Which type of mortgage? & interest rates
Discussion
My x GF (Who I still talk to) is looking to remortgage. Usually we did a 2 year fixed so we new what our re-payments were each month. I have mentioned this year maybe looking at a tracker that is a 1/4 or 1/2 above Base rate. What are people's thoughts if the person may struggle if they go up to over 6.5%?
With the US been around 5ish and now at 3 and with the UK tending to follow suit would you expect the rates to stay the sameish, go up or down over the next 4 years?
Pre thanks for any advise
With the US been around 5ish and now at 3 and with the UK tending to follow suit would you expect the rates to stay the sameish, go up or down over the next 4 years?
Pre thanks for any advise
I got .49 above base rate and gambled on the tracker.
.49 for the life of the mortgage, not a two year then pay a chunk of money to remortgage again.
Something worth looking it is from two years ago the 'product fees' for setting up the mortgages have increased a lot to make the money from the people remortgaging every two years. Even ones at my bank was a two year deal with a £1699 fee...
.49 for the life of the mortgage, not a two year then pay a chunk of money to remortgage again.
Something worth looking it is from two years ago the 'product fees' for setting up the mortgages have increased a lot to make the money from the people remortgaging every two years. Even ones at my bank was a two year deal with a £1699 fee...
JustinP1 said:
I got .49 above base rate and gambled on the tracker.
.49 for the life of the mortgage, not a two year then pay a chunk of money to remortgage again.
Something worth looking it is from two years ago the 'product fees' for setting up the mortgages have increased a lot to make the money from the people remortgaging every two years. Even ones at my bank was a two year deal with a £1699 fee...
Most banks will now make their money in fee's, 'people' tend to look just at the rate and not what the real cost is on a fixed rate (i.e. taking the fee and dividing it by the number months and add that onto the payments can sometimes give a very surprising figure!).49 for the life of the mortgage, not a two year then pay a chunk of money to remortgage again.
Something worth looking it is from two years ago the 'product fees' for setting up the mortgages have increased a lot to make the money from the people remortgaging every two years. Even ones at my bank was a two year deal with a £1699 fee...
.49 tracker, thats good!! I would do the same if I was looking around, I think the rates will go down first. (difficult to say over next 4 years though!)
Fixed rates IMO are great if you want to know exactly how much you will pay each month and never have to worry about the rates going up and not worried if they go down as you have had the stability each month.
I would go for a tracker and then watch what is going on and maybe go for a fixed rate if it looked like rates were going to go up drastically.
Always a gamble, you just have to do what feels right for you at the time.
HTH
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