More likely!
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
More likely!
Soldato
Is the consensus that 2 years fixed will result in better deals come 2 years time, rather than a 5 year fix. Fixing for 5 years now feels like a mistake if we're at/near peak.
Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
Based on my quick Googling earlier; I'd say so.
No, you contract for a period of time. E.g. track the base rate for a period of 1, 2, 5 years etc.
Fully variable where you can jump ship at any time are $lol.
Soldato
I don't know the balance but if you have under 4 years left, would a bank loan be more flexible and potentially cheaper?
You can pay lumps off whenever you want with one of those.
Soldato
I have my screen a whack then tried on a colleague's glasses thinking I was reading it wrong or perhaps you had typo'd
Fair play to you... Guessing it's a nice part of the country?
Soldato
Whatever choice you go with is a gamble. With current house prices interest rates have to be near their peak as people simply can't afford the repayments if it goes to 6+. If there's a price crash that might be different though.
I could be inner London?I have my screen a whack then tried on a colleague's glasses thinking I was reading it wrong or perhaps you had typo'd
Fair play to you... Guessing it's a nice part of the country?
I'd do something like this
Even svr wouldn't be too bad if close to 0
Associate
Yes, that is a fair point. Assuming interest rates were still available @ my current rate of 1.8%, then the actual (total) difference is £130 at the point of remortgage. However, we are where we are now with the choices available, and whilst I do expect future rate reductions, the days of ~1.5% ain't coming back anytime soon, so you have to make the best of your individual position and the broader financial state. No easy choices, really.
Well the answer to this is actually... It Depends.
Some lenders have no early redemption penalty on some trackers, meaning you can jump to something else. Some don't allow it without paying an early repayment charge and there are offerings which allow switching to a fixed rate during the term of the tracker regardless of if it has an ERC or not.
(This is why it is important to look beyond just the rate and the fee when deciding on a mortgage and why so many people fall foul when going "DIY" rather than getting advice.... many simply don't understand what they are buying, or what alternatives exist in the market and this is even more important now with the current market conditions, as evidenced in the first reply to this
)
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Caporegime
Doesn't even need to be inner, a house 200m from mine sold for £900k a year ago (4 bed detached, Zone 6 South London).
Soldato
My dad has 3 years left. It's like 12k. I don't think it's even worth thinking about how you can get it cheaper, especially at the rates he's on due to renewing a couple years back. Why consider or worry about mortgages
Permabanned
there will be at least one more bump prob to 4% .. then it will take 3-5 yrs to come down to a stable 2%
Soldato
Did you look at what a variable would have been?
Variable was slightly less like 4.5% or something. It’s my first home so I’m an idiot when it comes to mortgages. My current price ends on the 30/06 and I’m really not sure what I should do.
Soldato
- Joined
- 27 Aug 2005
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At this moment in time i found the rate for 5 year fixed to be lower than 2 year fixed.