FOAK: Mortgages

Decision time and I'm crap at this sort of thing.

Do I take a 2 year fixed at 4.79% or take a punt on interest rates coming
and take a tracker at 0.04% above base rate currently also at 4.79%. Taking
the latter I could fix it at a later date if there are any good deals as I'm
currently fixed on 3.95% - I like the comfort zone of knowing exactly what I
have to pay for a given period, but OTOH it would grieve me to be paying
over the odds.

TIA

Buzby

 

I should think you talk to a proper mortgage advisor.
No doubt one shall be along shortly!

'Hog

 

Interest rates *may* come down over the next two years but not by any great
amount so you are very unlikely to be paying significantly over the odds.
I'd go for the fixed rate

--
Alex

Hermes: "We can't afford that! Especially not Zoidberg!"
Zoidberg: "They took away my credit cards!"

www.drzoidberg.co.uk
www.sffh.co.uk
www.ebayfaq.co.uk

 

Just arranged a fixed for 5 year 4.99% with Alliance and Leicester
I'm an Accountant, but that does'nt mean I'm right in my actions

 

Seconded.
--
Catman MIB#14 SKoGA#6 TEAR#4 BOTAFOF#38 Apostle#21 COSOC#3
Tyger, Tyger Burning Bright (Remove rust to reply)
Alfa 116 Giulietta 3.0l (Really) Sprint 1.7 75 TS 156 TS S2
Triumph Speed Triple: Black with extra black bits
www.cuore-sportivo.co.uk

 

Fixed on 4.79% is a fairly competitive rate. Rates are unlikely to drop all
that sharply within 2 years, and there's a limit to how far they can drop
full-stop given that banks need to pay their savers something and still make
a profit

 

If you don't intend to pay off some or all of the mortgage or move or do
anything else that may involve a change to the amount borrowed, then the
fixed is probably the way to go. If you intend to do any of the previously
mentioned things then the tracker may be better so you avoid any penalty
charges etc.

Ish

Dave

 

My fixed-at-4.79% deal lets me pay off up to 10% of the capital in a given
year. Given that 10% of the capital equals "a very nice motorbike indeed" I
doubt it's a feature I'll ever make use of, mind ...

 

If they drop far enough, they won't have any savers to pay.

Japanese overnight rate is 0.03625%

cf Sterling at 4.74500%


--
| ___ Salad Dodger
|/ \
_/_____\_ GL1500SEV/CBR1100XXX/KH500A8/TS250C
|_\_____/_| ..75830../..18846.../..3214./.19406
(>|_|_|<) TPPFATUICG#7 DIAABTCOD#9 YTC#4 PM#5
|__|_|__| BOTAFOT #70 BOTAFOF #09 two#11 WG*
\ |^| / IbW#0 & KotIbW# BotTOS#6 GP#4
\|^|/ ANORAK#17 IbB#4
'^' RBR Landmarks: 24 Pts: 400 Miles: 1589

 

So does ours, we've used it three times out of the six years we've
been here.

--
| ___ Salad Dodger
|/ \
_/_____\_ GL1500SEV/CBR1100XXX/KH500A8/TS250C
|_\_____/_| ..75830../..18846.../..3214./.19406
(>|_|_|<) TPPFATUICG#7 DIAABTCOD#9 YTC#4 PM#5
|__|_|__| BOTAFOT #70 BOTAFOF #09 two#11 WG*
\ |^| / IbW#0 & KotIbW# BotTOS#6 GP#4
\|^|/ ANORAK#17 IbB#4
'^' RBR Landmarks: 24 Pts: 400 Miles: 1589

 

I've overpaid every year, and shall continue to do so until I can afford
to go on the dole...

 

Salad Dodger scribbled on the back of a napkin:

Looks like it's gone up then - I can remember I had to fix a piece of
software a couple of years ago because it couldn't properly handle the
negative O/N and 2D interest rates...

 

I asked about dole after I'd given up my job. Used to be, as long as one
had paid one's stamp, then dole was forthcoming (had to wait 6 months or
summink when it was voluntary unemployment). It appears that now, only
pikeys can get dole. You have to be skint before the "insurance" pays
out. Lovely incentive to save/work hard etc. blah blah...

--

Paul.
CBR1100XX SuperBlackbird
BOTAFOT #4
BOTAFOF #30
MRO #24

 

I may be wrong, but I fixed last week for 2 years at 5.09%. Could
have had a tracker again, like I've had for the last 4 years, but I
have a feeling rates will go up. Maybe not much but enough that a
tracker will have me paying more.

And the current difference between the monthly payments on a tracker
and fixed was only 3 quid anyway.

 

Why do you think they will go up?

Most of the stuff I've read has hinted at gloom and doom in the consumer and
manufacturing sectors, hinting towards, if anything, a reduction.

 

The tracker that's just finished has been going up fairly steadily
over the last year. I don't think they rocket, just go up a few more
quarters. Enough to put the tracker above the fixed rate.

And even if they do go down, I doubt they'll drop to 2003[1] levels
again for a while so I won't be too pissed off.

On a personal front, it's important for me to know exactly how much my
payment is going to be for the next year or so, so a 2 year fixed at a
decent rate was perfect.

[1] I really wish I'd fixed for 5 years then. 3 an' a bit percent!

 

It's a funny old tracker, then, as the base rate hasn't moved for ten
months.
--
| ___ Salad Dodger
|/ \
_/_____\_ GL1500SEV/CBR1100XXX/KH500A8/TS250C
|_\_____/_| ..75830../..18846.../..3214./.19406
(>|_|_|<) TPPFATUICG#7 DIAABTCOD#9 YTC#4 PM#5
|__|_|__| BOTAFOT #70 BOTAFOF #09 two#11 WG*
\ |^| / IbW#0 & KotIbW# BotTOS#6 GP#4
\|^|/ ANORAK#17 IbB#4
'^' RBR Landmarks: 24 Pts: 400 Miles: 1589

 

<checks spreadsheets>

Ooh, yeah. Sept 04 was my last rate change. It climbed steadily over
2004, I'm forgetting we're halfway through 2005 now. Been a busy old
year.

Hmm, oh well, deed is done now and I'm stuck with it for a couple of
years[1].




[1] Unless I want to pay redemption fees, which I don't. Will be able
to change it when I move by transferring the balance of the mortgage
to another one with Nationwide.