Fixed Rate Mortgages?

The Fear

A Wise Man (once sat next to him)
#1
Is now the time to start fixing do you think?

Just been offered a 3 year at 2.69% which is less than I pay on my tracker.

Or a 5 year at 3.19% which is still slightly under.

Only one way mortgages can go now really, I reckon they'll hold them another year but you never do fully know.

Opinions?!
 
#2
Well, my 5 year fix at 6.7% has finally just come to an end!!! WOOHOO!!!!!!!!

So I need to make a decision of wheter to fix again (at a lower rate) or just drop onto Natwests standard variable rate.

Given my track record, I ALWAYS choose the wrong option, so I would reccomend doing the opposite.

I am staying on the variable rate.

So you might wanna fix. lol

Seriously though I read a few articles 2 weeks ago which stated the rate would not increase until unemployment was below a certain level (7% rings a bell).

This was what the new govenor of the bank of England said, and they are estimating unemployment wont drop that low for 2-3 years.

 

The Fear

A Wise Man (once sat next to him)
#3
Yeah, one thing with this fixed rate is no fees and it is less than I'm paying now, so will think for a while but can't see a downside as I certainly can't see interest rates going down.

SO glad your rate has ended now, that was a massive blow (and typical!!!)
 

Wurzel

Alert Team
#4
No, I would be surprised if rates moved in the next two years, and even if they did they are hardly going to shoot up, so just keep an eye on the market. The BoE will give prior warning if they are going to increase rates as far as i am aware.
 

The Fear

A Wise Man (once sat next to him)
#5
Yup, agreed, however this is £40 a month least Han I pay now, no fee to change to it, can't see a downside at the moment.
 

BodyButter

Vital Football Legend
#7
The guy from Peak Prosperity reckons that interest rates are at historical lows and should be at least 10%. Admittedly, he's not the most cheerful of fellows but there does seem to be some logic to his thoughts.
 

Pride of Lions

Vital Football Legend
#8
Yeah, I agree BB. Mortgage rates are very low atm. I can't see them getting any lower, so I'd go for a fixed low rate for as long as I could get, with no application or admin. fees.
 

Ratman

Vital 1st Team Regular
#9
Like Deano my 5yr fixed rate (at 6.9%) is just coming to an end at the end of this month. Probably the worst mistake ever made! As far as I know I will get put on a standard variable rate automatically. Do I need to do anything like change the direst debit?

Like you deano I also always seem to do the wrong thing and I was also planning on staying on a variable. Do you think we should both go fixed??
 

The Fear

A Wise Man (once sat next to him)
#10
You don't need to change DD's mate.

But you do need to ring them and check what rates/offers they have, don't just assume (unless you have it in writing) that it will revert
 

Ratman

Vital 1st Team Regular
#11
I looked online (Halifax) and it does say that all fixed rate mortgages go onto a standard variable rate which is currently 3.99% instead of the 6.9% i'm currently fixed on so happy days but If I can get an even better deal with just a phone call its worth doing
 

The Fear

A Wise Man (once sat next to him)
#12
Yup, as said mate, i went from 3.49% to 2.69% and it only took a phone call.

To be fair to Santander they prompted me via a letter to call.

Saves me £40 a month plus with my 123 current account i get £6 ish cashback as well

Gutted for you and deano with those fixed rates, you've paid nearly double. Really bad luck but at least it is over now, the extra money will be most welcome i'm sure!!
 

Ratman

Vital 1st Team Regular
#13
Reckon going from 6.9% to 3.99% will save a couple of hundred quid. I'll give them a bell if yours have gone from 3.49 to 2.69 I must be able to do better still than 3.99%
 

Ratman

Vital 1st Team Regular
#14
http://www.halifax.co.uk/mortgages/existing-customers/switch-to-a-new-deal/

Just looking on the halifax website (above) at my options. Looking at the 4 year fixed rate one initial rate 2.84% the overall cost for comparison is 3.6% - what does that mean? And what is LTV 0-60%?
 

Ratman

Vital 1st Team Regular
#15
Ah just googled LTV and there lies my problem. I don't own enough equity to get a really decent fixed rate. My LTV is approx 85% I reckon.

Still not sure what the initial rate vs overall cost for comparison
 

holtelower

Vital Football Hero
#17
My 5yr fixed rate also just ended. I am now saving £120 a month which is fecking huge for me.

From the sounds of it, a lot of us did the same. It was when Brown took over from Blair, the reports were interest rates were going to rise sharply, so I fixed.

Within two months the worldwide recession hit and rates were at 0.5% !!!.

Cost me a fortune, but hey, what can you do.

I have now on fixed 3.19 for 5 yrs on my top up mortgage (as I went onto there standard rate of 3.99%, but still on the variable for my main mortgage as I am on a different rate which is 2.5% - as soon as there is any talk of it going up, I'll fix.
 

Clubpaver

Vital 1st Team Regular
#18
Mine finishes in 16 months,so I couldn`t give a toss !
But seriously, if i were in the position of choosing now,I wouldn`t go with fixed just yet.
If there are any signs of it going up,you`ll still get a good fixed rate deal.
I`ve been using fixed rate for around the last 15 years (ish) and overall,it`s definitely paid off.
It gives you that feeling of security over a set period of time aswell.
 

The Fear

A Wise Man (once sat next to him)
#19
Thing is, for mine, it is less than I am paying now, mortgages won't drop again now, but even if they did, it wouldn't be for more than the % drop I have been offered.