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LittleSteroid

No 10Y Fixed On The Market? Or Maybe It's Just Crappy Broker?

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I just came back from mortgage broker. I want 100k with 25k deposit. Apparently there isn't any 10 years fixed mortgage availlable on the market. What is going on? :blink:

Here you go

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I just came back from mortgage broker. I want 100k with 25k deposit. Apparently there isn't any 10 years fixed mortgage availlable on the market. What is going on? :blink:

Not true, there was one through the Yorkshire at 4.99% last time I checked.

But they don't deal with brokers.

(You'll need 25% deposit).

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I just came back from mortgage broker. I want 100k with 25k deposit. Apparently there isn't any 10 years fixed mortgage availlable on the market. What is going on? :blink:

Why go a for a long fix at probably 4%+? Get a BOE base rate tracker for <+3%, maybe +2.5% is do-able, low application fee and no strings for early repayment. Re-assess the fixed rates next year or when BOE rate is over 1%.

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Out of curiousity - why did you try a broker in the first place? Clearly for anyone capable of using the internet 15mins of your time is far better spent than 30mins wasting it with a broker who has to get paid from the transaction and so will offer only more expensive options? Not trying top be rude, just genuinely interested at the reasoning?

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Out of curiousity - why did you try a broker in the first place? Clearly for anyone capable of using the internet 15mins of your time is far better spent than 30mins wasting it with a broker who has to get paid from the transaction and so will offer only more expensive options? Not trying top be rude, just genuinely interested at the reasoning?

I thought I can do a better deal. :D . There is in fact 4.99% 10y fixed from Yorkshire. Thanks.

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Out of curiousity - why did you try a broker in the first place? Clearly for anyone capable of using the internet 15mins of your time is far better spent than 30mins wasting it with a broker who has to get paid from the transaction and so will offer only more expensive options? Not trying top be rude, just genuinely interested at the reasoning?

As I under stand it some times there are deals that only brokers can access but defiantly DYOR first.

I think there is only one mortgage product out there that any body who has thought long and hard should take.

Life time tracker

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<br /><br /><br />

From memory alone a few years ago, there 20 to 30 times that number of 10 year fixes available. I think that speaks volumes of where the *banks* rates are going over the next 10 years. Base rates are now meaningless.

What have base rates (ie O/N) got to do with 10y fixed?

GBP swaps 5y 2.89% 10y 3.75%. add your margin and there you go. These have come down a bit recently.

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Why go a for a long fix at probably 4%+? Get a BOE base rate tracker for <+3%, maybe +2.5% is do-able, low application fee and no strings for early repayment. Re-assess the fixed rates next year or when BOE rate is over 1%.

Peace of mind has a lot of value IME. There's always the chance of something unpredicatable happening causing an interest rate shock. Here's a recent example: http://news.bbc.co.uk/1/hi/7694785.stm

Edited by mikthe20

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What have base rates (ie O/N) got to do with 10y fixed?

GBP swaps 5y 2.89% 10y 3.75%. add your margin and there you go. These have come down a bit recently.

Point taken....I think.

I take it the swap rate is the rate at which the banks borrow from one another or in other words, secure long term lending and borrowing. Do I take it then that the banks don't borrow from the BoE at 0.5% and sell it on at over 5% as the banks only get the 0.5% rate over a very short period of time? If so, what period of time is the usual?

I'm genuinely interested about all this as for peace of mind, the longer the term, the better.

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"4.99% until 30/06/21"

Not bad.

Thanks TC.

+ the.ciscokid brokerage fees :).

If I was in the market for a mortgage at the moment, I would probably go for that to be honest.

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+ the.ciscokid brokerage fees :).

If I was in the market for a mortgage at the moment, I would probably go for that to be honest.

Yes, me too, probably.

The alternatives may turn out to be 1% cheaper, or 5% dearer.

I would fix it, and call it "peace of mind" fee.

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Odd, I'm thinking of switching this mortgage from my current fixed rate, shame I'll have to fork out 3k to break out though. :( Worth it?

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Odd, I'm thinking of switching this mortgage from my current fixed rate, shame I'll have to fork out 3k to break out though. :(Worth it?

The devil will likely be in the detail of your existing deal... hard to say otherwise.

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Point taken....I think.

I take it the swap rate is the rate at which the banks borrow from one another or in other words, secure long term lending and borrowing. Do I take it then that the banks don't borrow from the BoE at 0.5% and sell it on at over 5% as the banks only get the 0.5% rate over a very short period of time? If so, what period of time is the usual?

I'm genuinely interested about all this as for peace of mind, the longer the term, the better.

The swap rate is the rate that a bank can swap floating for fixed. If they pay floating rates for their deposits (let's say 3 month Libor), they can swap this for 5y fixed in the market and receive a fixed rate for the period, which they than pass on to you with a margin.

Swap rates are the key determinant for fixed rate mortgages. You can see rates here:

swap rates

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<br />The swap rate is the rate that a bank can swap floating for fixed. If they pay floating rates for their deposits (let's say 3 month Libor), they can swap this for 5y fixed in the market and receive a fixed rate for the period, which they than pass on to you with a margin. <br /><br />Swap rates are the key determinant for fixed rate mortgages. You can see rates here:<br /><br /><a href='http://www.swap-rates.com/UKSwap.html' class='bbc_url' title='' rel='nofollow'>swap rates</a><br />
<br /><br /><br />

Thanks for the reply, however I'm still no more the wiser really. Perhaps that's more down to the fact that I'm not entirely clued up on how banks really work, or swap rates either for that matter. I'll read up on it at some point. In the mean time how would you explain the drought of long term fixed mortgages as compared to a few years ago, why is this. Also, what is the relevance of the BoE rate in terms of bank lending to people for mortgages or other loans?

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<br /><br /><br />

Thanks for the reply, however I'm still no more the wiser really. Perhaps that's more down to the fact that I'm not entirely clued up on how banks really work, or swap rates either for that matter. I'll read up on it at some point. In the mean time how would you explain the drought of long term fixed mortgages as compared to a few years ago, why is this. Also, what is the relevance of the BoE rate in terms of bank lending to people for mortgages or other loans?

I think the base rate is the over night rate that the bank of england will pay a bank for depositing money with it. But I'm not to sure either.

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  • 284 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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