Luminous

iTrader: (3)

We all heard it predicted. The credit crunch etc etc etc.

I must admit I was starting to worry, some of you doom mongers even had me going....

My 3 year fixed rate mortgage has just come up for renewal. I got a letter through the post today for my next 3 year rate from my lender. I knew it was going to be more, but I never expected a WHOLE SINGLE POUND more per month

No charges or set up fees to pay/ or to be added to my mortgage.

PaulC72

What %age is that at then and who with, ours is up in August, so I too am bricking it LOL.

The Zohan

hold on tight - the crash is still on its way!

<private Fraizer from dads army voice on> "We are all doomed!"

I am sure it will effect other but surely people a lot more - surely people who took fixed rate mortgages must have realised it was likely to go up rather than down?

warrenm2

wheres Pete95 when you need a bit of DOOOOOOM!!!!!?

Luminous

iTrader: (3)

My first offer is 5.95% 3 yrs fixed with Bristol and West. No fees at all, apart from a 5% early redemption penalty should I redeem.

I'm going to start and have a look around soon. As it stands though I am quite happy. Rates may fall again soon with a bit of luck so next month I may get a better deal.

TopBanana

I wouldn't get a fixed rate mortgage now, rates will be much closer to 4% in a year's time

Luminous

iTrader: (3)

Thanks

I was thinking of a tracker, but was uncertain of which way to go.

Dunk

iTrader: (1)

First Direct are doing a 4.99% on a 5yr offset.
Base rates may drop, but will they be passed onto the consumer and when will they rise again ?

D

EddScott

4 is pushing it slight IMO. 5 is very likely though.

I would suggest a 2 year either tracker or discount variable.

Mines going up either way as I'm going full repayment. Had it on half rep half int only.

The fees are joke IMO. I work in an IFA practice and mortgages can be a PITA. We try and do as few as possible.

PeteBrant

Long term fixed rate deals are starting to look very tempting.

davegtt

Starting? Theyve looked tempting for some time IMO.

PeteBrant

Well yes, I mean more tempting than they were 6 months ago

By Deceember, they will look even more tempting.

IMO if you can find a 25 year fixed rate at anywhere around 5% you should take it.

GenericUser

Talking to a relative last week their 5 year fixed rate ended and their monthly payments have risen by nearly £250. I don't imagine they are the only ones in that situation.
250 quid isn't a lot but it's probably enough to cut their leisure spending by half.

MikeCardiff

iTrader: (2)

Of course it all depends how big your mortgage is. If your mortgage is small, then any rate increases arent going to make much of a difference.

The people who will be in trouble are those that took out a big 100% mortgage on a 5% or less introductory rate, and are now having to look at new deals. If these people were only just affording it before, having to come up with a couple of hundred or more a month extra is really going to squeeze them.

lozgti

I'm sure there are a few who are finding moving from maybe 4% to nearly 6% a pain though

Everyone,especially 'the city' keep talking about lots of interest rate cuts,at least four.I'm sure that is what they would like

I thought a Bank of England spokesman had said you might get a little one but otherwise on your bikes.We've got a potential inflation problem that needs keeping in check

I'm happy with my 10 year fixed at 5.25

Banks rate seems to bear no resemblance to what lenders offer anyway

Ted Maul

Wouldn't the banks have factored any market expectations for future interest rate drops into their fixed price equation??

The way I see it, if you think rates will drop more than market expectations then get floating, and if less then get fixed.

speedking

Of course they do. All you're doing is trying to second guess a bunch of analysts who are full time professional predictors of rate changes over the short, medium, or long term, plus a bit of cream on top.

al4x1

exactly, if they're offering cheap long term deals there is a reason for it, even if its just to tie you in for that length of time.
I've stuck with an offset tracker and interest only, but mainly to keep no redemption penalties as the house is a renovation. This year will be interesting whether the doom mongers manage to talk the market down, It seems to be slowing the market but not by that much

skoobidude

Cue a few Subarus for sale

PeteBrant

Well going on the last 25 years, the average interest rate is 8%


If you look at the historical figures, getting a long term fixed rate at around 5% is extremely good value.

You would care not a jot about changes in the interest rate, and you have redemption penalty free windows if you want sell.