Mortgage Advice

[Citizen of Legoland]

Bump

Any advice would be welcome on these options , cheers.

1.49% 2 year fixed this one does have a Virgin product fee of £995 which can be added approximately £769 per month

1.82% 2 year fixed no fee approximately £775 per month


1.69% 3 year fixed this one does have a Virgin product fee of £995 which can be added approximately £778 per month

1.89% 3 year fixed no fee approximately £778 per month


1.39% 5 year fixed this one does have a Virgin product fee of £995 which can be added approximately £765 per month

1.70% 5 year fixed no fee approximately £770 per month

2.39% 7 year fixed no fee approximately £799 per month

Biggest question for me is early redemption fees and overpayments allowed. I can't see mortgage rates being much below what we have now so the yearly difference between 1.39% and 2.39% is just £400/year or £2800 over the 7 yr term. I locked in at 2.09% 2 yrs ago on a 5 yr term - with large overpayments allowed, I never think back about the lower terms I could have had, just happy I don't need to keep reviewing it every year.

 

[supercity88]

Bump

Any advice would be welcome on these options , cheers.

1.49% 2 year fixed this one does have a Virgin product fee of £995 which can be added approximately £769 per month

1.82% 2 year fixed no fee approximately £775 per month


1.69% 3 year fixed this one does have a Virgin product fee of £995 which can be added approximately £778 per month

1.89% 3 year fixed no fee approximately £778 per month


1.39% 5 year fixed this one does have a Virgin product fee of £995 which can be added approximately £765 per month

1.70% 5 year fixed no fee approximately £770 per month

2.39% 7 year fixed no fee approximately £799 per month

1.70% 5 year fixed sounds like the perfect length of time: low interest scenario.

Just check overpayments etc.

 

[denislawsbackheel]

If I was buying a property now, and being old enough to remember inflation, I’d want the security of the 7 year fixed option.

 

[meltonblue]

If I was buying a property now, and being old enough to remember inflation, I’d want the security of the 7 year fixed option.

Ditto, I’d fix for as long as possible with the rates what they are now.

 

[bugsyblue]

Bump

Any advice would be welcome on these options , cheers.

1.49% 2 year fixed this one does have a Virgin product fee of £995 which can be added approximately £769 per month

1.82% 2 year fixed no fee approximately £775 per month


1.69% 3 year fixed this one does have a Virgin product fee of £995 which can be added approximately £778 per month

1.89% 3 year fixed no fee approximately £778 per month


1.39% 5 year fixed this one does have a Virgin product fee of £995 which can be added approximately £765 per month

1.70% 5 year fixed no fee approximately £770 per month

2.39% 7 year fixed no fee approximately £799 per month

Personally I'd go with the 5 year 1.39% option. This is purely based on my assumption that once we are out of a lockdown and the economy gets back on its feet, the BoE will raise interest rates slightly. Plus I like to know exactly what I have to pay each month.

The other option I'd consider would be a tracker mortgage for the next couple of years as I think interest rates will stay very low in the short term.

 

[denislawsbackheel]

Personally I'd go with the 5 year 1.39% option. This is purely based on my assumption that once we are out of a lockdown and the economy gets back on its feet, the BoE will raise interest rates slightly. Plus I like to know exactly what I have to pay each month.

The other option I'd consider would be a tracker mortgage for the next couple of years as I think interest rates will stay very low in the short term.

You have to factor in govts may choose to use inflation as a tool to help reduce the debt.
If the economy recovers I can see bank rates of 5%+ being a real possibility by then.
No way would I countenance a tracker mortgage. Mortgages will not get any cheaper than now.
To those of us who were starting out buying houses forty years ago the last ten years have virtually seen mortgages being free money.

 

[bugsyblue]

You have to factor in govts may choose to use inflation as a tool to help reduce the debt.
If the economy recovers I can see bank rates of 5%+ being a real possibility by then.
No way would I countenance a tracker mortgage. Mortgages will not get any cheaper than now.
To those of us who were starting out buying houses forty years ago the last ten years have virtually seen mortgages being free money.

I agree, that's why I advocated for the 5 year fix. However my hunch is they won't raise interest anywhere near 5% this year or next. Beyond that I 100% agree with you and certainly think 4-5% will be the rate by 2026 or 2027.

 

[Gareth Barry Conlon]

Bump

Any advice would be welcome on these options , cheers.

1.49% 2 year fixed this one does have a Virgin product fee of £995 which can be added approximately £769 per month

1.82% 2 year fixed no fee approximately £775 per month


1.69% 3 year fixed this one does have a Virgin product fee of £995 which can be added approximately £778 per month

1.89% 3 year fixed no fee approximately £778 per month


1.39% 5 year fixed this one does have a Virgin product fee of £995 which can be added approximately £765 per month

1.70% 5 year fixed no fee approximately £770 per month

2.39% 7 year fixed no fee approximately £799 per month

The difference in the costs of these is tiny in comparison to full scale of the repayment. I would suggest you get a good mortgage advisor who will handle the refi for you when the offer period expires. If you go with a bank that allows you to switch on to their best deal when your current one expires then that removes loads of hassle. I would rather 2 years with that sort of Bank than a 5 year deal but where i knew i had to move the mortgage to get another good rate.

PS other things like repayment fees etc should also be looked at - they can easily add up to way more than the difference in the various headline rates.

 

[Onholiday(somemightsay)]

Personally I'd go with the 5 year 1.39% option. This is purely based on my assumption that once we are out of a lockdown and the economy gets back on its feet, the BoE will raise interest rates slightly. Plus I like to know exactly what I have to pay each month.

The other option I'd consider would be a tracker mortgage for the next couple of years as I think interest rates will stay very low in the short term.

In my humble uneducated opinion, that's where I would be looking to...........

 

[denislawsbackheel]

Why?
Mortgages will not go down any further, even if the B o E goes negative.
There is only one way trackers are going.
It’s not like years ago when the interest rate was 9% and as it fell trackers went with it.
As soon as there is a sniff rates are on the way up fixed deals like current ones will disappear.