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deano87

Member

Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline

6th Apr 14 at 17:25

So after bit of a sanity check if I'm being honest.

Mrs aand I gross income approx £40k. Mortgage applied for £133k over 30 years based on £140k property value and 5% deposit.

We've chosen to fix for 2 years at 4.99% with Santander. This would then go on to their variable rate (currently 4.74%) if we didn't remortgage.

Question is, should we perhaps fix for 5 years at 5.49% to protect against iminent interest rate rises based on high LTV. imho rates could rise above 5.49% in the next 5 years, with our LTV. I'm not a gambling man but feel 2 years is a gamble.

Thoughts?

[Edited on 06-04-2014 by deano87]

Aaron

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Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline

6th Apr 14 at 18:00

I've just fixed for 5 years in my new house.

deano87

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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline

6th Apr 14 at 19:15

At what rate Aaron?

Gaz

Member

Registered: 24th Aug 03
Location: Widnes, Cheshire
User status: Offline

6th Apr 14 at 20:23

I'd be tempted to fix with the current market been as 'low' as it is. As you say IR could be on the increase..

dan_m1les

Member

Registered: 8th May 06
Location: Burnham, Buckinghamshire
User status: Offline

6th Apr 14 at 20:45

I've fixed at 4 years, the interest rate can only go up!

Ian W

Member

Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline

6th Apr 14 at 22:18

I've just fixed for four years.

James

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Registered: 1st Jun 02
Location: Surrey
User status: Offline

7th Apr 14 at 08:43

They are terrible rates, I'd be tempted to fix for as short as possible and try to overpay to bring the LTV down ready for the re-mortgage.

Robbo

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Registered: 6th Aug 02
Location: London
User status: Offline

7th Apr 14 at 09:16

pow

Premium Member

Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline

7th Apr 14 at 12:13

quote:
Originally posted by James
They are terrible rates, I'd be tempted to fix for as short as possible and try to overpay to bring the LTV down ready for the re-mortgage.

whitter45

Member

Registered: 15th Nov 02
Location: Norton
User status: Offline

7th Apr 14 at 14:23

I agree although your going to have to pay a good amount over the monthly payments over a short period to have any affect on the LTV

M2RTY

Member

Registered: 25th May 01
User status: Offline

7th Apr 14 at 14:41

With those rates if fix for the shortest period possible and overpay as if you were paying the 5 year amount
Then after your fixed rate is up, grab another fixed deal before interest rates rise (maybe?) with a better % ltv ratio

Ive just got 2.5% on a 75% mortgage for 3 years with £99 fee, plan to overpay 10% a year (no fee) then grab another 3 years in 2017 and should have <60% by then

Aaron

Member

Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline

7th Apr 14 at 17:32

quote:
Originally posted by Aaron
I've just fixed for 5 years in my new house.

Sorry for the late reply. I think we got something like 4.19%.

Large deposit though tbh.

Ben G

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Registered: 12th Jan 07
Location: Essex
User status: Offline

7th Apr 14 at 19:49

Those are pretty rubbish rates, but I guess as a ftb with a small deposit you don't have much choice.

When we first got our property, our deal was 3 years fixed at 6.05%. After the 3 years it went down to 3.99% svr and saved me £230 a month!

Been on that rate since June last year and saved some decent monies that would've been spent on interest.

deano87

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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline

8th Apr 14 at 05:30

Cheers all. Think we'll stick with 2 years.

M2RTY

Member

Registered: 25th May 01
User status: Offline

8th Apr 14 at 10:59

If mortgage drops, overpay!

Ben G

Member

Registered: 12th Jan 07
Location: Essex
User status: Offline

8th Apr 14 at 13:48

Fuck that, wanna enjoy my life now. Might be dead before the mortgage is paid off.

deano87

Member

Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline

8th Apr 14 at 21:18

quote:
Originally posted by Ben G
Fuck that, wanna enjoy my life now. Might be dead before the mortgage is paid off.

Scary to think I will be 56 when I pay off the mortgage.

If I stick with their mortgage, go on to variable, at current rates I will pay £250k for a £140k house