Viewing 36 posts - 41 through 76 (of 76 total)
  • Mortgages… 2 years or 5 years fixed?
  • thisisnotaspoon
    Full Member

    We just fixed for 10 years, the rate was only 0.2% higher than the 5 year fixed, and it gives me be a bit of peace of mind.

    We just fixed for 5 years, I’m regretting not going for 10 already and the 5 year’s hasn’t even started yet! It was already ~12% more than we had been paying each month.

    I think the plan now is to try and overpay it if we can so that it’s less of a shock when it comes up in 5 years time then we can either cope with the increase and be paid off slightly early, or use that flexibility to pay less than the new amount each month if it’s unaffordable.

    jolmes
    Free Member

    Ours is a 2yr fixed at 1.69% starting in March this year. Should have taken the 5yr at the minimum, we’ve both just taken a huge pay cut to go term time working, not looking forward to re-mortgaging at all when it comes round.

    grimep
    Free Member

    We saw this coming a few months ago, took the penalty for early remortgaging and fixed for 10.

    frankconway
    Full Member

    As long as possible.
    That’s what I would do if I still had a mortgage.

    martinhutch
    Full Member

    If OP hasn’t already done it, I suspect he/she’s now too late at the rates he’s been offered. Lenders will be pulling products off the market today with BoE rate rise expected within days and further rises shortly afterwards.

    There will be people trying to buy houses whose mortgage deals get withdrawn this week.

    What an unholy mess.

    EDIT: I see it’s happening.

    matt_outandabout
    Full Member

    There will be people trying to buy houses whose mortgage deals get withdrawn this week.

    I’ve in-laws who agreed purchase of a ‘forever’ house on Friday. It’s a stretch financially for them, and they’ve paid 20% over the asking price. Plus it’s partly single glazed, 100 year old farm cottage…
    They had thier house valued today. They’ve not investigated mortgages yet, just assumed they would get the same rate as they are currently on….

    Oh dear.

    martinhutch
    Full Member

    Might be a blessing in disguise by the sounds of it. At least they haven’t exchanged.

    jezzep
    Full Member

    Hiya,

    Is it time to say I have 1 year left of my mortgage. The interest rate is fixed too at 1.98% although I have one month over the deal for the final repayment, but can live with that, with the amount that would be left.

    Seriously really feel for everyone at the moment. In 2008 we decided to pay off the mortgage off as soon as we could and thank god we did. It has been a rocky time as we are overpaying but at least at the end we have a moment of freedom and plenty of work years left to build up more savings.

    BR
    JeZ

    fingerbang
    Free Member

    My mortgage application meeting is at 6pm! Unless he can pull a 3.79% out of his hat then I’m out! Might as well start with that to prevent the pain of a full blown application

    Just seen a tweet, Halifax are now withdrawing their mortgage products

    I could go back to the vendors and get money off but I suspect it won’t be enough

    martinhutch
    Full Member

    Might be some ‘legacy’ products around that building societies are still prepared to shift, you might be able to find one of those. Is it a broker, or a particular lender?

    I think some forecasts are suggesting base rates close to 7% are coming, so unless you can fix for a decent period…

    crossed
    Full Member

    We just got in with a new five year fix before the rates went up. It wasn’t cheap but I’m glad we did!

    Kamakazie
    Full Member

    Urghh, my 5yr fix is up in Feb. Been lucky with low rates since I bought but always managed to be ending fixed terms just as rises were being talked up.

    I don’t see it lasting that long based on inflation predictions but maybe that’s wishful thinking.

    Kryton57
    Full Member

    Just seen Virgin are asking nearly 7%. Wow.

    alwillis
    Full Member

    Just fixed for 5 years at 1.5% higher than the 5 finishing at the end of November. Figured that was reasonable in the climate and still affordable as we have both changed jobs upward in the last 5 years. Will be interesting to see what it’s like in 4.5 years time.

    Rockhopper
    Free Member

    At the beginning of may I signed up for a five year fixed rate at 1.96%. There will only be five years left on my mortgage when that runs out.
    I’ve also got a fixed rate on my gas and electricity till July next year so all in all I think I’ve been quite lucky!

    footflaps
    Full Member

    Great way to boost growth – stall the housing market completely!

    UK lenders pause new mortgages amid market turmoil
    Virgin Money and Skipton among those to suspend loans as wholesale rates whipsaw

    https://www.ft.com/content/a549fabb-da75-4935-a567-7128b7b04b76

    fingerbang
    Free Member

    My mortgage application meeting is at 6pm! Unless he can pull a 3.79% out of his hat then I’m out! Might as well start with that to prevent the pain of a full blown application

    Just seen a tweet, Halifax are now withdrawing their mortgage products

    I could go back to the vendors and get money off but I suspect it won’t be enough

    my mortgage advisor said that the deals he had lined up have been withdrawn today but the best one was at 4.5%. So can’t wait to see what the new rates are.

    I’ve asked my vendor for a reduction but to be honest even with that I might struggle. It looks like I’ll have to wait and see. But at 45 years I just want to get back on the housing ladder. Shyte mate

    mikertroid
    Free Member

    I had my 2 yr fixed ending in May ‘23.

    I got spooked a few weeks ago and took the hit on redemption penalty and went for a 5yr fixed at 3.28%…just under 70% LTV.

