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abidova

Mortgage Poser

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Hi Guys

would love to get opinions on this one.

Just coming to the end of a 3 yr cap rate (capped at 4.99%) which tracks BOE rate +.75 up to 4.99%, so for most of the Cap we were paying 4.99%, obviously this has gone down and down and is now at 1.25%

all the lender does at the end of the cap is take the cap off and the rate will continue to be 1.25% until of course Base rates change.

Lender has offered us the following options....

stay on the BOE rate +.75 for the remainder of the mortgage

fix for 2 years at 3.99%

fix for 5 years at 4.69%

am discounting the 2 year fix but considering the 5 year as rates will obviously rise - but do other posters think that over the next 5 years average base rate will be above 4%?

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Hi Guys

would love to get opinions on this one.

Just coming to the end of a 3 yr cap rate (capped at 4.99%) which tracks BOE rate +.75 up to 4.99%, so for most of the Cap we were paying 4.99%, obviously this has gone down and down and is now at 1.25%

all the lender does at the end of the cap is take the cap off and the rate will continue to be 1.25% until of course Base rates change.

Lender has offered us the following options....

stay on the BOE rate +.75 for the remainder of the mortgage

fix for 2 years at 3.99%

fix for 5 years at 4.69%

am discounting the 2 year fix but considering the 5 year as rates will obviously rise - but do other posters think that over the next 5 years average base rate will be above 4%?

Can you get another capped rate, even if it is higher? If not, I would suggest you stay with the variable and keep looking around for better deals (assuming you can refinance and switch vendors?)

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think my best bet will be to stick with the variable for as long as I can until other available products start to take off then jump in with a fix.

the other cap offered by the lender is capped at 5.75% and currently at 3.49% but only until 2012 so nothing special really.

As I paid a 25% deposit in 2006 they are willing to offer me any 75%LTV product even though LTV is probably closer to 85% now

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