Mortgage. To fix or not?
Discussion
Looking for a mortgage as a first time buyer.
What would people suggest? A fixed 2 year term at a slightly higher interest rate (3.29% or so) or to go for a 'discount' one where there's a discount on the bank's initial rate (2.48% for 2 years)? Both are HSBC products (and yeah - I won't be using their conveyancers!).
Difference in monthly payments works out to about £100 a month (£900ish on discount, £1000ish on variable), but equally I'm gambling that rates won't go up too much on the non fixed one!
What would people suggest? A fixed 2 year term at a slightly higher interest rate (3.29% or so) or to go for a 'discount' one where there's a discount on the bank's initial rate (2.48% for 2 years)? Both are HSBC products (and yeah - I won't be using their conveyancers!).
Difference in monthly payments works out to about £100 a month (£900ish on discount, £1000ish on variable), but equally I'm gambling that rates won't go up too much on the non fixed one!
brickwall said:
I'd definitely fix right now. Bizarrely fixed-rate mortgage rates have fallen in the last couple of months, despite everyone knowing the base rate is only going to go one way (it's just a question of when).
Santander were offering 1.94% 2-year fix on 75% LTV; I haven't seen anything better recently.
Lenders were slashing rates & fees in Q4 to hit lending targets for the end of 2014........Santander were offering 1.94% 2-year fix on 75% LTV; I haven't seen anything better recently.
And, there are better rates available than what Santander are offering
brickwall said:
I secured my mortgage at the end of Q3, and the best I could find was 2.34% on the same deal as above. Slightly annoying...
I can imagine!The rate reductions really surprised me too, some lenders even took away their upfront booking fees to do anything they could to give them the edge.........
Its a lottery and all down to your attitude to risk and uncertainty
The first time I fixed it was for 5 years and my intent was to have predictable repayments during a period when the kids were young and our finances potentially unpredictable - rates initially went up leaving me smug then tanked leaving me feeling a little hard done by, but nevertheless at the time I feel I made the right decision
Subsequently I have had 2 further fixes for 2 and 3 years respectively
Not the best rates but again I wanted stability so was happy
The current deal runs out in 3-4 months
I will fix that for longer as not only will it hopefully be the last time but my gamble is that rates will be on the up after the election
Im old enough to remember friends with mortgage rates of 17% which may influence my own attitude to risk
Cheers
Sarnie said:
Du1point8 said:
I just fixed my HSBC mortgage for 2.90% or so for 5 years, bastid thing is still going through as spanish bank is dragging their heels too much at the moment.
Been trying to complete it since September.
How can your current lender be dragging their heels??Been trying to complete it since September.
Du1point8 said:
HSBC is for the remortgage, Spanish bank has the current mortgage, Spanish bank didnt seem to want to communicate with HSBC as its a simple case of switch mortgage and away I go with HSBC, but nope, still waiting.
But waiting for what exactly?Banks do not have a need to contact each other at all, the solicitor just requests a redemption figure from current lender, sets completion date, requests funds from new lender and sends to the current lender?
Sarnie said:
Du1point8 said:
HSBC is for the remortgage, Spanish bank has the current mortgage, Spanish bank didnt seem to want to communicate with HSBC as its a simple case of switch mortgage and away I go with HSBC, but nope, still waiting.
But waiting for what exactly?Banks do not have a need to contact each other at all, the solicitor just requests a redemption figure from current lender, sets completion date, requests funds from new lender and sends to the current lender?
They (the conveyancers) are getting another phone call off me tomorrow as its been way too long... someone is lying about the lack of communication here and I will find out which one.
Du1point8 said:
Not a clue, everything has been paid, everything has been proven by myself, as far as Im aware there is nothing wanting off me, when I talk to anyone, they tell me Santander haven't sent something back about the current mortgage yet...
They (the conveyancers) are getting another phone call off me tomorrow as its been way too long... someone is lying about the lack of communication here and I will find out which one.
Something definitely doesn't add up.....the last bit should just be a formality.....I assume you've had your formal mortgage offer?They (the conveyancers) are getting another phone call off me tomorrow as its been way too long... someone is lying about the lack of communication here and I will find out which one.
Sarnie said:
Du1point8 said:
Not a clue, everything has been paid, everything has been proven by myself, as far as Im aware there is nothing wanting off me, when I talk to anyone, they tell me Santander haven't sent something back about the current mortgage yet...
They (the conveyancers) are getting another phone call off me tomorrow as its been way too long... someone is lying about the lack of communication here and I will find out which one.
Something definitely doesn't add up.....the last bit should just be a formality.....I assume you've had your formal mortgage offer?They (the conveyancers) are getting another phone call off me tomorrow as its been way too long... someone is lying about the lack of communication here and I will find out which one.
Valuation done
Verified the payments using salary and savings
Mortgage offer done and signed
Proved who I was.
Paid insurance in case mortgage being transferred is slightly higher due to date it gets transferred.
Paid all other fees.
Sat waiting now.
We've just bought our first house and fixed for 3 years at 2.9% (75%LTV)
Considered going variable but as a first mortgage I'd like it to be stable and allow us to find our feet a bit and also the rates are only going to go one way that I can see.
It didn't half upset some friends of ours who bought a few months earlier a few miles down the road for similiar money who are on 4.5% fixed.
Can't wait to move in now.
Considered going variable but as a first mortgage I'd like it to be stable and allow us to find our feet a bit and also the rates are only going to go one way that I can see.
It didn't half upset some friends of ours who bought a few months earlier a few miles down the road for similiar money who are on 4.5% fixed.
Can't wait to move in now.
Ynox said:
Looking for a mortgage as a first time buyer.
What would people suggest? A fixed 2 year term at a slightly higher interest rate (3.29% or so) or to go for a 'discount' one where there's a discount on the bank's initial rate (2.48% for 2 years)? Both are HSBC products (and yeah - I won't be using their conveyancers!).
Difference in monthly payments works out to about £100 a month (£900ish on discount, £1000ish on variable), but equally I'm gambling that rates won't go up too much on the non fixed one!
What are the fees on each product?What would people suggest? A fixed 2 year term at a slightly higher interest rate (3.29% or so) or to go for a 'discount' one where there's a discount on the bank's initial rate (2.48% for 2 years)? Both are HSBC products (and yeah - I won't be using their conveyancers!).
Difference in monthly payments works out to about £100 a month (£900ish on discount, £1000ish on variable), but equally I'm gambling that rates won't go up too much on the non fixed one!
You should factor them in over the term to get the true cost.
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