Mortgage Rate Rise.

[Two Gun Bob]

Factor in what the remortgage fees might be in 5 years as well as any increase in rate 5 years on.

Never considered this so good call Dennis.
What would be useful is to know the added costs per 1% interest increases of 100k over the five year initial period.
Also will employement in future years be enough to service future increase.
But as the song goes riding high in April shot down in May.

Thats life !

 

[Two Gun Bob]

Take the 10 fella at 2.9%, historically that's a good rate. Peace of mind is worth £50 a month.

If the rates stay kind then a £12 a week insurance premium isn't hard to bear for a 10 year fix.
But no one likes spending more than they need to and there lies the rub !
Three thousand saved plus 1k cashback aint no small figure.

I smell safety like you say and a 10year fix ... ..? .. ?

 

[hilts]

If the rates stay kind then a £12 a week insurance premium isn't hard to bear I guess for a 10 year fix.
But no one likes spending more than they need to and there lies the rub !
Three thousand saved plus 1k cashback aint no small figure.

I smell safety and a 10year fix ... ..?

All about luck mate the mrs fixed ours at 6% for 10 years because we were at the limit, they nose dived to current levels. I have not added up how much extra that cost me but it's tens of thousands of pounds. But as rates are still stupidly low it's the right time to fix them. I don't remember the base rate ever being below 2% except the recent anamoly plus you always pay above base anyhow.

At 2.9% how much could you lose and compare that to paying above 5% in 5 years time.

''Tis a gamble so just work out which scenario would be the biggest nightmare for you.

 

[Gaylord du Bois]

If the rates stay kind then a £12 a week insurance premium isn't hard to bear I guess for a 10 year fix.
But no one likes spending more than they need to and there lies the rub !
Three thousand saved plus 1k cashback aint no small figure.

I smell safety like you say and a 10year fix ... ..? .. ?

Would it be portable if you say wanted to move house in that period?

 

[Stockton Heath Blue]

Check if the mortgage is portable - only applies if you sell and buy another property. If you sell or remortgage in the fix period there might be breakage costs. That said, given the low rate on offer and rates expected to rise, you shouldn't find yourself in this position but still worth checking out.

 

[sir baconface]

Neither a borrower nor a lender be.

 

[Two Gun Bob]

Du bois and Mr Blue I am not too sure re portability but it's a consideration.
Inevitably there will be an early payment clause on a decreasing % there always is on these fixed products and fair fooks to them as they have to make a buttie eh.

Same happened to us Hiltsy way over twelve fifteen years back ? and we locked at 5% and regretted it.
I think this time the playing field is different in that everyone appreciates they are about to rise but over the given 5 year period by how much.
Fact of the matter is we have had it good beyond belief and I do remember a long time ago late eighties rates in excess of 13 % on the black wensesday ?

 

[ChicagoBlue]

How long do you expect to be in the house?do you expect to keep it for the full term and own it outright in 21 yrs?

In the States, the average person moves every 7 years, but they have 30 yr mortgages that barely pay off any of the actual mortgage and are heavily interest payments...because they are cheaper and homes have historically gone up in value. When they don't go up, you can end up underwater, owing more than the value of the home...or simply losing all equity value when they move!

How do you sleep at night over money? Do you worry about it? If so, take the longest FIXED RATE you can get, especially if it is only about £1.50 extra per day. How much would you pay for a good night's sleep?!

There are too many unanswered questions (what's your credit profile look like?! That's a biggie that is personal, so I'm certainly not asking!) to actually give you the "best" answer for you, but you should go through at least three companies to get their best deal and compare not only their rates, but their guidance/information.

We are living through a historically low interest rate period, even with recent increases, so "locking in" a fixed rate for an extended period provides you the best protection against any inflation spikes, especially with the looming Brexit dysfunction!

 

[Two Gun Bob]

How long do you expect to be in the house?do you expect to keep it for the full term and own it outright in 21 yrs?

In the States, the average person moves every 7 years, but they have 30 yr mortgages that barely pay off any of the actual mortgage and are heavily interest payments...because they are cheaper and homes have historically gone up in value. When they don't go up, you can end up underwater, owing more than the value of the home...or simply losing all equity value when they move!

How do you sleep at night over money? Do you worry about it? If so, take the longest FIXED RATE you can get, especially if it is only about £1.50 extra per day. How much would you pay for a good night's sleep?!

There are too many unanswered questions (what's your credit profile look like?! That's a biggie that is personal, so I'm certainly not asking!) to actually give you the "best" answer for you, but you should go through at least three companies to get their best deal and compare not only their rates, but their guidance/information.

We are living through a historically low interest rate period, even with recent increases, so "locking in" a fixed rate for an extended period provides you the best protection against any inflation spikes, especially with the looming Brexit dysfunction!

Thanks Chicago and the product isn't for me unless they wish to dig me up for the last payment.
It's for the daughter and her rating is ok to middlesh with only one glitch ages ago on a student nurse loan but sweet now.

The run through we did was with Martin Lewis website and London and country who he appears to endorse.
No fees for protracting the morgage so they must work on commision only.

Seriously I think the lock in at ten is more than worth the unknown quantity.
Daughter does not like change and is a plodder so I expect her to be sat sitting for the long haul.

 

[Two Gun Bob]

The figure I cannot guestimate is how much per annum per one per cent yearly increase is it on 100k ?
Maybe a 1% increase on an interest only would be 1k a year but don't know how to work out a repayment capital plus interest figure ?