bishbosh
Member
Registered: 25th Sep 06
User status: Offline
|
Is it still a good idea to go for a fixed mortgege?
I hear bits and bobs about a possible drop in rates, but not enough to decide.
Dave
|
--DAN--
Member
Registered: 3rd Feb 03
Location: Bottesford. Drives;3 Series
User status: Offline
|
Personally, at this moment in time i'd go for a two year fixed, at least for a little while you know exactly what your paying and can sus out which way interest is going, and if at the end of the two years it has dropped, you can switch over to the variable rate.
|
bishbosh
Member
Registered: 25th Sep 06
User status: Offline
|
Yeah that sounds like a good idea.. I think with the way im streaching my funds to buy a fixed id a must. 2 years would give me time sus the market..
|
bishbosh
Member
Registered: 25th Sep 06
User status: Offline
|
Is anyone worried about house prices dropping when buying at susch high figures. im buying for 120k and its scary!!
|
Dean_W
Member
Registered: 13th Dec 05
Location: Downham Market, Norfolk
User status: Offline
|
house prices dropping  
It won't happen. They plateau sometimes, but always increase. Over the past god knows how long house prices have, on average, doubled every 10 years.
|
IvIarkgraham
Premium Member
Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
User status: Offline
|
im on 2 year fixed rate
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
yeah, as Dean said they havent much chance of dropping due to normal market fluctuations.
Only way values will drop is something happening in that particular area, and if thats the case you've not one your homework before buying or its a new thing after purchasing.
|
scoob
Premium Member
Registered: 16th Oct 03
Location: Beverley, E Riding of Yorkshire
User status: Offline
|
im on a 2 year fixed will look eles were when its up
|
Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
|
house prices dropping 
the problem with the house prices is, people keep buying the houses, as people need houses, there will always be people, they will always need houses
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
If you're close to what you can afford then a fixed rate guarantees that your monthly outgoings aren't going to go up and jeopardise your house.
It also protects you against rate increases, which still could happen.
Having said that, because the market is in panic mode where rates are concerned, the deals on fixed products are absolutely crap.
Safe and reassuring, but you'll pay for that peace of mind.
If you don't care about safety - like me - get a BoE tracker. Great deals at the moment because no one is buying them and if inflation stabilises they might get cheaper. Plus you don't have to remortgage every two years and spend hundreds of pounds in fees doing so.
Ultimately you need to make a decision based on what your priorities are. If in doubt play it safe and look happy. Even if you tie-in to something higher than the prevailing rate, at least you know what your outgoings are.
|
Dean_W
Member
Registered: 13th Dec 05
Location: Downham Market, Norfolk
User status: Offline
|
quote:
Originally posted by IvIarkgraham
im on 2 year fixed rate
I'm on 4.
|
corsa.in.boro
Member
Registered: 30th Aug 02
User status: Offline
|
Good points Ian, how often does the BoE base rate change?
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
They meet monthy and change it when they feel it needs doing.
Minutes are here - http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2007/index.htm
You can see how the votes are cast for rate changes on the last page which normally indicates what is going to happen the following month.
August they all voted to stay at 5.75%.
|
Aaron
Member
Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline
|
Today they could go up once more.
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
http://www.bankofengland.co.uk/publications/news/2007/088.htm
|
Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
|
mines fixed at 5.25.. until 2017
|
