Cavey
Member
Registered: 11th Nov 02
Location: Derby
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Ok,
Fixed rate is running out in a month or so, had the letter through giving us our options, currently on 5.59% which I know is high, but we were restricted when we purchased (shared deal etc...)
2 year fixed - 3.59
5 year fixed - 4.09
Variable - 3.59 (3.09 above BoE)
I don't think the BoE rate will increase in the next few years, but I doubt it'll drop to 0.25 either, so thinking the 5 year is our best option incase RBS raise their rates like a few banks have done recently.
Unfortunately going with a different bank isn't really an option due to my shit contract (25hrs) and officially not guaranteed overtime, even though i've done 40 hours for the last 5 years and have P60s to prove it, other banks turned us down when we applied for the mortgage, and RBS was the only place that'd take us 
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Nismo
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Registered: 12th Sep 02
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I would go 2 years fixed, this will then complete just before the 2015 General election, this will give you chance to then take out a 5 year fixed just before the election as there is a chance the base rate could go up with the next election.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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It's still worth hunting about. You don't know unles you try. And there is plenty of options.
Could be worth free mortgage advice places.
What's your ltv roughly?
Adult GiftsClick here to vist us
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Cavey
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Registered: 11th Nov 02
Location: Derby
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ltv is 60-70% as it's shared ownership, thing is, we've got 4* earnings at the moment, and Tesco (only other I tried, wouldn't lend the amount we need)
Mortgage advice centre might be worthwhile, last time we had to give 6 months or payslips each (I get paid weekly and the missus is shit at keeping hers)
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Graeme
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Registered: 26th Jul 04
Location: Northampton
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Depends if your paying for the Mortage upfront at all. Is there any fee on them?
Also with your hours I would look more into it. I'm not contracted for any hours. Basically self employed but aslong as I showed them last 4 months pay slips they were fine for a average.
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whitter45
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Registered: 15th Nov 02
Location: Norton
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variable as I assume it has no lending fee
its the same rate as the 2 year fixed and rates are niot going to be moving anytime soon
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Cavey
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Registered: 11th Nov 02
Location: Derby
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BoE rate won't be moving, I agree with that, but i'm worried about the bank itself raising it's rates like quite a few have done recently. Although with it being RBS and 70% tax payer owned I would think they'd leave it a while?
(and there's no fees on any of them anyway)
[Edited on 07-01-2013 by Cavey]
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James
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Registered: 1st Jun 02
Location: Surrey
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I wouldn't go with variable, even though it's unlikely to increase by a lot, I'd rather have the peace of mind of a fixed rate.
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AndyKent
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Registered: 3rd Sep 05
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On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
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James
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Registered: 1st Jun 02
Location: Surrey
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quote:
Originally posted by AndyKent
On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
Yeh but with a fixed rate, most people (or most financially savvy people) would remortgage when it expires.
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by AndyKent
On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
trouble is as the BoE rate rises so do the fix deals as most try and jump in
The economy (london aside) is not growing especially in housing so rates will not rise very soon
I would ride variable and on the first indication they will rise jump into a fixed
beats paying 1k mortage fees for a fixed rate thats the same as a variable
[Edited on 07-01-2013 by whitter45]
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by James
quote:
Originally posted by AndyKent
On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
Yeh but with a fixed rate, most people (or most financially savvy people) would remortgage when it expires.
why would they James - the rate has not moved since I came out of my fixed rate in 2010 - therefore for nealry 3 years I have been on 2.5% - is that not savvy??
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AndyKent
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Registered: 3rd Sep 05
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Defo go with variable in current times for Those exact reasons ^^
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by whitter45
quote:
Originally posted by James
quote:
Originally posted by AndyKent
On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
Yeh but with a fixed rate, most people (or most financially savvy people) would remortgage when it expires.
why would they James - the rate has not moved since I came out of my fixed rate in 2010 - therefore for nealry 3 years I have been on 2.5% - is that not savvy??
I was referring to the situation that Andy described, if your fixed rate is about the expire and the rate you will be on isn't good, the savvy thing would be to find a new deal, not just bend over and take it.
