Any mortgage/interest rate boffins on here?

Trying to decide whether to go for a 2 year or 5 year fixed mortgage - 4.19% v 4.69% - £1200 cheaper to go for the 2 year one over the 2 years, but obviously if rates go up by then it might backfire.

I know no-one can say for definite what will happen obviously.

Things I've heard suggest due to the state of the economy it's unlikely rates will go up much in such this relatively timescale, but is it worth the risk? £53/month is a lot to pay extra if rates stay the same.

$64m question I guess.

Cheers

 

It's hard to say and an election in the middle of it could have an effect.

 

It's your choice but I would rather have the saving now rather than in the future. Money today is worth more than money in 2 years time, because of inflation, therefore a saving now is worth more than a saving in the future. However, none of us can predict inflation in the same way that none of us can predict interest rates. Judging by savings rates however, the general interest rate trend is downwards.

 

You have got to weigh up any set up fees too. Not many come free of that.

 

Got to also consider how you expect your salary to increase over that time.

 

I'm a mortgage adviser in tarn, it's tough to say what is better without knowing a bit more really.

In my own opinion, I don't think rates will go up in the next 12-18 months, however it wouldn't take long for them to go up beyond the 5 year rate, once they do start to go.

Hope that helps.

If not, see an independent mortgage adviser for some proper advice!

 

Pot luck mate.

I took out a £70,000 10-year fixed rate repayment mortgage 7 years ago. the rates fell shortly afterwards and have remained low ever since. However, since its a 10-year mortgage, the interest is small relative to what you would be paying for a standard 25-year one.

The important thing for me was that I cashed in my 3 rubbush endowments which reduced my borrowing to the point where I could afford the 10-year repayment.

 

ive just fixed on nationwides 4.19% for 2 years deal. prepared to look at it again in 2 years when hopefully the SVR is below 4% still and can sit on that.

 

I'd fix it for 5 years personally, the mortgage rates are low at the moment and they are going to go up, the question is will they within the next two years. Missus is a mortgage advisor, we are due a new one in December, were fixing for the long term if its around the 4%-4.75%. I had a 7.19% mortgage around 5 years ago.

 

Bloody eck, didn't realise the mortgage rates had jumped up so much even though the base rates been static for years. I switched to a HSBC tracker mortgage about 4 years ago. 1.79% above base for life with no fees, no redemptions etc. So currently 2.29% with base being 0.5%

can remember in the early 90's when my rate was 11%. Mortgages were calculated at approx £100 for every £10K borrowed. So £50K mortgage would be £500 per month repayment. People would be screwed if it ever got that out of control again.

 

You can get lower, we're first time buyers requiring 90% loan to value... if you get a 60% one or lower it's a much better rate.

 

Better to go variable than 2 year fix. It will be cheaper, and you can use the spare cash to make overpayments which will save you a fortune in the long run.

 

Hi journo,

Have you looked at Co-op bank? If you can manage to get to a 15% deposit, they have 5 year fix at just under 4% with no fee.