Interest rates - mortgage - what to fo?

[philv]

Hi

Remortgage time,

I have choice of 3 mortgages

Fix for 5 years at 2.89 - 1700 fee
Fix for 7 years at 3.59 - 400 fee
Fix for 10 years at 3.99 - 300 fee

After looking at the fees -

The 7 year is cheaper than the 10 yr if interest rates go up less thn 1 percent before i have to remortgage again in 7 years.
The 5 year is cheaper than the 10 yr if int rates goe up less than 2 percent before i have to remortgage again in 5 years.

So - which to take?

Will interest rates be 1 percent higher in 5 years?
Will they be 2 percent higher in 7 years?

Any idea?

[BoRED S2upid]

philv said:

Will interest rates be 1 percent higher in 5 years?



Will they be 2 percent higher in 7 years?

Yes.

No.


Ofcourse if I knew this for certain im sure i'd be able to bet on the outcome and make myself a gazillion dolla. Im sure not even the BOE know the answer but in 5 years time we could have a new set of "leaders" running the country and who knows what they will do.

[philv]

This article seems to think no change for 4 years -
http://www.thisismoney.co.uk/money/news/article-16...

[Sarnie]

Whats the LTV?

[philv]

75 percent

[spikeyhead]

How much are your wages likely to rise in the next five years?

[-Z-]

Mind if I ask who this is with?

I've been quoted 3.69% for a 5 year fix on 75% LTV.

[philv]

Chelsea

Ing direct are 500 quid cheaper over 5 yeRs with 5 yr fixed 3,14
Because fees are less - but they wont take my eR ings proof

So ing direct 3.14 - 495 fees
Then chelsea 2.89 - 1695 fees
Both 75 percent ltv - 5 yr fixed

[-Z-]

Thanks.

We tried to get a 10yr fixed via N&P at a similar good rate but we were told that because we had a business loan of £214k in our names (wife and I but not secured on a property) we would not be able to apply. Seems a strange reason no?

We opted for 5 yrs because you essentially cannot easily move house during the fixed term.

[Sarnie]

philv said:

Chelsea

Ing direct are 500 quid cheaper over 5 yeRs with 5 yr fixed 3,14
Because fees are less - but they wont take my eR ings proof

So ing direct 3.14 - 495 fees
Then chelsea 2.89 - 1695 fees
Both 75 percent ltv - 5 yr fixed

I have access to a 2.99% 5 Year fixed with a £900 arrangement fee or 3.09% with a £400 fee, drop me a line if it's of interest

[Baron Greenback]

Slightly different question with rates being so low and saving getting so poor is it worth transferring the cash isa the to pay back the mortgage quicker. I don't have that much in cash isa 17k and 65k mortgage or the ability to constantly paying in the max limit each year.

[HIS LM]

I have been quoted these rates repayable over a 19 year term are they competitive ?

The rate will always be 5.39% Fixed for 2 years:

A Purchase Price of £425K and a Mortgage of £382,500 will be £2684.24 pcm and then revert to their SVR which is currently 3.99% = £2427.52 pcm

A Purchase Price of £450K and a Mortgage of £405K will be £2842.13 pcm and then revert to their SVR which is currently 3.99% = £2569.95 pcm

A Purchase Price of £500K and a Mortgage of £450K will be £3157.93 pcm and then revert to their SVR which is currently 3.99% = £2854.79 pcm

Feel free to PM me if you prefer

[lainchers]

Have a look at the HSBC rate. They have a tracker, fees free, no redemption and can jump any time.

APR is 2.7 now that is definitely worth a punt.

In all seriousness are rates going to jump up soon. 5 yrs at .5
Makes me the no...

[Sarnie]

HIS LM said:

I have been quoted these rates repayable over a 19 year term are they competitive ?

The rate will always be 5.39% Fixed for 2 years:

A Purchase Price of £425K and a Mortgage of £382,500 will be £2684.24 pcm and then revert to their SVR which is currently 3.99% = £2427.52 pcm

A Purchase Price of £450K and a Mortgage of £405K will be £2842.13 pcm and then revert to their SVR which is currently 3.99% = £2569.95 pcm

A Purchase Price of £500K and a Mortgage of £450K will be £3157.93 pcm and then revert to their SVR which is currently 3.99% = £2854.79 pcm

Feel free to PM me if you prefer

you have PM

[Terminator X]

lainchers said:

In all seriousness are rates going to jump up soon. 5 yrs at .5
Makes me the no...

No chance, the UK is fked for at least another term of Govt.

TX.

[fid]

Terminator X said:

No chance, the UK is fked for at least another term of Govt.

TX.

And might be more fked if inflation ticks up and interest rates aren't used to keep it under control.

[davepoth]

Baron Greenback said:

Slightly different question with rates being so low and saving getting so poor is it worth transferring the cash isa the to pay back the mortgage quicker. I don't have that much in cash isa 17k and 65k mortgage or the ability to constantly paying in the max limit each year.

Your savings rate is probably lower than your mortgage rate, so it likely makes sense to pay off the mortgage assuming there's no early repayment penalty.

[Baron Greenback]

lainchers said:

Have a look at the HSBC rate. They have a tracker, fees free, no redemption and can jump any time.

APR is 2.7 now that is definitely worth a punt.

In all seriousness are rates going to jump up soon. 5 yrs at .5
Makes me the no...

That's the mortgage I am signing up for this Friday 2.14 percent above BoE fee free seems a good deal to me as I only want it for 5 years till we move house due to company move!

[mcbook]

I think the first thing we need to accept here is that no one knows what the BofE rate will be in five or ten years time. You can have a decent guess with a short-term prediction but anything at 5 or 10 years is mental.

I'd say it's about personal circumstances: does it suit your personal/family needs to have a fixed payment for 10 years? Personaly, I think 10 years is too far into the future to make a call with any certainty.

[Lawrence5]

Worth looking at bandings with the bank.... We couldn't quite hit the next ltv band so they said not to go fixed but to stay in a tracker overpay and in 6 months time we'd be offered better deals