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Ash4781

Short Term Fixed Rate Mortgages

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I was thinking with the Boe's new strategy does this present a problem for fixed rate mortgage product selling? Demand will presumably fall in the shorter terms but will advisors end up mis selling the products from now on? What i am getting at is paying to protect a risk that doesnt exist? i suppose lenders could say its a prevention over risk of a svr as opposed to bank rate.

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What i am getting at is paying to protect a risk that doesnt exist?

Why do people insist on looking for a benefit for themselves from fixed rate - thats not what they are there for, they are there to rake in a fear premium from punters. I don't recall any time in the last 25 years where lenders have offered fixed rates and were subsequently caught out by a surprise IR move in the wrong direction. Conversely they have make very big profits on moves that have benefited them.

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I think a tracker would be best in this situation.

Here in Ireland people with trackers have done well in a way that their repayments are low, but negative equity is high. SVR in Ireland is high, because it is the banks funding costs that are high.

SVR is a gamble because you are gambling on banks funding costs. The banks have to sell their debt so they can get funds to provide new mortgages, if BOE says outright that they will buy 100% of new mortgage backed securities for the next X years then you are safe. ;)

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A 5 year fix below 4% is good value, simple as. I don't see why you'd want to tempt fate over the next 5 years when you can lock in such a good deal. A lot can change in today's markets, they're very erratic and sometimes the government can lose control.

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A 5 year fix below 4% is good value, simple as. I don't see why you'd want to tempt fate over the next 5 years when you can lock in such a good deal. A lot can change in today's markets, they're very erratic and sometimes the government can lose control.

I'm buying at the moment and am applying for the N&P 2.74% fix for 5 years, with virtually no fees. As mortgages go, seems pretty good

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60% LTV

Norwich & Peterborough Building Society

5 Year fixed (60 months)

60% LTV

Fixed @ 2.74%

£200 Cashback £295 Fee

edit: Good luck btw. Time is catching up with me also...

Edited by DarkHorseWaits

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60% LTV

Norwich & Peterborough Building Society

5 Year fixed (60 months)

60% LTV

Fixed @ 2.74%

£200 Cashback £295 Fee

edit: Good luck btw. Time is catching up with me also...

Blimey that seems cheap. The boes unintended consequences that mortgage profit margins have collapsed? This is not advice.

Edited by Ash4781

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  • 238 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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