Mortgage advice?

[dtokez]

Hi all, our fixed term with Halifax has just run out (I think we were on about 2.5%). Not sure where to go from here. The base rate looks appealing at 0.75 but I'm worried about the possible effects of Brexit etc causing a big jump.

Is it worth the gamble to move to a tracker or better off playing it safe with another fixed? How does variable come into the equation, are they vastly different too trackers?

 

[Brizzles]

You want sensible Mortgage advice when the thread below yours is 'Balloons should be banned...' ?

This is GD

 

[bloodiedathame]

I tend to go fixed so I know what I'm paying per month. Tracker will follow BoE interest rate so probably only up. Variable is typically the interest you pay after your fixed or tracked deal runs out.

 

[Deleted member 77746]

You won't get better than 2.5%, it hasn't ran out at all you can either stick with it or move to a new product.

 

[Mason-]

You won't get better than 2.5%, it hasn't ran out at all you can either stick with it or move to a new product.

You will. I'm a first time buyer, 10% deposit and got 2.09% fixed for 2 years.

 

[Psycho Sonny]

Fix for 2 years. Interest rates aren't going anywhere so fix short term and overpay the difference to make it either end sooner or the payments less to overpay even more.

You won't get better than 2.5%, it hasn't ran out at all you can either stick with it or move to a new product.

What? You can get as low as 1.5% fixed. You can even fix for 10 years at 2.5%.

Please at least do some research before giving bad advice.

 

[Maccapacca]

I've wasted thousands thousands probably in being fixed and being 'safe' over the last 15 years.

I would have been better off every time being on a tracker or worst case base rate.

 

[Josh]

You want sensible Mortgage advice when the thread below yours is 'Balloons should be banned...' ?

This is GD

 

[cheesyboy]

I'd go with whatever's cheapest at the moment. Lowest rate (taking into account any arrangement fee)

Can't see more than a 1% increase in base rate for 5+ years.

 

[Trifid]

I'm considering fixing at 2.09% for 5 years at the end of May, which is only 0.1% higher then a 2 year fix. Both with no fees.

 

[dl8860]

I've wasted thousands thousands probably in being fixed and being 'safe' over the last 15 years.

I would have been better off every time being on a tracker or worst case base rate.

Easy to say in hindsight. I've been on my 5 year FTB mortgage for 2 years and could say I wish I'd gone with 2 years fixed, but no one knows the future. The rates are priced in by people who will in almost all circumstances know the future of interest rates better than you, so just go with what you feel comfortable with.

 

[Kemik]

You should really speak to a mortgage advisor.

 

[dowie]

Depends on the deals available, your preferences etc.. tbh... if you're shopping around I don't think you'll go too far wrong with either. I've been quite happy with a tracker for a few years now though for example someone in another thread pointed out a 5 year fix that seemed rather reasonable given the minimal additional premium for taking it:

https://forums.overclockers.co.uk/posts/32514234/

 

[glenimp617]

Barclays and first direct offering 1.99 iirc

 

[Maccapacca]

Easy to say in hindsight.

Absolutely but I only really went fixed because everyone else said it would be best fixing. My preference was the least expensive at the time which was a discounted rate.

 

[Gixer]

I fixed for 5 years midway through last year. It wasn't a massive price increase over the 2 year fixed deal so was a no brainer for me as I want stability. They offered me a fixed 10 year deal but the cost of that was a little too inflated for my liking.

 

[lunar]

I'm considering fixing at 2.09% for 5 years at the end of May, which is only 0.1% higher then a 2 year fix. Both with no fees.

Well done. At least you know what to expect for the next half a decade.
With Brexit, who knows what will happen; Interest rates could rise steeply.
I think in these times fixed surpasses tracker.

 

[Double07]

Taking a 2 year fixed rate is not a bad idea right now, all things considered (i.e. no one has the faintest idea what is going to happen in the next 12-24 months with you know what)

 

[Jono8]

Just remortgaged one part of our mortgage at 1.89% for 5 years......which is meaningless to you OP, because there are many variables, of which we have no clue about.

This is almost as pointless as the threads where people compare car insurance.

Go and get proper advice, based on your own circumstances.

 

[HungryHippos]

Just remortgaged one part of our mortgage at 1.89% for 5 years......which is meaningless to you OP, because there are many variables, of which we have no clue about.

This is almost as pointless as the threads where people compare car insurance.

Go and get proper advice, based on your own circumstances.

5 years at 1.89% is very reasonable though.

I've been "gambling" with 2 year fixes for the last 6 years, so far it's worked out, but I do keep thinking that the interest rates can't stay at 0.5 - 0.75% base rate forever.