Mortgage Interest Rates

glenimp617

glenimp617

glenimp617

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30 Sep 2005
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16,543
Mines 2.29% fixed 2yr ago

Everytime I fix, rates always go down.....sods law says next time I pick a variable/tracker rates will go up

Can't win, then again I'm the sort of person who always (and I really do means ALWAYS), looses at heads or tails
 

alexakasloth

alexakasloth

alexakasloth

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Joined
13 Aug 2004
Posts
8,329
Location
England
With Nationwide as well but due to our LTV we're on a slightly higher 1.54% now. We're coming to end of our previous fixed term period so good timing really as we now want to borrow some more.
 

BigBoy

BigBoy

BigBoy

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Joined
19 Oct 2002
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6,829
Location
Bath
Our fixed term ends in June currently 2.89% looking to stay with a fixed and drop the term to 15 years LTV of 45% nationwide is offering me 1.54% I'm tempted to stay with them going forward..
 

Simon

Simon

Simon

Caporegime
Joined
21 Oct 2002
Posts
26,252
Location
Here
Nationwide very good. And easy to switch. Mine will be down to 0.94% in April.

Just switched to a 5yr fixed on my flat BTL at 2.05% but it’s a rare one with no ERCs.
 

The_Abyss

The_Abyss

The_Abyss

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15 May 2007
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12,804
Location
Ipswich / Bodham
5 months remaining on a 2 year fix at 2.19%, so probably good timing for us but I'm not really too bothered anyway. 13 years remaining, and the rental income more than pays for the mortgage even net of tax. Rates have been so low for so long that the difference really isn't that much, especially on shorter terms.

I borrowed £60k to buy my first house, at a rate of 8.5%. A year later we were paying 13.5%. Lots of people buying today have never experienced scenarios when your mortgage payment can near double over just a few months.
 

Destination

Destination

Destination

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21,257
Psycho Sonny said:
I was right in the fact that people were suggesting fixing for 5 or 10 years and I said fix for 2 max. As I couldn't see rates going higher because of brexit. Looks like corona virus was the cause however I was still right in terms of not going for a 5 or 10 year everyone else was telling people to go for. I said fix for the shortest possible deal and renew when it was done.

Trackers overall are far too risky for most people so 2 year fix is a much better proposition for most.

I will be going to a 2 year fix when mine is up
Click to expand...

Most trackers allow switching at any notice with no penalty, and no early repayment charges or overpayment charges
They don't fall under any of the criteria you mentioned.
Additionally a tracker would have been vastly superior to be locked in for the next 2 years, and then having to find a new deal as the recovery for this emss kicks in.
 

The_Arbiter

The_Arbiter

The_Arbiter

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2 Jul 2019
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2,423
robj20 said:
Our 5 year comes to an end later this year. Is it likely to be a good year for low rates.

I think we fixed at about 2.9%.
Click to expand...

Is it or it is?

Nobody knows. The difference in new rates vs an existing rate is only as good as what the monthly payment is and total amount over the duration. 1% increase on a fixed rate vs 1% decrease on variable isn't worth the gamble for some if they merely save £10/20/30 a month, especially if as mentioned rates could increase or double in the future. And only costs a grand-ish more over 10yrs for example.

A lot of hype over these rates. For me it's still worth a long term fix due to the security and low extra cost. All predictions are to be taken lightly.
 

jaybee

jaybee

jaybee

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10 Jul 2008
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7,714
I've been debating what to do. First time buyer. We are about to take out a massive mortgage with LTV of 85%. To get to 85% is a massive stretch but we did it to access better rates than 90% LTV. I was wondering whether to go with a 2 year variable and assume (gamble) that rates will stay low for the next 2 years, and due to lower repayments do a lot of overpaying so that at the end of the 2 year term, we would have gone from 85% to 80% LTV. At that point I would then do a fixed 5 year at hopefully still low rates.

I'm seeing variable 2 years at about 1.15% lowest rate. 2 year fixed at around 1.45%.
But then, the 2 year variable only needs base rate to change by 0.25% and it's close to being the same as the fixed rate anyway.

2 year is also attractive as a first time buyer in case the neighbours turn out to be awful and we have to move...not that we could probably afford to even move with all the costs at the endo of 2 year anyway. I'm waffling now.... hard to know what to do. Originally I was like...5 year fixed of course. Not sure now.

Any thoughts?
 

The_Arbiter

The_Arbiter

The_Arbiter

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2 Jul 2019
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Take into account how much you can over pay without penalty, as they can vary. Check how much that LTV percentage difference actually makes, say the 1.15% vs a 5yr fix at 1.9% (guessing), over the 5yr term. Is that extra money worth the security or not? -only YOU can say. And what's to say you don't have rubbish neighbours during any fixed term, in any area? Moving costs lots of money as you say. Mortgage fees to access lower rates are worth it if they work out lower in the long run too, but that depends on the loan amount, and if paying the fee up front. Without figures it's all guess work here.

The most important question, is this the place you really want to buy?
 
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