    I’m glad I did; despite wiping out my savings on the penalty, I think that’ll pay for itself in a few months if it goes beyond 5%.

    Tough times for many. I think rental prices will balloon too, though, so no one is safe unless you’re debt-free.

    tjagain
    Full Member

    Rentals fixed in acotland. No rises allowed and wven when they are there are limits

    NZCol
    Free Member

    Completing on a house next week, mortgage pulled today, offered another at 7.5%. Thankfully managed to find a way round it all but bloody hell what a mess.

    Caher
    Full Member

    Fixed mine for 5 years @ 1.75 about a month ago. Wish I’d gone for 10 now. I’ll make overpayments to lessen the impact.
    Got a feeling that houses prices may drop as the boomers begin dwindle.

    mattcartlidge
    Full Member

    Fixed in Feb for 7 years at 2.09% just lucky with timing really.

    dantsw13
    Free Member

    6 years left on my 10 year fixed at 1.6%. When that runs out only 3 years left and we are overpaying £700/mo to bring that down too. It’s better than savings – we can always take payment holidays if we need to access some of the cash.

    hot_fiat
    Full Member

    @NZCol which provider was that with? We’re due to complete in the next fortnight and I’m really concerned my 1.77% is going to mysteriously disappear.

    egb81
    Free Member

    We moved a few weeks ago, thankfully having fixed our deal at 1.95% a few months before for 10yrs. It would have been 3.5% for 5yrs by the time we moved and now the product isn’t being offered. Find a good mortgage broker. Ours found us much better deals than we found ourselves! Happy to recommend if you’re in the Bristol area.

    dogbone
    Full Member

    Fixed until July 24. That no longer seems long enough..

    69er_Gav
    Free Member

    Been trying to buy our first home for around a year now, and even with a hefty deposit we find ourselves still renting. Granted we are rather fussy in what we want so have been hanging on for the right thing.

    Feeling totally disheartened by the rate increases and mortgages being pulled this week, so likely to be renting for the foreseeable.

    grahamt1980
    Full Member

    https://www.msn.com/en-gb/money/other/the-good-news-is-the-pound-has-rallied-the-bad-news-is-why-ed-conway/ar-AA12gxp1

    Sobering article, talking about how the headline interest rates now are not able to be directly compared to rates historically due to the differences in mortgage size to salary etc

    joeyr
    Free Member

    69er_Gav: (someone far more knowledgeable will probably correct me in a minute but..) If people can’t afford their mortgages then there will be a lot of houses on the market, so (hopefully for you) prices will start to fall soon.

    69er_Gav
    Free Member

    @joeyr I think you could be right there, though folk still need to live somewhere so would that not put pressure on the value end of the market? Could be case of hanging on months and see what comes up.

    On the other hand, feeling a little lucky not to have a mortgage up for renewal in the next few months. We know a few folk in this boat and they’re feeling rather uneasy

    Sandwich
    Full Member

    Great way to boost growth – stall the housing market completely!

    If it makes housing affordable for the youth I’m all for it. For clarity, we’ve nearly paid the mortgage off, I’m due to retire and I don’t intend moving.

    5lab
    Full Member

    69er_Gav: (someone far more knowledgeable will probably correct me in a minute but..) If people can’t afford their mortgages then there will be a lot of houses on the market, so (hopefully for you) prices will start to fall soon.

    I think if it happens at large enough scale to be noticable, there’ll be intervention in place to help people out. This happened in 2007/2008 – there were very few reposessions compared to previous rounds of recession, so whilst prices dropped the whole negative equity/forced sale thing didn’t seem to happen

    thestabiliser
    Free Member

    Just had to bite down and receive a 4.3 for 5 years. Cheers Kwasi, Liz you pair of ****.

    fossy
    Full Member

    We’re selling MIL’s house now after her death. Hopefully the buyers mortgage deal is now secure (should be) or we’ll be back to square one. It’s been empty 3 years, but the council want their care home fees.

    Fortunately my mortgage was paid off a few years ago.

    cookeaa
    Full Member

    Just had to bite down and receive a 4.3 for 5 years. Cheers Kwasi, Liz you pair of ****.

    I’d take that right now TBH, seriously.

    We’ve just discovered that the buy out on the remaining year of our five year fix is prohibitively high, as in we’d essentially be charged way more than a years worth of mortgage payments to get out of a years worth of mortgage payments and fix at around 4%, which is basically like paying double overpayments, but without putting the appropriate dent in the capital sum (read the small print kids!)…

    So we’ve got another year at 2% during which we’re just going to go for max overpayments and then we’re at the tender mercy of the BOE and Kwassi.

    We can apparently get out 4 months early (by which time interest rates will already be well on their way up) but only if we take a new fix with the same provider, still the best path for us now is to try and squash the capital sum as much as we can, save wherever possible and brace for a stupid interest fix in a years time. By which point it’s going to be the opposite game; how short a fix can we get so we’re not stuck on a silly high rate when they do start to come down, or better yet start riding the variable rate rollercoaster…

    Bastards.

    johndoh
    Free Member

    We decided to renew with existing lenders on Friday – going from 1.95 to 3.75 over 5 years and the adviser said today that it’s confirmed. I am so relieved we didn’t opt to swap lenders (which would have only saved us around £750 over the five years) as I doubt we’d get close to that after completing all the additional paperwork we’d need to do to sort it.

Viewing 36 posts - 41 through 76 (of 76 total)

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