baserateisirrelevant Posted June 9, 2009 Share Posted June 9, 2009 Friend is re-mortgaging. I have plagued them to fix (convinced higher rates on the way given QE, Braun's spending plans, and a sterling currency crisis). The options are to fix at 3 yrs for 3.5% or 5 yrs at 4.5%. I think 5 years is better given my personal view on rates, but would be interested in thoughts. Quote Link to comment Share on other sites More sharing options...
Godley Posted June 9, 2009 Share Posted June 9, 2009 10 years imho Quote Link to comment Share on other sites More sharing options...
1888 Posted June 9, 2009 Share Posted June 9, 2009 10 years imho +1 I would take a lifetime fix if I could get one at the moment 10yrs seems to be the longest option and they are few and far between Quote Link to comment Share on other sites More sharing options...
baserateisirrelevant Posted June 9, 2009 Author Share Posted June 9, 2009 +1I would take a lifetime fix if I could get one at the moment 10yrs seems to be the longest option and they are few and far between Any ideas on a decent 10yr fixed product? The ones I have looked are with HSBC? Also, a follow up question. Said friend has £40k to park (doesn't want to put into mortgage). I have advised 10k in index linked gilts, 10k in physical silver, 10k in a Singapore REIT, 10k in a agriculture commodity fund. Any comments guys? thks Quote Link to comment Share on other sites More sharing options...
kilroy Posted June 9, 2009 Share Posted June 9, 2009 +1I would take a lifetime fix if I could get one at the moment 10yrs seems to be the longest option and they are few and far between Brittani do 15 years, but at 6.2% Quote Link to comment Share on other sites More sharing options...
1888 Posted June 9, 2009 Share Posted June 9, 2009 Brittani do 15 years, but at 6.2% good indication of where things are going Abbey doing a 10yr for 4.99% (25% deposit) Principality at 5.19% (40%) deposit http://www.moneysupermarket.com/mortgages/ Quote Link to comment Share on other sites More sharing options...
Minos Posted June 9, 2009 Share Posted June 9, 2009 Any ideas on a decent 10yr fixed product? The ones I have looked are with HSBC?Also, a follow up question. Said friend has £40k to park (doesn't want to put into mortgage). I have advised 10k in index linked gilts, 10k in physical silver, 10k in a Singapore REIT, 10k in a agriculture commodity fund. Any comments guys? thks Offering financial advice is a sure fire way to lose friends when it goes wrong. Quote Link to comment Share on other sites More sharing options...
kara gee Posted June 9, 2009 Share Posted June 9, 2009 Offering financial advice is a sure fire way to lose friends when it goes wrong. +1 NEVER give them direct advice. Just suggest what you might do if you were them, followed by something like "This is only my opinion, I'm no expert" If the options are 5 or 3 years, go for 5. 10 would be better though. Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted June 9, 2009 Share Posted June 9, 2009 Be sure to check any exit penalties. Sometimes unforeseen relocation becomes essential (new job in different area, for instance) before the end of the fixed term, and early redemption penalties can be very large from what I remember reading in various financial advice columns over the years. Quote Link to comment Share on other sites More sharing options...
Phil_Spencer Posted June 9, 2009 Share Posted June 9, 2009 (edited) only problem with 10 years is that it may severely limit the overpayment options. When my fix comes up for renewal, I'm probably going to leave half of it on the SVR and try and pay it off asap, and fix the other half for 5yrs (Maybe less depending on the difference between rates at 3yr/5yr). Edited June 9, 2009 by Phil_Spencer Quote Link to comment Share on other sites More sharing options...
FortuneFTB Posted June 9, 2009 Share Posted June 9, 2009 I'd personaly gor for a base rate tracker with no tie in period or penaltys for early redemption, and then bail and get a fix when interest rates look like rising Quote Link to comment Share on other sites More sharing options...
Godley Posted June 9, 2009 Share Posted June 9, 2009 I'd personaly gor for a base rate tracker with no tie in period or penaltys for early redemption, and then bail and get a fix when interest rates look like rising What do you think the rate is going to be when you bail? The banks will be one jump ahead of you. 75% of fix rate deals bank wins, to get amongst the 25% you have to be ahead of the curve. Quote Link to comment Share on other sites More sharing options...
barrabus Posted June 9, 2009 Share Posted June 9, 2009 Friend is re-mortgaging. I have plagued them to fix (convinced higher rates on the way given QE, Braun's spending plans, and a sterling currency crisis). The options are to fix at 3 yrs for 3.5% or 5 yrs at 4.5%. I think 5 years is better given my personal view on rates, but would be interested in thoughts. 5 Years at 4.5% snap thier hands off ! Quote Link to comment Share on other sites More sharing options...
the_austrian Posted June 9, 2009 Share Posted June 9, 2009 Any ideas on a decent 10yr fixed product? The ones I have looked are with HSBC?Also, a follow up question. Said friend has £40k to park (doesn't want to put into mortgage). I have advised 10k in index linked gilts, 10k in physical silver, 10k in a Singapore REIT, 10k in a agriculture commodity fund. Any comments guys? thks There doesn't seem much point in holding out on putting the £40k into the house, when £30k of what you advise is also "equity", all except the Gilts... The only reason to hold onto the cash is as a hedge against deflation to make sure you can keep paying the interest and not get repossessed, if the house ever goes underwater. Quote Link to comment Share on other sites More sharing options...
barrabus Posted June 9, 2009 Share Posted June 9, 2009 Brittani do 15 years, but at 6.2% That will look dirt cheap in less than 2 years. Quote Link to comment Share on other sites More sharing options...
bearwithasorehead Posted June 9, 2009 Share Posted June 9, 2009 Gotta reiterate what others have said: financial advice and friendship are two things that often cancel each other out! People have v different understanding of risk - tracker for one is a nightmare - fix for your friend could come back to haunt you - what if rates don't rise for a year? He/she'll be really annoyed on that 5% fix in 12 months, even if in the longer term it is a better idea! sorebear Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 9, 2009 Share Posted June 9, 2009 That will look dirt cheap in less than 2 years. amd so will the purchase you made, for the self same reason. Quote Link to comment Share on other sites More sharing options...
agmoldham Posted June 9, 2009 Share Posted June 9, 2009 I'd personaly gor for a base rate tracker with no tie in period or penaltys for early redemption, and then bail and get a fix when interest rates look like rising The only trouble with that is that things moved very quickly on interest rates when they came down and I suspect they'll go equally is quickly when they shift back upwards. I think the 10 year fix at 5% is a sure fire winner as I'm guessing that (base rate) interest rates will be above 10% in a couple of years. Quote Link to comment Share on other sites More sharing options...
Victor_Broom Posted June 10, 2009 Share Posted June 10, 2009 That will look dirt cheap in less than 2 years. Also, no up front fees and decent ERC. http://www.britannia.co.uk/home/_site/chan...ixed-rates.html Quote Link to comment Share on other sites More sharing options...
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