# Mortgages



## Darlofan (Nov 24, 2010)

Our mortgage fixed rate ends next month and reverts to standard rate of 3.47%. 
What's everyone's thoughts on fixing again? 

Only part of ours was fixed for last 2 years when we topped it up to move and we've had it quite good over the last few years as svr has been low so mortgage payments have been low.

Obviously lots of chatter about rates rising although there have been rumours around for a while now and nothing has happened.


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## Mattwilko92 (Aug 4, 2008)

I would try and fix at a low rate for 5 years


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## DrEskimo (Jan 7, 2016)

You would think the rates can only possibly go up, but then again I thought that when I fixed my rate 2yrs ago...!

5yrs is too long for me, so usually go for a 2yr fixed. I prefer to know exactly how much I will pay every month. If you do go variable, then I would work out whether you could afford any increases. 

I would of saved a good deal of cash if I had gone variable rather than fixed for the last 5odd years I've had a mortgage, but then hindsight is a wonderful thing...!


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## Oats (Apr 9, 2012)

DrEskimo said:


> I would of saved a good deal of cash if I had gone variable rather than fixed for the last 5odd years I've had a mortgage, but then hindsight is a wonderful thing...!


Trying being on a ten year fixed lol. But then when moving house and starting a family it's worth it.


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## Hereisphilly (Nov 17, 2014)

We sorted our first mortgage out last month, and for peace of mind I wanted to fix for a decent amount of time, so we can plan and budget around it

In the end went for a 2.9% fixed for 5 years, was only a small amount extra a month compared to a 2 year fixed, so was a no brainier to us

The way I saw it, interest rates can't go much lower, but they can rise from this point, so I wanted to fix at as low a rate as possible

Sent from my Pixel XL using Tapatalk


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## MDC250 (Jan 4, 2014)

Plus the cost of remortgaging is often prohibitive... reservation fees, product fees, legal fees. To my mind 2 years isn't cost effective, 10 years too long and 5 is the best of both worlds.


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## kingswood (Jun 23, 2016)

whats your LTV?

its hard for anyone to give advice on here without knowing all the circumstances.

im on a 2yr fixed. gives chance for the rise in equity to be used to lower the LTV and then get a better mortgage rate next time round.

if you go on the variable and have enough equity to jump onto the best fixed at the time then thats a option.

the cost or remortgaging isnt massive if you stay away from the stupid £1500 product fees on super low rate mortgage that when you do the maths over the term are more than £0 product fee's of a higher interest rate. always look at the cost per £1000 of a mortgage. 

go see a recommended independent mortgage advisor


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## organgrinder (Jan 20, 2008)

There are plenty of 5 year deals around the 2% mark. I really don't think anyone can expect that rate of interest to fall meaningfully so any change from a reduction in rates is unlikely to have cost you much. You can also get 10 year fixes from about 2.5% which I think is a great deal especially for those who need long term certainty (although early redemption penalties need to be considered if you think such a circumstance might arise).

The downside of an increase in rates is much greater than the upside of any reduction (given that we are at 0.5% base rate just now)

Either go and see a good mortgage broker or do some searching on the internet yourself and grab a deal. Any fixed deal you get is likely to be better than the SVR.


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## AndyA4TDI (May 7, 2012)

Just got a 3 year fixed at 1.79 from Nationwide as LTV is only 26%, very happy as no fee either


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## Bulkhead (Oct 17, 2007)

I'm not sure what the lenders are like in the UK now but over here, I go into the bank we have our mortgage with every year and haggle for a better rate. Every time I get one. We knocked off around $200 a month after the last visit! It does depend on your circumstances though but we're glad we didn't fix as the rates have only ever gone down. Worth a try though.


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## Radish293 (Mar 16, 2012)

Best thing we ever did was to switch to an offset mortgage. Saved a fortune and paired it off about 7 years early.


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## steelghost (Aug 20, 2015)

Radish293 said:


> Best thing we ever did was to switch to an offset mortgage. Saved a fortune and paired it off about 7 years early.


If you've got the spare money to offset it I cannot agree more. Given interest rates are so low you make a much better effective return* on the offset money than you would in any ISA or whatever. Plus you can get at the money in the meantime, should you need to.

*Effective return because of course you don't get money back, the return is in future interest you don't have to pay, and of course that can't be taxed :thumb:


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## cadmunkey (Jun 8, 2015)

My mortgage deal ran out recently and for the first time ever I've gone for a fixed rate. 5 year fixed at a very good rate, only a tenner a month more than I was paying before and for five years peace of mind was worth it for me. The ten year fix is just a little bit too high in my opinion.
If you do qualify for an offset mortgage then they are well worth it. I had one for five years but then after the 2008 crash I no longer met the banks stricter criteria unfortunately so had to switch product.


