I fixed for 5-years in December 2021 at 1.45%, at the time against my mortgage advisors' advice may I add!
What on earth were they suggesting?! If it wasn't 10 year then they should be flogged. I know that when we got our last mortgage at the end of 2018 rates were still slowly dropping but in hindsight we shouldn't have been quite so greedy and should have gone 10 years. Probably would have been ~2.1% instead of 1.92%. That being said, if things didn't implode and rates fly up, we would have been looking at just over 1% on remortgage I imagine so paying double that would have been silly. Its always a bit of a gamble and a bit of guessing. We did not win this time around as we had to renew at the end of last year...just before the slight drop in rates.
Not the end of the world and we are lucky that we could, if we wanted, liquidate some assets to pay off almost all of our remaining mortgage but a fair chunk of it is in crypto so...to the moon!
It's hard to say, as nobody truly has a crystal ball, but rates are already starting to climb down, and forecasters are predicting by end of 2025 we will be seeing base rates of <3% again..... If it was me, and I was buying / remortgaging now, I think I'd settle on a 2-year, fix gambling on a lower rate come 2026, but nobody knows whats going to happen in the world between then and now, for all we know we could be dug in some trenches somewhere haha.would you advise buying a house on 5y fixed rate? my bank HSBC are doing 3.9%
.... and forecasters are predicting by end of 2025 we will be seeing <2% again.....
It's hard to say, as nobody truly has a crystal ball, but rates are already starting to climb down, and forecasters are predicting by end of 2025 we will be seeing <2% again..... If it was me, and I was buying / remortgaging now, I think I'd settle on a 2-year, fix gambling on a lower rate come 2026, but nobody knows whats going to happen in the world between then and now, for all we know we could be dug in some trenches somewhere haha.
Sorry typo and corrected, Capital Economics and Nationwide both expect the base rate to hit 3% (Possibly just dipping below) by end of 2025 and to continue dropping beyond that, the BoE have an inflation target of 2% which they aim to hit by end of 2026 / start of 2027, but again, as I've said, nobody knows what world event may unfold between then and now, they're like Birthdays at the moment, one crops up every year.Are they? Source?
Even if they do somehow get back to a base rate of 2% that quickly and the future looks stable, that doesn't mean mortgages will be offered at that, more likely around 3-3.5%.Sorry typo and corrected, Capital Economics and Nationwide both expect the base rate to hit 3% by end of 2025 and to continue dropping beyond that, the BoE have an inflation target of 2% which they aim to hit by end of 2026 / start of 2027.
I never said mortgages potentially would, hence why I've said "base rate", but for certain for the user I replied to, if he is getting a 5-year fix at 3.9% offered now, the rates in 2 - 5 years' time should, future outlook dependent, be more favorable.Even if they do somehow get back to a base rate of 2% that quickly and the future looks stable, that doesn't mean mortgages will be offered at that, more likely around 3-3.5%.
Anything sub 4% right now is the bank taking a big risk at sub base rate figures
Well, it needs to be factored in right now. People saying a 2-Year fix at 4.5 is better than a 5-year fix at 3.9 might be being somewhat optimistic over how far rates can actually fall and how base rates will translate to actual mortgage rates.I never said mortgages would, hence why I've said "base rate".
He recommended I only fix for 2-years.
Anything sub 4% right now is the bank taking a big risk at sub base rate figures
would you advise buying a house on 5y fixed rate? my bank HSBC are doing 3.9%
Anything sub 4% right now is the bank taking a big risk at sub base rate figures
2008 say's helloTrust me, banks do not take risks..... even with my standard mortgage with a LTV of 55% they look for mortgage underwritters to ensure that they don't take the hit fully.
If I was trying to buy a house now, I would be looking for a house that needs little to no work done on it, as house prices may go down with the higher rates but the cost of repairs and modernisation will not be affected by the rates.
I would be prepared to may more for house that sort of house than to have to lay out the repairs and modernisation.
Because very, very simplistically the base rate is the cost of money, if the cost of money is 5.25% and the bank are offering it to people for 4% it's for one of two reasons the banks are betting they can make the difference up over time or in other ways, or they are desperate for customers, or a bit of bothWhere is the big risk for them in that? I don't know the intricacies around how banks fund their mortgage lending over time but are they not lending to you at rate X and as long as they are acquiring that money at a lower rate than you are paying they are probably fine. Their risk comes from giving good rates to people with low equity.
We have about 65% equity in our house currently so unless the market fall into the ocean they will always get their money back if we cannot pay our mortgage and they repo the house.
Crap banks, like any crap company can fold at any point. The number of actual banks that was based in the uk that was effected by the "2008 mortgages" crisis was very low..2008 say's hello
Surely that entirely depends on the price difference between the modernised one and the one that needs doing up...
Also, you might have to borrow loads more to get a modernised one, so you will end up paying loads more in interest.
I can't really see an argument for what you have suggested, unless there was little difference in the price between the two conditions anyway.
Yeah your right, It's a personal choice (If I was buying....) I hate dealing with certain types of trade people.. and I would rather not have to spend my time to do it.
Some guy wanted to charge me £600 pounds to do the dry verging down one side of the roof just because a corner piece about a foot long broke off. The price rang bells as soon as he said it will only take me an hour.
£600 pounds for an hours work.. good work if you can get it!
Luckly, someone one recommended a chap that came round and did it in 30 mins for £70 pounds.
Obviously price does play a factor, just that all the places I've lived in; I have needed to do zero work for moderning... this is also the reason why I would not consider an old build as the walls and skinting boards not being straight would drive my OCD nuts! lol