Mortgages

Mikey

Mikey

Mikey

Soldato
Joined
28 Dec 2002
Posts
6,737
Location
South Coast
Fixed or tracker? Looking at 3 years etc.

I'm looking at tracker at the moment, we're going to be first time buyers etc.

Reason why is I reckon rates will drop...
 
Interest rates are quite high at the moment, so fixed might not be such a good idea.
Discounted tracker is probably a good option, but beware of high product prices. You will need to work out whether the discounted interest rate on the amount you wish to borrow is worth the product price.

Lots of things to consider when it comes to mortgages, so going to a mortgage advisor is always a good idea, but always do the research yourself as well.
 
Yeah been dealing with one, just warrey of the fees etc. etc. I know some say they don't charge fees etc.
 
I always thought variable capped rate were they way to go, as it'll vary with the IR but won't go above the capped level so you know what is the highest you could be paying per month.
 
I was offered a deal with Northern Rock when we tried to move it. 4.99% fixed for 15 years. This was a few months ago, maybe even a year now I can't remember. It was the best deal I could find at the time. I realy don't like the idea of a tracker mortgage but I guess if you have enough dissposable income every month you can take the risk.
I much prefer to know adsactly how much I have to pay per month no matter what happens to the IR.
Only advice I can give is shop around, goes without saying realy.
 
I'm in the same boat myself. I spoke to an IFA on Monday and although they can't tell you what to go for, he "told" me to go for a tracker at the moment. Some of the mortgages had heft fees (nearly 4k) but the rate was 4.74%, 1% lower than the Bank of England base rate. All pros and cons, just depends how much you can afford each month.
 
Personally, I'd go for a maximum term fixed rate (post above said 15yrs which is great)... OR a capped variable rate. This is purely from a money management point of view - as you know the maximum/exactly what is going to come out. If you have ample savings to dip into where months are more, go fully tracker as above post.
 
jdickerson said:
Personally, I'd go for a maximum term fixed rate (post above said 15yrs which is great)... OR a capped variable rate. This is purely from a money management point of view - as you know the maximum/exactly what is going to come out. If you have ample savings to dip into where months are more, go fully tracker as above post.
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Only thing is fixed rates are pretty high at the moment, it's extremely likely over the next few years they'll come down again and you'll be stuck in a high rate unless you pay the large penalties, although I do appreciate that you will know exactly how much you are going to pay so will have stability with your payments.
 
its a difficult time to be looking at mortgages, 3 months ago and 3 months time would be better.

the us has reduced interests rates and the northern rock have put the willies up most investors and spenders. this means that people will be fearing a slump/recession and will stop spending more or buying mortgages/houses.

i expect the interests rates to go down soonish as inflatinoary pressures reduce because of the mlack of spending by the jittery public. add that to the fact that there will be a lot of people not buting/selling and the remortgage business will become more attractive as banks look for more business (although they moght get more picky about who they lend to)
 
I got a mortgage adviser. Very beneficial, and doesn't cost me anything.

I've gone with Nationwide. Got a 2 year tracker at 5.48%. That had a product fee of £599, which we worked out over the 2 years was worth it. Provided you've got a 10% deposit, you'll have no problems getting a mortgage. What may be effected by current events is the 100% mortgages.

Can't wait for it all to go through and get into my new house!
 
I have mortgages on 2 places

one is a lifetime tracker at 0.14% above base, the other is a 1.75% discount off standard variable ( 5 years ) , the latter proved to be a bit of a con as they once increased the standard variable by .25% when ther had been no B of E increase
 
zom247 said:
I'm in the same boat myself. I spoke to an IFA on Monday and although they can't tell you what to go for, he "told" me to go for a tracker at the moment. Some of the mortgages had heft fees (nearly 4k) but the rate was 4.74%, 1% lower than the Bank of England base rate. All pros and cons, just depends how much you can afford each month.
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4.74% will be a stepped tracker mortgage. (Got I'm glad I get a mortgage adviser!).

Year 1 is 4.74%
Year 2 is 5.74%
Year 3 is 6.74%

Then the mortgage will revert to the standard rate (around 7.8%). The catch is that to get out of the morgage before year 5 you have to pay 3%, so you're forced to pay the banks standard rate for 2 years.

Overall its a complete con, but it may pull in a few suckers.
 
daily telegraph on saturday or Sunday times both have best buy tables for mortgages, savings, loans, isas etc. Cheaper than a mortgage advisor and probably more impartial too.
 
bottletop said:
daily telegraph on saturday or Sunday times both have best buy tables for mortgages, savings, loans, isas etc. Cheaper than a mortgage advisor and probably more impartial too.
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My mortgate adviser was free (they get comission from the mortgage lender).

Plus she showed me all the mortgage rates, and allowed me to choose which one I wanted, that matched what we were looking for and could afford.

I'm not saying that there are some shady mortgage advisers, but I was very happy with mine, and I'm sure she's saved me money.
 
Bug One said:
My mortgate adviser was free (they get comission from the mortgage lender).

Plus she showed me all the mortgage rates, and allowed me to choose which one I wanted, that matched what we were looking for and could afford.

I'm not saying that there are some shady mortgage advisers, but I was very happy with mine, and I'm sure she's saved me money.
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True, but somewhere along the line we the customer have to pay for it.
 
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