Mortgage decision time - help!

R

Robder

Active Member
I'm beginning to bore myself with this but it's officially the only grown-up decision I'm going to have to make next year, and it's an important one.

I'm not much of a gambler so a variable rate mortgage has never been my bag.

However...given the state of the bank of England, credit crunches and house price falls, it's unlikely that there's going to be a rate hike again in the near future is there? (is there? :?)

So...quick poll. Please tell me if you think this is a good time to have a variable rate mortgage for the next two years.

Thanks! 8)
 
Robder said:
I'm beginning to bore myself with this but it's officially the only grown-up decision I'm going to have to make next year, and it's an important one.

I'm not much of a gambler so a variable rate mortgage has never been my bag.

However...given the state of the bank of England, credit crunches and house price falls, it's unlikely that there's going to be a rate hike again in the near future is there? (is there? :?)

So...quick poll. Please tell me if you think this is a good time to have a variable rate mortgage for the next two years.

Thanks! 8)
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mate, having been on a tracker for the last 2 and a half years, and seen my payments increase by approx £200 per month since we started, It would be tempting to say go for a fixed rate, saying that, we would be in for a shock come June when we revert back to the normal rate........I would therefore say that you should go for another variable but negotiate a good starting rate :) does that help?
 
Yes - just need as many opinions as possible so that if I make the wrong decision I can stand up and say it wasn't just me being stupid. :lol:
 
Straight onto a 2 year fixed rate.

This rate decrease, or any other in the next 6 months, will have minor impact on the fixed rates being offered as the cost of borrowing is still going to be high due to the credit crunch.

With a 2 year fixed rate, you'll know where you are at and if the rates do drop dramatically then you'll only be pleaseantly surprised when you renew in two years.

the truth is no fcker knows so sure how much the credit crunch will bite, so batten down the hatches with a decent fixed rate if you can get one.
 
MARKB said:
Straight onto a 2 year fixed rate.

This rate decrease, or any other in the next 6 months, will have minor impact on the fixed rates being offered as the cost of borrowing is still going to be high due to the credit crunch.

With a 2 year fixed rate, you'll know where you are at and if the rates do drop dramatically then you'll only be pleaseantly surprised when you renew in two years.

the truth is no fcker knows so sure how much the credit crunch will bite, so batten down the hatches with a decent fixed rate if you can get one.
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2nded
 
agree with mark.

rob, you may also find that the longer you fix for, the better the rate. so compare the 3 years+ rates with the 2 year rate to see what difference there is.

if there is 0.25% difference or more, it'll probably be worth it to commit for a bit longer.

i know halifax have 10 and 20 year fixed rates!! 8O
 
jjinit said:
hey man dont shoot the messenger, just quoting what I read in City AM!! :lol:
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:roll::roll: it's punks like you that have caused this whole credit crunchie, you and your tory boy city chums with oxon after their name and all beaked up funded by daddy's benjamins.........*tuts*
 
grego said:
:roll::roll: it's punks like you that have caused this whole credit crunchie, you and your tory boy city chums with oxon after their name and all beaked up funded by daddy's benjamins.........*tuts*
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oi soft lad, my old boy was jobless for a few months not so long ago, I was sending my parents money for food etc, my beak habit is or was entirely self funded my family are hardly middle class :spank: :lol:

(i say "was" not because i no longer pay for it, but because I hardly ever do it nowadays) :evil:
 
jjinit said:
oi soft lad, my old boy was jobless for a few months not so long ago, I was sending my parents money for food etc, my beak habit is or was entirely self funded my family are hardly middle class :spank: :lol:

(i say "was" not because i no longer pay for it, but because I hardly ever do it nowadays) :evil:
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you response makes it sound like you are that which i said in jest! 8O:lol:;)
 
jjinit said:
"analysts" are predicting rates of 4.5% by the end of 08.
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I wish I could believe and trust that.

The lowest fixed rate Nationwide offer at the mo is 5.69 (approx £60 monthly increase for me which isn't too bad)...but it also means that they've lowered the variable rate in line with the BoE but not the fixed rate. Anyone know if they'll follow suit with this by mid March?
:?
 
If you know that you can afford the fixed rates on offer then take them and you won't be disappointed.

I just got a great deal on a tracker with C&G (0.17 above the base rate) but I only have a small mortgage and I can afford to take a bit of a punt on the interest rates falling. The other benifit to this deal is that it is for the life of the mortgage and with no tie-ins. If I get a wiff of a spike in the rates in 3,4 or 5 years I can choose to move on to a fixed. If things stay the way that they are for the next fifteen years I might just stay where I am without having to go onto their normal rate.

It's worth speakig to your advisor and taking a look.
 
Hello there. Sorry if I repeat anything said above but:

1 - making an assumption here, but I do not think you are massively financialy risk prone (apols if thats incorrect)

2 - even if they do go down, there is no guarantee that the banks will pass it on

3 - so many variables at play, that Mr Rumsfelds dictum of known unknowns becomes relevant i.e we have a good handle on what we can't predict. BUT we can affect the outcome to a point by limiting exposure.

So! Go for fixed. Defo.
 
Also take into account your work and outgoing`s, eg if your job is the same hours / same pay / same % rise every year, stable job, eg You could not take any more £ home any way, fixed may be the best for you, but have a look around for the best early redemption fee`s / clause`s, That way if the rate did fall dramatically, It may be better to swap,
Have a good one
Tim
 
MARKB said:
Straight onto a 2 year fixed rate.

This rate decrease, or any other in the next 6 months, will have minor impact on the fixed rates being offered as the cost of borrowing is still going to be high due to the credit crunch.

With a 2 year fixed rate, you'll know where you are at and if the rates do drop dramatically then you'll only be pleaseantly surprised when you renew in two years.

the truth is no fcker knows so sure how much the credit crunch will bite, so batten down the hatches with a decent fixed rate if you can get one.
Click to expand...

3rd-ed!
 
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