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## Darlofan (Nov 24, 2010)

Thanks for all the replies. Looking at 5 yr fixed now. In talks with current provider to see what they can do as found cheaper deals than them. Hoping they'll come up with something as it'll save lots of hassle changing, with all the bumpfff I'll have to provide!!!


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## Andyg_TSi (Sep 6, 2013)

Depending on the circumstances & deal on offer, the best you csn hope for is a deal that is +2% of the bank of England base rate.
Base rate is 0.25% therefore, if you get a deal at 2.25% your doing well.

I doubt very much that the base rate will fall to 0, so in my mind mortgage rates will only ever be due to go one way & thats up.

If you csn fix now for any length of time id do so at 2.25 or 2.5%. Im on my lenders current variable rate & that is 2.25%....luckilly.


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## stealthwolf (Sep 24, 2008)

I had a similar issue. FTB, 2 yr fixed mortgage (90% LTV) was ending. 
LTV is now 84%. Retention product offered 1.54% (vs 1.3% from competitors) but meant less hassle in having to renew. We're planning to stay in our current house for another 3-4 years so it made sense to keep it short.

If I were staying here "forever", then I'd look at 3-5 year mortgage products. Fixed rates makes my life easier in knowing exactly what goes out each month. I'd also look at saving up to make decent overpayments that avoid any penalties but also reduce the term of the mortgage.


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## PugIain (Jun 28, 2006)

We moved ours after the 2 year fixed ended.
Went from The Skipton at about £340 a month to TSB on as near as damn it the same per month for 2 years.
Somehow it knocked 8 years off moving it. So that's 10 years paid off in 2....


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## mwad (Mar 4, 2011)

Oats said:


> Trying being on a ten year fixed lol. But then when moving house and starting a family it's worth it.


I recently did-works for me:driver: but then I've no children and not going to move


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## mwad (Mar 4, 2011)

Andyg_TSi said:


> Depending on the circumstances & deal on offer, the best you csn hope for is a deal that is +2% of the bank of England base rate.
> Base rate is 0.25% therefore, if you get a deal at 2.25% your doing well.
> 
> I doubt very much that the base rate will fall to 0, so in my mind mortgage rates will only ever be due to go one way & thats up.
> ...


I got a 10 year fixed at 2.49%:driver:


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## Darlofan (Nov 24, 2010)

Well, I started this thread in Feb last year!! Since then we decided to stay as we were on variable rate. Obviously there's been 2 rate rises since then. Last one affected this month, rising our payment by £12. So looking back I think the gamble to stay paid off. At the time there was lots of talk of rate rises etc which is why I questioned it back then.


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## James_R (Jun 28, 2007)

I did mine in March 2017 when there was a lot of uncertainty with the rates.
The SVR was about the same as the fixed rate I got for 5 years, so I fixed thinking its actually not going to go down any more.

I had no surveys to pay for, no fees, no nothing, so the rate was a bit higher than one with fees but in the end I was happy enough that we have consistent payments for the forthcoming future.

I'll let it go to SVR at the end of the 5 years as there will only be a few months to run as we've been overpaying for a while.

Took about 4 or 5 years off the term


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## kev2005 (Aug 26, 2018)

I bought my place, FTB in 2015, Mortgage is over 30 years (i didn't fit inside 25 years that i was originally hoping for). I chose to fix for 5 years, I was considering 10 years but my mortgage adviser advised i fixed for 5 years as his view was if the interest rates were to rise, would need to be very gradual as otherwise lots of people would find them selves unable to afford the repayments etc. My 5 year fixed is up in 2020 and I hear lots of talk of interest rates expected to be 3-4% by then which I presume means mortgage rates will be higher. What do people here think?

To date, I have only paid the monthly repayments, no over payments as being FTB had the usual FTB expenses to kit place out etc and i'm single so only 1 income to do it all on.

Im currently considering overpaying a small amount this year (i can over pay a max of 10% each year) and and then for the next 2 years, im hoping to try and pay of as much as i can in the hope to effectively counteract the 4% interest rate potential and still end up payingthe same amount i do now. The repayments wil be made to keep the term the same but reduce the monthly payment until my 5 year fixed runs out. Once i renew the 5 year fixed, i'll change a any overpayments will reduce the term. 

I figure at the moment, paying less monthly maybe a bonus to help me save a bit more and pay off a larger amount and keep the term the same so that if interest rates to go up, i'll still have the mortgage over 25 years as opposed to a lower amount pushing the repayments up. When i re-fix i plan to overpay as much as I can for those 5 years, which i'm then hoping will put me in a much better position.

Probably total stupid idea and realistically the repayments will go up, but looking at a spreadsheet I found online, doing this means IF I can repay what I hope to and stick to it, I can repay the mortgage sooner than 30 years which would be great and can then start to add a bit more to my pension to save going to 68!

Kev


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