tomskip Posted May 9, 2016 Share Posted May 9, 2016 Or perhaps it is. How would I know?As someone who opted for a 5 year fix at 5% just before interest rates plummeted, I fear I'm not the best person to judge!What are the financially savvy EDF bods doing for mortgages at the moment? Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/ Share on other sites More sharing options...
tomskip Posted May 9, 2016 Author Share Posted May 9, 2016 Oh sorry meant to put this in the Lounge. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995448 Share on other sites More sharing options...
Jeremy Posted May 9, 2016 Share Posted May 9, 2016 Personally I don't think I'd ever go fixed again. I got my first mortgage in 2002 on a 5 year fixed rate, and even though rates rose steadily from 4% to 5.75% during that time, I still would have paid less overall if I'd been on a tracker. And the early repayment charges can be very large. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995458 Share on other sites More sharing options...
tomskip Posted May 9, 2016 Author Share Posted May 9, 2016 Not even for two years at 1.44% Jeremy? Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995475 Share on other sites More sharing options...
Jeremy Posted May 9, 2016 Share Posted May 9, 2016 That does sound competitive. Maybe worth going for if the booking fee is low and you're 100% sure you won't need to sell in the next two years? Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995487 Share on other sites More sharing options...
Loz Posted May 9, 2016 Share Posted May 9, 2016 Well, you are betting on the future. Personally I don't think interest rates are going to jump up any time soon (i.e. in the next two years).I've just plumped for a two year fix. I went for a 1.99% deal, but that was fee-free and we have the mortgage down to a point where that's a better deal than forking out ?1000+ in fees. The three year was nearly a half point more and so I'm betting that interest rates won't go up by more than that in by 2019. I might be wrong, but only the future will tell. The tracker was only a 0.15% better rate.But, 5 year fixes are good for those on a budget. If you want surety in your outgoings, then maybe they are for you. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995491 Share on other sites More sharing options...
tomskip Posted May 9, 2016 Author Share Posted May 9, 2016 I feel its a gamble that most of us just aren't qualified for. We flushed away more than ?20,000 on that 5 year fix (gnashes teeth). The 1.44% offer is from existing lender with no fees, think we're going to cautiously go for that. Thanks. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995531 Share on other sites More sharing options...
Jeremy Posted May 9, 2016 Share Posted May 9, 2016 Yeah... people often think they're playing it safe with a fixed rate... but to my way of thinking, if you get a fixed rate mortgage then you are gambling that rates are going to rise.But take anything anyone says on here with a pinch of salt, you're probably already as clued up (or clueless, take your pick) as anyone else on the forum. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-995541 Share on other sites More sharing options...
Azalea Posted May 25, 2016 Share Posted May 25, 2016 Interested in this discussion. I am just coming out of a 2 yr fixed rate. I had previously been on a 2 year tracker, and opted for the fixed as I thought for sure thought BoE Rate would rise. Obviously it didn't. I now have a choice between 2 yr fix at 1.69 or 2 yr tracker whose monthly repayments would be ?60 a month lower than the fixed. Both have product fees. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1001828 Share on other sites More sharing options...
Loz Posted May 25, 2016 Share Posted May 25, 2016 I'd get a spreadsheet and do a bit of number crunching, Azalea. I'd calculate the total cost over two years for:- 2 years fixed at 1.69% + fees- 2 years tracker @ your tracker rate + fees- 1 years tracker @ your tracker rate + 1 year tracker at the rate +0.25% + feesand then do the same with a couple of fee-free mortgages. With the +0.25%, you have a better idea of the risk as well. Fees can make a real difference. That should tell you what the difference and possible risk over the two years really is. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1001947 Share on other sites More sharing options...
DovertheRoad Posted May 25, 2016 Share Posted May 25, 2016 There will be a time in the next few years when a 5 year fix for those with stability and not looking to move is bargain of the century. When they rise they won't be coming back down again in a hurry.I like fixed rates without fees in the current environment...and got a 2 year at 1.39% recently. The OP's deal is a good one - why risk a tracker if you can fix at 1.44...one of the cheapest rates in history? Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1001957 Share on other sites More sharing options...
Jeremy Posted May 25, 2016 Share Posted May 25, 2016 DovertheRoad Wrote:-------------------------------------------------------> There will be a time in the next few years when a> 5 year fix for those with stability and not> looking to move is bargain of the century.Maybe. Can't say with any certainty. Rates are likely to rise very very slowly. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1001963 Share on other sites More sharing options...
Loz Posted May 25, 2016 Share Posted May 25, 2016 DovertheRoad Wrote:-------------------------------------------------------> I like fixed rates without fees in the current> environment...and got a 2 year at 1.39% recently.A two-year fix without fees at 1.39%?? Who was that with? The best I could find was 1.99%. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1001993 Share on other sites More sharing options...
DovertheRoad Posted May 25, 2016 Share Posted May 25, 2016 Lloyds I think? I have five accounts with them including two business ones and think it was a rate for banking customers only. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1002047 Share on other sites More sharing options...
DovertheRoad Posted May 25, 2016 Share Posted May 25, 2016 And was about 8 months ago.... Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1002048 Share on other sites More sharing options...
Mick Mac Posted May 25, 2016 Share Posted May 25, 2016 Private Banking customers can get exclusive deals. You qualify automatically when you move over the road. Link to comment https://www.eastdulwichforum.co.uk/topic/105668-now-is-not-the-time-to-take-out-a-tracker-or-variable-rate-mortgage-eh/#findComment-1002100 Share on other sites More sharing options...
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