Remortgage - Fix for How Many Years?
Discussion
Jockman said:
Had a quick look at HSBC and First Direct 10 year products at the weekend. Decent offerings but rates would still need to rise a fair bit to make it worthwhile.
As to your other point above, I would add to the other replies the possible changes in your own circumstances such as a redundancy, death of the main breadwinner, divorce etc
Redundancy feather illness etc would clearly impact any mortgage product if you are fixed. As to your other point above, I would add to the other replies the possible changes in your own circumstances such as a redundancy, death of the main breadwinner, divorce etc
Also in that situation you'd be thankful you do have a fixed cost for the long term without the need to then go out and get a new mortgage which would be vastly less affordable re the banks new tests.
So looks like 5 years might be a good idea. They can't really go any lower, I know Japan had 0% and even negative interest at some point I believe but I think that's highly unlikely to happen here. I've contacted my mortgage broker and interest rate seems to vary by 1% max between 2 and 5 year deals which isn't that much difference per month. In fact my last 2 year deal was fixed at 1.84 I believe and I can now get a 5 year deal for almost the same rate.
I can see some turbulent times ahead for the economy so probably better to be safe than sorry.
I can see some turbulent times ahead for the economy so probably better to be safe than sorry.
I'm on 3.04% offset but it's an old one where I can draw back to its full original value up to the last but one day. So change the scheme lost that option.
Only kept that while we do the big extension but once finished I'd quite like to access these much lower rates. (sarnie I'll be in contact).
Only kept that while we do the big extension but once finished I'd quite like to access these much lower rates. (sarnie I'll be in contact).
covmutley said:
Also looking to move from a 2 yr to 5 yr fix in October.
As said, they cant go much lower, so I can only lose by a very little if they do, and are more likely to go up.
Also, another 2 yr fix would end around Brexit I think? Possible shenanigans with that?
This was my thinking, the economy is already looking a bit shaky, Brexit is bound to have an impact and a 2 year fixed could put you smack bang in the middle of all that uncertainty. 5 years should be enough time that's it's all blown over by that point (hopefully)As said, they cant go much lower, so I can only lose by a very little if they do, and are more likely to go up.
Also, another 2 yr fix would end around Brexit I think? Possible shenanigans with that?
London424 said:
Don't ask me as i'm the guy who 4 years ago got a 5 year fix 'because interest rates will have to go up soon'.
Again, not an expert, but If there is a mess due to Brexit then interest rates aren't going to be going up are they?
Possibly but they can't go any lower unless they start paying us to borrow money! Again, not an expert, but If there is a mess due to Brexit then interest rates aren't going to be going up are they?
We were in similar situation couple of months ago and decided to go with 5 years fix at 1.99%. For me key point were certainty of payment, no mortgage fee (and form Filling etc) in 2 years and in case something goes wrong with job in 2 years I won't go back on svr (I have one year worth of buffer). There were some cheaper rates available but I went with a product which had no early repayment charges so I can make as many overpayment as I can and want. If interested, the product is from Coventry building society.
Good luck
Good luck
Jockman said:
Yipper said:
Fix 5 years and overpay. Get the debt cleared while money is cheap.
Variable product and overpay even more?Yipper said:
Fixing gives certainty. When you have certainty in the future, you can plan better. And you can be more confident (but not reckless). Fixing a rate is an investing mindset, while variable is a gambling mindset.
It's a shame you cannot have part fixed part variable and be able to move the ratio of those two elements around as you see the market risk or not or whatever suits your investment strategy. Yipper said:
Jockman said:
Yipper said:
Fix 5 years and overpay. Get the debt cleared while money is cheap.
Variable product and overpay even more?That's certainly an interesting angle, especially with some of the tales above.
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