Nailing down the Mortgage Time

Nailing down the Mortgage Time

Author
Discussion

BatForcePC

Original Poster:

442 posts

205 months

Monday 27th June 2016
quotequote all
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...

So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!

I know there are experts on this section so was wondering if this is the best out there?

Would like to get this sorted this week.

PS £450k house with a LTV of 35%.

rsbmw

3,464 posts

104 months

Monday 27th June 2016
quotequote all
Talk to Sarnie!

Sarnie

8,025 posts

208 months

Monday 27th June 2016
quotequote all
BatForcePC said:
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...

So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!

I know there are experts on this section so was wondering if this is the best out there?

Would like to get this sorted this week.

PS £450k house with a LTV of 35%.
Go with that I reckon! thumbup

BatForcePC

Original Poster:

442 posts

205 months

Monday 27th June 2016
quotequote all
Sarnie said:
Go with that I reckon! thumbup
Awesome, thanks Sarnie, mailed you before I saw your reply, feel free to ignore!

Cheers

BatForcePC

Original Poster:

442 posts

205 months

Monday 27th June 2016
quotequote all
Bish bash bosh...done... fixed for 5 years!

Living the dream...

RedWhiteMonkey

6,806 posts

181 months

Monday 27th June 2016
quotequote all
BatForcePC said:
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...

So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!

I know there are experts on this section so was wondering if this is the best out there?

Would like to get this sorted this week.

PS £450k house with a LTV of 35%.
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.

BatForcePC

Original Poster:

442 posts

205 months

Monday 27th June 2016
quotequote all
RedWhiteMonkey said:
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.

I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!

RedWhiteMonkey

6,806 posts

181 months

Monday 27th June 2016
quotequote all
BatForcePC said:
RedWhiteMonkey said:
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.

I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
Well, whatever happens I'm pretty sure you've done the right by fixing for five years.

JJ55

648 posts

114 months

Monday 27th June 2016
quotequote all
We're doing our remortgage at the moment & also going for a 5 year fixed rate to be safe. Our broker says most people are picking this at the moment.

bmwmike

6,918 posts

107 months

Tuesday 28th June 2016
quotequote all
Same here 2.04% fixed for 5yr with HSBC. Really can't imagine it being much lower than that! Currently trying to get an extra 50k at that rate.

mike74

3,687 posts

131 months

Tuesday 28th June 2016
quotequote all
BatForcePC said:
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.

I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
Drop interest rates and enhance liquidity to stimulate the economy... like they've been attempting for the last 8 years and failing miserably.

As others have said, we're now far more likely to see increasing I.r's in order to fight inflation and defend a weakening pound.

Jockman

17,912 posts

159 months

Tuesday 28th June 2016
quotequote all
mike74 said:
BatForcePC said:
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.

I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
Drop interest rates and enhance liquidity to stimulate the economy... like they've been attempting for the last 8 years and failing miserably.

As others have said, we're now far more likely to see increasing I.r's in order to fight inflation and defend a weakening pound.
Indeed. Rate cuts and QE are classic recession tactics, if required.

sealtt

3,091 posts

157 months

Tuesday 28th June 2016
quotequote all
More likely than increasing base rates will be lender spread over the base rate, meaning mortgage rates will go up even if base rates stay flat (or even go down). But all this is fairly speculative as it's highly dependent how the next 6-18 months play out.

Either way I'd be locking in that 5yr 2.09% for sure to protect against instability.

C0ffin D0dger

3,440 posts

144 months

Tuesday 28th June 2016
quotequote all
There is some talk of the base rate going to 0%, as to whether this will really happen or not is anyones guess.

As for this being passed onto us mere mortals, well I for one am on a tracker that is 1.5% above base so if the rate does drop to 0% I'll be getting a 0.5% cut in my mortgage payments. Admittedly it's a bit of a gamble being on a tracker especially in these uncertain times, just have to see what happens but need to be prepared to jump ship to a fixed.

Jockman

17,912 posts

159 months

Tuesday 28th June 2016
quotequote all
sealtt said:
More likely than increasing base rates will be lender spread over the base rate, meaning mortgage rates will go up even if base rates stay flat (or even go down). But all this is fairly speculative as it's highly dependent how the next 6-18 months play out.
So people on a base rate tracker may see rates go up even if the base rates go down?

sealtt

3,091 posts

157 months

Tuesday 28th June 2016
quotequote all
Jockman said:
So people on a base rate tracker may see rates go up even if the base rates go down?
For people already on a base rate tracker (with the spread over base rate already locked in), then base rates going down would mean their mortgage would go down too. My comment was just about people taking out new mortgages in the future. Purely speculative anyway, but a risk I'd protect against if I could.

Ginge R

4,761 posts

218 months

Tuesday 28th June 2016
quotequote all
The overnight swap rates are interesting now and firming, post vote. If we had a 0.25% drop soon, I wouldn't be surprised.

http://www.bankofengland.co.uk/statistics/pages/yi...

atom111

1,035 posts

224 months

Tuesday 28th June 2016
quotequote all
I did a fix for 5 years sorted it two months ago as Lender allows to pre-booking a deal up to three months before current deal ended, that comes into affect 1st July, not as good as OP's rate but I was happy it was fee free and with same lender, stress free change.

Ginge R

4,761 posts

218 months

Thursday 30th June 2016
quotequote all
Ginge R said:
The overnight swap rates are interesting now and firming, post vote. If we had a 0.25% drop soon, I wouldn't be surprised.

http://www.bankofengland.co.uk/statistics/pages/yi...
Carney signals a drop in interest rates likely. Greece notwithstanding, the markets will probably go Risk on (IMHO) fo a bit.

http://www.telegraph.co.uk/business/2016/06/30/fts...

Lipper now predicting similar in the US.

http://lipperalpha.financial.thomsonreuters.com/20...

Ozzie Osmond

21,189 posts

245 months

Thursday 30th June 2016
quotequote all
Ginge R said:
Carney signals a drop in interest rates likely.
Interest rates have fallen from 6% in the 1990s to ZERO point five percent since 2008. Anyone, including Mark Carney, who thinks a further reduction from ZERO to ZERO will make any difference whatsoever is IMO living in a dream world.