[Closed] Good time to tie in to mortgage rate?

I'm one year into a 5 year fix. I can't tell you when rates are going to go up but am pretty certain they are not going to go down.

Can you afford your monthly payments if rates increase?

if the banks are offering record low rates for fixes, they don't expect them to go up anytime soon.

am pretty certain they are not going to go down

They might hit a record low very shortly apparently [url= http://www.theguardian.com/money/2015/feb/06/first-direct-barclays-mortgage-rate-cuts-small-deposit ]Mortgage Rates in The Guardian*[/url]

*EDIT: you can read the full story in The Guardian

yup lock in for 5 years, if you have no issue with your lender and no plans to move house go for it.

Banks may go lower, they are desparate for business as the requirement for large deposits has slowed some elements of the markets down, so they are looking to people like you (and me) to "move" to thier products as a viable alternative to more business before rates go up - now predicted to be early 2016.

TSB have just launched a new product - 10 years locked at 3.44% but able to get out at five years should you wish. not looked at the detail of it. Its a bit more expensive that the 2.8% I just locked in for 5 years but you tales your gamble etc...

We've just re-done our mortgage and signed up to a 5-year fixed. We've effectively got two mortgages and the payments on this portion will effectively go down by a small amount/month.

Not sure if interest rates are going to go up in the near future or not, but I like the security of knowing what I'll be required to pay for the next 5 yrs.

TSB product is 3.59% according to their site, First Direct are 2.89% (LTV of 65%). Plus the First allows unlimited lump sum or regular overpayments so long as you don't settle it in full during teh fixed term.

Remortgage time here as well, just need the house revalued first. How do you folk go about it? Did you bother chasing brokers or just go for the best deal you could find yourself? Also, I assume and mortgage they give would be subject to a revaluation (given I have extended and modernised since I bought the place).

squirrelking - Member

Remortgage time here as well, just need the house revalued first. How do you folk go about it? Did you bother chasing brokers or just go for the best deal you could find yourself? Also, I assume and mortgage they give would be subject to a revaluation (given I have extended and modernised since I bought the place).

We got an e-mail from Barclays (well, The Woolwich who do their mortgages) and looked around to compare prices. There wasn't a lot around that would have saved any money and loads of them had large arrangement fees.
We just applied online for the one we wanted and the paperwork came through a couple of day later.

I am not sure that the house needs to be re-valued, does it? Dunno, but we haven't had to do anything like that.

Re-valuation comes into play when you have extened/modernised/etc and have potentially increased the value of the house and you want this increased value to be taken in to account. Either for more borrowing, or to hit a LTV ratio to get a better interest rate deal.

I just phoned Nationwide because I wanted their mortgage. They include their own solicitors for free so one the call was done all I've had to do is sign a few pieces of paper and send them back.

Easiest thing I've ever done with regard to a mortgage.

You can look at all Halifax's current offerings here, not sure how competitive they are though.

http://www.halifax-intermediaries.co.uk/products/mortgages/default.aspx

Someone asked the same question about 12 months ago, and the majority said your doomed if you dont....

who knows is the real answer. IMO it depends more about your individual income/outgoings than whether rates go up or down.

Thanks for your thoughts all... Guess I'll tie in for a few years and have the security of knowing what is going out. Plus I can port the rate to another property if I move

Squirelking has i believe knocked down a shit falling down extension and built the real thing bigger plus new working heating etc so probably does need a revaluation.

We went through the "rates are going up soon" scare when we bought the current place, and so have found ourselves on a 5 year deal more expensive than hindsight suggests it needed to have been.

And, according to the Guardian article, rates are more likely to go up in early 2016...just before our current fix finishes!

That said, if c3% feels right as a commitment level for a while, then fixing at lower rates seems to be a good idea.