Mortgage Rates/Deals

Quick question to those who may nbe in the know if I may:

My current mortgage deal is about to expire and just wondered if the general feeling is to sign up for:

a. fixed rate/discounted deal for a couple of years
b. go onto the lenders variable rate for a while in the hopes of the rates in general coming down in the near future.

I am looking elsewhere for info (Moneysavingexpert/moneysupermarket etc) but collecting info from all available sources being explored.

Thoughts appreciated and thanks in advance.

 

It really depends on the size of your loan, how much you are or could be stretched with it, and your attitude to risk.

The base rate will *probably* go down in the next half year, so there is the potential to save money by going for a discounted rate rather than a fixed rate. On the other hand, you could get your fingers burned if the rates go up again at some point - this may or may not painful, depending on the size of your loan and how much you have to put towards.

Unless your loan is tiny you will almost certainly save money by niot just going for the lender's standard variable rate, so in my view it's between discount and fix.

If you want I might be able to send you a spreadsheet I did to work out which loan would be best for me, based on the lowest overall cost over the next two years.

 

Thanks for the response. Always open to look at additional info so e mail address about to be sent via PM.

 

No other thoughts on this from anyone in the know?

 

Baseplate's Woman is an independant mortgage advisor. Her advice is to find an independant who will use your personal circumstances (salary or salaries, outstanding mortgage, any equity that you have, any debts (be honest - the lenders have access to lots of sources!)) to shop around. The independants have access to many smaller lenders whose rates and conditions tend to be much better than the usual suspects (HBOS, Abbey, etc).

Word of caution: keep an eye on what the arrangement fee is. Independants usually charge much less than the bigger lenders but there are some real robbing kants out there!

 

definately check out some of the smaller lenders. i went to a high street branch for mortgage and was given their quote for the amount needed. went to a smaller business who gave me a few grand more for the same money. there is an arrangement fee but they were offering cash back as an incentive which covered 80 percent of the fee. make sure you declare all debts even if paid off as they can show your credit report for six years

 

If both you and Mr Micawber are happy at the end of the month and you have some savings put to one side, why not try a current account mortgage?

Not for everyone, and absolutely lethal in the wrong hands, but wonderful for getting rid of your mortgage and reducing your tax bill!

Litotes

 

The knock-on effect from the US sub-prime market shows no sign of letting up in Japan.



In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai bank announced plans to cut some of its branches. Yesterday is was announced that Karaoke Bank is up for sale and will likely go for a song while today shares in Kamikaze bank were suspended after they nose-dived and 500 back office staff at Karate Bank got the chop. Analysts report that there is something fishy going on at Sushi bank and staff fear they could get a raw deal.

 

PM me......

 

I appreciated that, PR!

Litotes

 

Do nowt for a month or two and stay on the variable rate, the general feeling is that the interest rate will drop but not by much, then its really down to personal circusmstances, id get on a two year fixed from an independant advisor watching out for set up fees which have increased dramaticly over the last couple of years. i wouldnt worry too much about penalty fees over just two years as your not likely to want to change your mortgage within that time (hopefully) I remortgage every two years and even if you end up choosing the fee - free, higher interest rate fixed mortgage over two years you will still pay less than the standard variable rate.

In the long run unless youve got a waaa huge mortgage the differance over a year isnt going to be great but its all a trade off between flexability, security and cost i suppose so if your remortgaging try and find a good independant financial advisor whos been recomended by someone you know as its all really down to personal circumstance, but dont sit on the variable rate for too long as its the people who do this that pay the money that enable building societys to offer the good deals for people like me and you to snaffle up

 

Just bought a buy to let through 'Pilot Property Solutions' on 0845 412 7171 who are Services based and can help with all aspects of buying. Ask for Charlie, she put me in touch with their Financial Advisor and got me a cracking deal!!

 

OOPS!!!!

Pilot Property Solutions number is 0844 412 7171