Jump to content

Recommended Posts

Personally I don't think I'd ever go fixed again. I got my first mortgage in 2002 on a 5 year fixed rate, and even though rates rose steadily from 4% to 5.75% during that time, I still would have paid less overall if I'd been on a tracker. And the early repayment charges can be very large.

Well, you are betting on the future. Personally I don't think interest rates are going to jump up any time soon (i.e. in the next two years).


I've just plumped for a two year fix. I went for a 1.99% deal, but that was fee-free and we have the mortgage down to a point where that's a better deal than forking out ?1000+ in fees. The three year was nearly a half point more and so I'm betting that interest rates won't go up by more than that in by 2019. I might be wrong, but only the future will tell. The tracker was only a 0.15% better rate.


But, 5 year fixes are good for those on a budget. If you want surety in your outgoings, then maybe they are for you.

I feel its a gamble that most of us just aren't qualified for.


We flushed away more than ?20,000 on that 5 year fix (gnashes teeth). The 1.44% offer is from existing lender with no fees, think we're going to cautiously go for that. Thanks.

Yeah... people often think they're playing it safe with a fixed rate... but to my way of thinking, if you get a fixed rate mortgage then you are gambling that rates are going to rise.


But take anything anyone says on here with a pinch of salt, you're probably already as clued up (or clueless, take your pick) as anyone else on the forum.

  • 3 weeks later...
Interested in this discussion. I am just coming out of a 2 yr fixed rate. I had previously been on a 2 year tracker, and opted for the fixed as I thought for sure thought BoE Rate would rise. Obviously it didn't. I now have a choice between 2 yr fix at 1.69 or 2 yr tracker whose monthly repayments would be ?60 a month lower than the fixed. Both have product fees.

I'd get a spreadsheet and do a bit of number crunching, Azalea. I'd calculate the total cost over two years for:


- 2 years fixed at 1.69% + fees

- 2 years tracker @ your tracker rate + fees

- 1 years tracker @ your tracker rate + 1 year tracker at the rate +0.25% + fees


and then do the same with a couple of fee-free mortgages.


With the +0.25%, you have a better idea of the risk as well. Fees can make a real difference.

That should tell you what the difference and possible risk over the two years really is.

There will be a time in the next few years when a 5 year fix for those with stability and not looking to move is bargain of the century. When they rise they won't be coming back down again in a hurry.


I like fixed rates without fees in the current environment...and got a 2 year at 1.39% recently. The OP's deal is a good one - why risk a tracker if you can fix at 1.44...one of the cheapest rates in history?

DovertheRoad Wrote:

-------------------------------------------------------

> There will be a time in the next few years when a

> 5 year fix for those with stability and not

> looking to move is bargain of the century.


Maybe. Can't say with any certainty. Rates are likely to rise very very slowly.

DovertheRoad Wrote:

-------------------------------------------------------

> I like fixed rates without fees in the current

> environment...and got a 2 year at 1.39% recently.


A two-year fix without fees at 1.39%?? Who was that with? The best I could find was 1.99%.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Latest Discussions

    • I've lived in a flat on Dawson's Hill for 17 years. I have never felt unsafe coming home. I don't use the back paths in the dark at night, but I wouldn't do that any place as a woman on my own. 
    • Just wanted to post a strong recommendation for Will Westwood at Goose Green clinic. I have seen a variety of physios and doctors for a recurrent muscular pain issue over the last few years, to no avail. Will has just figured out and relieved the problem almost immediately! 
    • Some managers never reach adulthood and don't have a sufficent level of maturity to understand the difference between a technical role where you are constantly producing output for deadlines, and their own role which is reading (but never responding to) emails and talking crap all day. I used to sit in the office (surrounded by chitchat) & pointless meetings getting nothing done so I'd go to bed when I got home & set my alarm for 2am to do my work. This went on for about 10yrs before COVID. I'm an introvert so I don't have any WFH negatives....
    • Please look out for our dog he has slipped his collar outside  the plough East Dulwich Sainsburys brown spaniel called Lucky. 07872680592
Home
Events
Sign In

Sign In



Or sign in with one of these services

Search
×
    Search In
×
×
  • Create New...