Home Owners

[Harold_Shand]

4.49% for the first year, then 5.59% for the next 4 years. So a 5 year fixed rate. Too long to be tied up, or good protection for the years to come?
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Harold_Shand's theory might be the best explanation.

[JonB]

When I eventually get a mortgage, i'll try and get a fixed rate if I can, even if interest rates start dropping, I like to know exactly how much is going out every month, so you can budget by that.

If the interest rates rise while you are on the fixed rate, then obviously you are in a win-win.

Until your fixed rate of 5.59% ends in Jan 2013 and is back on flexible at 9%.

Is it possible to get fixed rate for any longer than 5 years?
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[syl]

Yes, you can get fixed rates for more than five years.

Personally, I prefer a tracker mortgage (a mortgage that is tied to the bank of England base rate + X%). You can often get discount trackers for a few years (sometimes almost equal to the base rate). I prefer trackers as a few years ago, when the BOE rate was last falling, not all banks/building societies reduced their standard rates as much nor as quick (but they always put them up really quickly).
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[Harold_Shand]

5 years is the longest I've come across.

Quite a tough desicion. Loads of choice, but you end up paying the same amount back, except they all dress it up differently.

Anyone know anything about Bristol & West? I've had a look at Ciao and Dooyoo, but ppppppfffff.
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BCF's 6th favourite poster 2009-2010

Harold_Shand's theory might be the best explanation.

[JonB]

Didn't B+W get taken over years ago? Remember they used to have a building society in town, but it closed down about 5-10 years ago.
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Be careful whose advice you buy, but, be patient with those who supply it. Advice is a form of nostalgia, dispensing it is a way of fishing the past from the disposal, wiping it off, painting over the ugly parts and recycling it for more than it?s worth.

[Harold_Shand]

Owned by the Bank of Ireland.
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BCF's 6th favourite poster 2009-2010

Harold_Shand's theory might be the best explanation.

[shonajoy]

What are the fees? Are you tied in? Its thought the bank of england rate will go down my half or three quarter a percent soon, says OH.

We just waded through all of this stuff, OH says ING were the best - no tie in, no fees, you can overpay, completely flexible, and our rate at the mo is 6.1%.

Fees can be the deal killer though.
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Shona

[TheShaggyDA]

Skipton Building Society offer 10 years fixed rate, and I did hear that Ulster Bank were planning to offer a fixed rate for the life of the mortgage product, but don't know whether it was launched or not.
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[WildGoose]

i'd probably bite your arm off for a fixed rate for the life of the mortgage.

Then your only worry is maintaining your current salary, and youre away.

Can't understand why anyone trumps for a tracker or other such fluctuating rates, as you will be clinging to the radio once a month to see if they are gonna sting you for more or less from then on. Not my idea of fun.

Incidentally, i'd like to understand more about mortgages, mine was never really properly explained, despite the promise from the mortgage advisor that it would be (last time we go to them). If anyone has an idiots guide to doing the sums that would be cool.

You can read all the documentation that comes with the mortgage till you are blue in the face, but it never seems to make all that much sense. I would not consider myself a dunce when it comes to maths, as long as things are properly explained.

Seems to me that they want you to know as little as possible, so they can screw you for the maximum amount and you wouldn't know better. I may be in a position soon to pay off a semi decent sized chunk of the mortgage but got no idea whether it would be better to do so, or to stick it into savings or some other financial jiggery pokery. Don't want to just pay off X amount of interest, want to actually reduce the sum that we borrowed.
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[Itchy]

anedotally, and on ITV recently too...

rate cuts are not always passed onto the customers a bit ago there was a .25% cut , the variable trackers cut their rates by something like 0.03%.
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[Mrs Kickstart]

Hi

For fixed rates on a long term average you will pay more than on a variable.

If the rates go up you gain if the rates go down the bank gains. The rates are going to in the long term work in the banks favour. But it will depend on the rayes during your fixed term.

In return for the possibility of you paying more iver tyhe five years you know exactly how much you will have each month and wont get hit with a really big hike.

So it really depends how much flexibity you have in your month income to asorb the possible increases (which might be very high) in return for getting possible gains.

Regards
C
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[Harold_Shand]

Went for the 5 year fixed. Going to do it over 35 years, then change it to a 25/20 years in 2012.

Then die.

Wicked.
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BCF's 6th favourite poster 2009-2010

Harold_Shand's theory might be the best explanation.

[kitty kat]

Thank goodness I don't have a mortgage to worry about, it all sounds too complicated from when I last had one. My house was bought outright as I downgraded so I now have no worries regarding the house and am able to work part-time, giving me more biking time
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[teabag]

Signed up for a 25 year fixed rate at 4.98% a year ago with the Kent Reliance building society.
25 year mortgages are still available from them.

https://www.krbs.co.uk/mortgages.aspx


While the mortgage rate is below the savers rates, I can put money in the bank. If the savers rates drop below 4.98% I can pay some additional towards the mortgage, thus hedging the risk - assuming I have free capital to play with - which I don't (wife and 3 kids).
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[iooi]

Did a 5 year deal a while back and it payed off, came out of it better off due to a increase in the rate. But as ever its a gamble.
Main gain is knowing what you will be paying for the next 5 years, rather than on a variable one.

If i had chance i would go for one thats fixed over the full life of the deal. Total stability.
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[syl]