Also, there are some ridiculous product fees being currently charged, i've seen upto £2.5k .

Let's have it then!

Patt@firstime

Product fees have gone up, alot are on a percentage basis now so can work out crazy money - I've seen one over £9,000!!!

Luminous

iTrader: (3)

Firstly it depends what you can afford. If you cannot afford any increases over the current interest rates, then picking a discounted mortgage that locks you in for a period seems silly. Interest rates are possibly close to their peak, but nobody really knows.

If you are close to what you can afford, then a fixed rate product will give you the peace of mind that you can continue to live where you are and afford it. However, if you feel rates are likely to fall then you will also feel that you are going to miss out.

In that case a capped tracker mortgage may be the option. Make sure the cap is below what you can afford, so if the worst happens you don't lose your home. If interest rates fall, as you hint you expect, then you will enjoy the gains.

Of course, others may disagree with that advice

bluenosewrx

iTrader: (2)

I have just got a 5 year fixed rate after my 2 year one was up, only added about £20 a month extra and paid not one penny in fees.the rate is 5.78 for 5 years as i need the security of knowing what i am paying out.

Done it through my FA and he is a good bloke, can give you his number if you like.

Mac

fast bloke

where did you get a 5 year fix at 5.78 with no fees?

Scotsman

iTrader: (3)

My financial advisor has recommended we changed to an offset mortgage (www.oneaccount.com). Depends on income and savings though - but worth trying out their Mortgage Shrinker to see what it might give.

Just came off a 4.99% rate to move into it (though doing interest only as the 2 endowements I have are doing fine).

Richard.

MattN

who's that with?

Remster

Would love to know who was offering this deal. I can get a 5 year fixed at 5.49% with a £995 fee but that's it. My current lender is offering a 2yr discount @ 5.55% which is 2.34% below their variable rate. The fee is £499.
Also, a Tracker at -0.31% below BOE rate currently 5.44% with fee of £1749 .

My mortgage is only 35% of the property value (£260k) and we can easily stomach any rate increases. Still think I may gamble on a Tracker.

The One Account is something I might look at.

Bakerman

Most mid to long term fixes aren't much higher than there have been for a while ............. what does that tell you ?

Individuals require different solutions and dont always compare rate against rate as it all depends on your attitudes - every mortgage will have a fee but it might be added to the loan which to be frank is nuts. Offsets can work but only for specific people and even then can you cope with effectively the mental aspect of having a mega overdraft, for me it would get me down even though I totally understand the product. Seek professional advice if you dont know what to do, a lot of advisors will effectively give free advice to you as the product provider will 'pay' the advisor.

For me coming out of a 5yr fix next year I will fix again for 5 as I have always ben cautious and therefore like to know what I am paying (but then I am paying on >£200k). - you maybe different.