Mortgage Interest Rates

[Blue Til Death]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

 

[BigJimLittleJim]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

the only way is up, baby.

 

[squirtyflower]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

 

[Blue Til Death]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

I'm with HSBC at the moment and their variable rate is good but I'm thinking taking a hit now will be the best option as there will be a stampede once its all starts.

 

[Blue Hefner]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

Do you still think they'll go up given the news regarding wages being lower than inflation?

I'm sure I read that interest rates have never(or don't usually) go up in the months prior to a general election. Also the if they go up in the net 6 months that could/would put more stress on families on the run up to Xmas.

Now I appreciate the BoE don't work for the government but I imagine they will have to take some of their concerns on board, if they have any?

 

[squirtyflower]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

I'm with HSBC at the moment and their variable rate is good but I'm thinking taking a hit now will be the best option as there will be a stampede once its all starts.

iirc HSBC also have some great fixed deals
beware the 'arrangement fee' and factor that into the costs

eg if you are getting a fix over two years you must also add on the fee divided by 24 to get a true reflection on what you are paying out

our fee was £2499 but spread over the time it was still better than a variable rate

 

[SWP's back]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

You did right bud.

 

[Blue Til Death]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

Do you still think they'll go up given the news regarding wages being lower than inflation?

I'm sure I read that interest rates have never(or don't usually) go up in the months prior to a general election. Also the if they go up in the net 6 months that could/would put more stress on families on the run up to Xmas.

Now I appreciate the BoE don't work for the government but I imagine they will have to take some of their concerns on board, if they have any?

Valid points mate and ones I have considered, making the decision harder still, I think SF is right though, next 6 months maximum, not being clued up on these matters, no idea how much notice they give once they make the decision.

 

[squirtyflower]

I am currently on a variable deal but realise that the low Interest rates are going to have to rise in the not too distant future.
Its not going to be an easy decision to jump to a fixed term deal from what I pay now.

What do you financial sages on here think, obviously once the BOE decide its happening its too late to get the best deals.

Any sensible advice gratefully received.

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

You did right bud.

yeah, worked out good for us this time as our old rate had come to an end

now paying a quarter of what i was paying when we bought the house in 93, with an additional £4k added to the loan

 

[ChicagoBlue]

It is a simple math problem, but the problem is you don't know all the numbers, so you have to make your best guess. Interest rates are not going down unless the apocalypse arrives, then it won't matter! So, the important questions are:

What is your current variable rate?
What is your maximum increase, and how often can it adjust?
How much "shock" can you comfortably absorb in your variable rate before it becomes painful?
What is the fixed rate you can get today, and at what cost?
How long do you have to pay off your mortgage?
How long do you expect to live in your current home?

If you know those answers, you are a long way to knowing what SHOULD save you the most/cost you the least.

HERE is one example of the types of pre-made calculators you can use, but the web is full of them. You might need one specific to the UK market, as your "fixed" rates do not generally seem to go out to the full payoff period of your mortgage,so you have to ladder "fixed" mortgages over time.....sweet deal for the banks!! Rip off Britain, indeed!

I'm not sure how useful "back of the envelope" calculations are, but as an example, if your mortgage rate can adjust up .25% every year and the 5 yr fixed rate is 1% higher than your variable rate, and you plan to move within the next four years, then you have no worries!

However, if your rate is REALLY variable (as in tied to a market rate, for example LIBOR +, with NO upper limits or speed of change), then you are what would be termed "naked" and at the mercy of the market. Rates will rise, so your ONLY question is can you absorb rapidly rising rates without losing your home. That sounds dramatic, but when it boils down to brass tacks, that is the real question....not can I save a dollar.

So, without more info, it is impossible to know which is best for you, but if the only question is whether interest rates are going to rise or fall over the long term, the answer is rise.

HERE is an article that might have some info of interest.

Good luck!