# fixed rate mortgage



## mart. (Jul 7, 2008)

Choosing anew mortgage.

Would you go for 3 or 5 year fixed ?


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## S63 (Jan 5, 2007)

Flip a coin.


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## mart. (Jul 7, 2008)

lol that's what i'm thinking. 

there's nothing between the payments or % 

Just a gamble on when the BOE interest rates will start going up.


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## bigslippy (Sep 19, 2010)

3 year will be lower rate , which lender and whats your loan to value?


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## S63 (Jan 5, 2007)

mart. said:


> lol that's what i'm thinking.
> 
> there's nothing between the payments or %
> 
> Just a gamble on when the BOE interest rates will start going up.


The advantage of a fixed term, however long is that you know exactly what your payments are going to be for that period of time and therefore can cut your cloth accordingly. Not so if you go with variable rate, although the past few years have been as good as.


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## mart. (Jul 7, 2008)

not set on a lender yet but I was on the virgin money site as it's very easy to play with. 

LTV is 78%

155000 house
35000 deposit.


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## S63 (Jan 5, 2007)

Do companies still sell endowment interest only products or is it mainly repayment mortgages nowadays?


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## mart. (Jul 7, 2008)

just looked again

3 year - 3.59% then 4.79 overall - 4.6%
5 year - 3.79% then 4.79 overall - 4.5%

I would be getting new deal at end of fixed rate anyway but theres the gamble, will it be better in 3 or 5 years.


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## bigslippy (Sep 19, 2010)

S63 said:


> Do companies still sell endowment interest only products or is it mainly repayment mortgages nowadays?


A lot of changes have come into effect with regard to interest only ... certain ltv eg 50%, 75% max ltv provideing there is "x" amount of equity


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## robertdon777 (Nov 3, 2005)

3 year, still think the rates will be low for at least another 5. They only go up when the economy starts going well again, that ain't happening for a long time.


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## Naddy37 (Oct 27, 2005)

mart. said:


> Just a gamble on when the BOE interest rates will start going up.


That won't be till at least another year, from what I've been told by peeps "in the know"


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## olliecampbell (Jan 30, 2007)

neilos said:


> That won't be till at least another year, from what I've been told by peeps "in the know"


I'm sure I read something in the papers saying they expect them to go up and not back down until 2015ish.


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## BJG (Feb 8, 2013)

If you believe what they say in the press, an interest rate rise is several years away yet.

The following is a quote from This is Money website: 

"Money markets still put base rate at 0.75 per cent at a shade under four years away - indicating rates will not be higher than they are now until the end of 2016."

It is a difficult one. I fixed my mortgage for 5 years back in 2007 at 6.14%. The rates then rapidly dropped as I watched in pain!

I am now sitting on the base rate at 2.5% and able to spend a little more on detailing products! I won't be fixing for a few years yet but then I have the luxury of not having to change my mortgage at present.

Good luck!


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## Radish293 (Mar 16, 2012)

If you disciplined with money look at off set mortgages. Numerous providers doing them. We had a one account for 5 years and can't believe how much money we have saved and paid it off early. Totally recommended.


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