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Hi. OK, so let's assume that I've found a house I like for a price I am willing to pay. Should I:

1. fix for 2 years

2. fix for 3 years

3. fix for 5 years

...and why? Thx for any help. B)

Fix for as long as possible I would say. Interest rates are not going down, only up. But of course you pay more for a longer fix and also get penalties for longer. If you don't see yourself going anywhere for the fixed period and can afford it then the longer the better IMO.

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2 year fixes are a waste of time. You'll be paying a premium to be fixed then after two years you'll be dumped onto an SVR just as rates a getting higher again.

Personally I would fix for as long as possible. Can you still get a 10 year fix for around 5%?

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I dont think it really matters anymore

they will screw you either way

you could get a 10 year fix 2-3 years ago for around 3%

that was probably the best option but of course its gone now

a 5 yr fix will eventually be at a lower rate than the SVR but by then

you will have been paying at a higher rate for so long you will save little overall if anything

and the next 5 yr fix will be a good deal higher

Personally I hope to pay cash outright within a few years and deny the bankers any of my money

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....Fixed often come with fees, check the fee divide by months of fixed and then recalculate the real cost of the fixed interest rate.....if going for fixed no less than five years, make sure it is portable if you move.... If going for variable see it is fully flexible to make extra payments at no penalty, interest is calculated daily and you are free to jump into a fixed at a time in the future at short notice without penalty. ;)

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A lot of people were recomending long term fixes on this site in 2008, right before rates crashed from 5 to near 0%.

However at the time, it seemed the most sensible thing to do.

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A lot of people were recomending long term fixes on this site in 2008, right before rates crashed from 5 to near 0%.

However at the time, it seemed the most sensible thing to do.

That's 'cos everyone could see the housing market had overheated and needed the brakes putting on.

Instead they just carried straight on and crashed the whole train.

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That's 'cos everyone could see the housing market had overheated and needed the brakes putting on.

Instead they just carried straight on and crashed the whole train.

Too true. It's impossible to make a completely rational decision as those in charge have lost their minds.

All I know is that you'll be lucky to find anything more than a 5 year fix now and with rates on fixed mortgages going up and the fees with them, what the banks think the future holds isn't too hard to guess. If you can only fix for 5 years you could well end up remortgaging in the middle of the biggest interest rate sh1t-storm the market has ever seen if the bond markets get their way.

Personally I'd hold off buying for a little while yet, the wind is blowing favourably now. Plus you have to remember that rising interest rates will accelerate the downwards pressures in the market. A decent capital saving on a cheaper house in a year or two's time should be worth substantially more than any additional interest you may need to pay on a mortgage taken out later on, rather than now.

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Hi. OK, so let's assume that I've found a house I like for a price I am willing to pay. Should I:

1. fix for 2 years

2. fix for 3 years

3. fix for 5 years

...and why? Thx for any help. B)

Do you have to buy now? (more accurately, do you have to buy with a mortgage now?)

IMHO interest rates will go up, house prices will go down, and buying now into that scenario is an invitation to the banks to shaft you...

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I dont think it really matters anymore

they will screw you either way

you could get a 10 year fix 2-3 years ago for around 3%

that was probably the best option but of course its gone now

a 5 yr fix will eventually be at a lower rate than the SVR but by then

you will have been paying at a higher rate for so long you will save little overall if anything

and the next 5 yr fix will be a good deal higher

Personally I hope to pay cash outright within a few years and deny the bankers any of my money

10 year fixes for 3% in 08/09? Are you sure? The news articles seem to state that fixed rates are coming up from the lowest point for 7 years. Meaning that the last time they were this low was 2004.

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What is the best fixed rate you can get for 2, 3 & 5 years?

What is the best tracker rate you can get?

Work out the savings on the tracker if everything stayed the same for next 2,3 & 5 years.

Then consider how quickly the BoE could put interest rates up in the next 2,3, & 5 years.

I personally would stick on a tracker as close to base rate as possible.

Phone around and go through the motions of having a fixed rate, drag it out for as long as the offer is available for. I believe some offers can be around for 6 months once you make contact.

Provided you put the surplus saved from being on a tracker back into your mortgage to pay it off more quickly you will be better off in the short term imo.

+1

life time tracker at the lowest rate possible. If you still want a fix go for as long as possible but check to see what the rate is when the fix ends remember if you go for a rate above 3.63% smi will not cover you.

EDIT just to say if you do go for the fix I would give less than a 30% chance of it working out in your favour

Edited by gf3

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Too true. It's impossible to make a completely rational decision as those in charge have lost their minds.All I know is that you'll be lucky to find anything more than a 5 year fix now and with rates on fixed mortgages going up and the fees with them, what the banks think the future holds isn't too hard to guess. If you can only fix for 5 years you could well end up remortgaging in the middle of the biggest interest rate sh1t-storm the market has ever seen if the bond markets get their way.

Personally I'd hold off buying for a little while yet, the wind is blowing favourably now. Plus you have to remember that rising interest rates will accelerate the downwards pressures in the market. A decent capital saving on a cheaper house in a year or two's time should be worth substantially more than any additional interest you may need to pay on a mortgage taken out later on, rather than now.

Since 2002 in my view.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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