27 replies to this topic

[Zoobeef]

Finally it's that time again!

I made the mistake of fixing at 4.89% for 5 years as I had a 90% LTV but thankfully it's finally up.

I've been hammering the repayments over the last 5 years so I can get a sensible rate now and thankfully rates have stayed low!

 

HSBC have said in their letter that with what I have left and current value that my LTV will be 59% (overpaying pays off!)

The rates they are offering for existing customers are 

10 year fix at 2.64%

5 year fix at 1.79%

3 year fix at 1.44%

2 year at 1.14%

Lifetime tracker at 2.09%

 

Obviously I'll be looking around but what do people think.

I can't wait to be on a much lower rate and still be overpaying by more than double though. By by mortgage

[172Cup]

A key part of this decision has to be based on how many years you have left on your mortgage? And how many you have left if you carry on overpaying?

[Duncan VXR]

Well done and good to get in that strong position 👍 Cant advise on best option but if you are able to continue over paying longer term I would be looking at 3 or 5 year foxed and don't sorry about it 😉 DG

[Zoobeef]

A key part of this decision has to be based on how many years you have left on your mortgage? And how many you have left if you carry on overpaying?

25 years if it carried on at the proper repayment. About 17 if I carried on overpaying.

 

So I was thinking of remortaging for 20 years and then overpaying to knock that down.

[Zoobeef]

Well done and good to get in that strong position 👍 Cant advise on best option but if you are able to continue over paying longer term I would be looking at 3 or 5 year foxed and don't sorry about it 😉 DG

 

Cheers, I think that's what I'm leaning towards.

I really curbed my spending over the last 5 years and concentrated on the mortgage.....not!

[CHILL Gone DUTCH]

Intrest rates are going to rise tie in for as long as possible If I was you I would wait a bit longer to tie in but try and time it before intrest rates go up

[Wolfstone]

Are those rates you've quoted mark absolute or are they plus the BoE base rate? If they are absolute I'd be inclined to fix at either 5 or 10 years.

[Zoobeef]

Intrest rates are going to rise tie in for as long as possible If I was you I would wait a bit longer to tie in but try and time it before intrest rates go up

That

That's exactly what I thought 5 years ago and look what happened! Haha.

[Zoobeef]

Are those rates you've quoted mark absolute or are they plus the BoE base rate? If they are absolute I'd be inclined to fix at either 5 or 10 years.

They are absolute.

I haven't looked anywhere else yet either as that's just what my mortgage coy has sent me as offers.

I wouldn't mind paying this thing off by the time I'm 40 (8 years) so I need to watch overpayment charges. Although I'll probably move in that time so all this will change!

[ArticMonkey]

I did the same in jan. Fixed for 5 years at 2.1% with no fees. I'm now with first direct (owned by HSBC) which do identical rates really. If you don't have to go through the hassle of switching with another provider then they're good rates. I went 5 years as that gets us past brexit and for me that mattered. Didn't want to re mortage at a time of unrest and uncertainty.

[CHILL Gone DUTCH]

Inflation is on the move So intrest rates will rise to try and curve inflation I'm just hoping to get to 2019 before intrest rates rise

[anz3001]

I fixed with Nationwide at the beginning of the year. Most overpayments are limited to 10% annually from why I've seen. Rates can surely only go one way now but fixing for too long may cost you if you plan to move. I only fixed for 3 years as intend to move the current house on to a buy to let and take as much equity out as possible for a new place.

[hairy]

Looks like good planning Mark, have you had a look at

 

https://www.moneysav...=MonthlyPayment:

 

and

 

https://www.moneysup...types=4&types=5

[Crunchie]

If you fix, then you will normally have a redemption penalty to pay which can be eye watering should you end your mortgage early. Trackers give you the flexibility of fixing at a later date when you think interest rates might move, for no penalty. If we knew when interest rates are going to move then we would all be much wealthier than we are today. This is the risk. However, as you dont know when or if they will move I would give put yourself in a position of flexibility by Tracking......cheaper rates on a tracker too and no over payment fees to worry about.

[The Batman]

I don't think interest rates will be rising with brexit about to kick in. All in my opinion I've been risking it for past 4 years and it's paid off! I have to renew next year so not sure what the rates are like at the mo 15 years to go unless kids come

[P11 COV]

If you want flexibility in overpaying it might be worth looking as offset mortgages. Just shove all your spare cash in a linked account (and your main current account) and that is knocked of your mortgage for interest purposes.

 

It also means you can take the money back again should you ever be tempted to but that Evora 400

 

We've been doing this with first direct for the last 7 years or so and haven't paid a penny in interest for the last 5.

[jonnyboy]

I'd go 2-3 years. As previously mentioned its not particularly the rates its your flexibility if you want to move. We have just almost fallen foul of fixing for too long. We were in for 5 years and then unexpectedly decided to move. Luckily we were able to port with Santander but the way banks are at the moment the wind changes direction and they change all their lending criteria and you might find yourself not fitting their criteria. If you think "that wont happen to me" think again. Our buyer from the house we just moved out of got refused a mortgage with Natwest. She's an airline pilot.

 

Keeping flexibility is much more important than what is really at the moment very little difference in rates. If you can fix for 10 years at 2% that tells you all you need to know about interest rates. You'll never beat the bankers but I would always choose fixing length based on circumstances rather than if you think you will outfox the city of London on rates. 

 

 

Edited by jonnyboy, 13 May 2017 - 07:01 AM.

[C8RKH]

After 20 years I finally paid my mortgage off 18 months ago so I am in the opposite position and keenly awaiting interest rates to rise!

 

The 5 year deal looks good, you need to be fixing for at least that as IMHO with Brexit and it's uncertainty between now and 2020 you need to get through this next 5 year period well to 2022 and beyond.  The negotiations have not started yet really so all is quiet on the western front, but the blitzkrieg could start at any point from September onwards (don't think anything much will happen before then as Europe goes on holiday for July and August).

Edited by C8RKH, 13 May 2017 - 07:34 AM.

[jonnyboy]

The thing is the bumpier things are the less likely rates are to rise. Interest rates are a blunt tool for dealing with inflation which used to be the only reason they moved up and down. We are in for a lifetime of low rates so I think the banks new game is trapping people in long deals and making the money back on redemption fees. Ours redemption was 4k and funnily enough we crunched all the numbers with "cheaper" deals and would you believe it we were always better off porting at a higher rate. The banks have picked up that we are more transient than we used to be and generally these days people move around a lot more. Baby boomers are leaving some nice legacies these days so an unexpected windfall and house move can present themselves. Didnt happen for us like that I might add! 

[hairy]

I don't think interest rates will be rising with brexit about to kick in. All in my opinion I've been risking it for past 4 years and it's paid off! I have to renew next year so not sure what the rates are like at the mo 15 years to go unless kids come

 

You're going to sell a kid to pay it off?