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whitter45
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Registered: 15th Nov 02
Location: Norton
User status: Offline
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quote:
Originally posted by James
quote:
Originally posted by whitter45
quote:
Originally posted by James
quote:
Originally posted by AndyKent
On the opposite hand James, I'd far rather have variable where I can slowly absorb rate rises rather than suddenly having to find a massive amount more per month when your deal expires.
Yeh but with a fixed rate, most people (or most financially savvy people) would remortgage when it expires.
why would they James - the rate has not moved since I came out of my fixed rate in 2010 - therefore for nealry 3 years I have been on 2.5% - is that not savvy??
I was referring to the situation that Andy described, if your fixed rate is about the expire and the rate you will be on isn't good, the savvy thing would be to find a new deal, not just bend over and take it.
but the varaibale and 2 year deal are the same interest rate but surely the fixed rate has a fee assigned to it - so for me the savvy would be variable as i doubt it will rise in the next 2 years
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Jesus 
I was referring to the situation that Andy described.
So say you are on fixed rate 3%, after the fixed rate expires it goes onto variable 5%. I'm saying the savvy thing would be to look for a new deal elsewhere, not just accept the 5%.
Obviously if the rate is the same after the fixed rate expires then yes, you would probably stick with it.
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AndyKent
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Registered: 3rd Sep 05
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That's not quite what I was saying.
I meant coping with 0.25% increases 4 times is easier than 1% all in one go.
Would you rather trim £25 from your budget 4 times or £100 at once?
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whitter45
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Registered: 15th Nov 02
Location: Norton
User status: Offline
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quote:
Originally posted by James
Jesus
I was referring to the situation that Andy described.
So say you are on fixed rate 3%, after the fixed rate expires it goes onto variable 5%. I'm saying the savvy thing would be to look for a new deal elsewhere, not just accept the 5%.
Obviously if the rate is the same after the fixed rate expires then yes, you would probably stick with it.
2 year fixed - 3.59
5 year fixed - 4.09
Variable - 3.59 (3.09 above BoE)
That was the orginal question
Andy never mentioned any rates other than they would incrementally rise not all in one go
[Edited on 07-01-2013 by whitter45]
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by AndyKent
That's not quite what I was saying.
I meant coping with 0.25% increases 4 times is easier than 1% all in one go.
Would you rather trim £25 from your budget 4 times or £100 at once?
I completely agree, I wasn't doubting your logic. I assumed you meant that when the fixed rate expires, you automatically go straight onto the variable rate which is usually considerably less favourable. That's what my example was based on.
quote:
Originally posted by whitter45
quote:
Originally posted by James
Jesus
I was referring to the situation that Andy described.
So say you are on fixed rate 3%, after the fixed rate expires it goes onto variable 5%. I'm saying the savvy thing would be to look for a new deal elsewhere, not just accept the 5%.
Obviously if the rate is the same after the fixed rate expires then yes, you would probably stick with it.
2 year fixed - 3.59
5 year fixed - 4.09
Variable - 3.59 (3.09 above BoE)
That was the orginal question
Andy never mentioned any rates other than they would incrementally rise not all in one go
[Edited on 07-01-2013 by whitter45]
I wasn't responding to the original question, I was just talking about the situation that I mentioned above.
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Cavey
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Registered: 11th Nov 02
Location: Derby
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 There is no fee on the 2 year fixed
There is another deal that's £995 fee and 3.35% But over the 2 years it wouldn't save us £1k so I didn't mention it
[Edited on 07-01-2013 by Cavey]
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Toby
Premium Member
Registered: 29th Nov 05
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Is the variable rate mentioned a new product or what you will fall onto now your not tied in?
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Cavey
Member
Registered: 11th Nov 02
Location: Derby
User status: Offline
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New product, just leaving it now was over 4% can't remember off hand
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Cavey
Member
Registered: 11th Nov 02
Location: Derby
User status: Offline
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Probably going for the 2 years fixed, in 2 years we have to start paying off the other 30% of the house  So makes sense to have a clean break then and see if we can re-mortgage for the full amount then
Turns out in the time that's passed since I wrote the original message at 1407, the rates have dropped even more  now 3.49 instead of 3.59 for the 2 year fixed, £7 a month less...
[Edited on 09-01-2013 by Cavey]
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