Mortgages

[seagullsovergrimsby]

Bank of England independent of Government, so rates will be determined by the global markets and BoE responses to our economy.

Then god forbid Moribund and Balls are given a second go at a government spending spree, either alone or in a coalition:
- rates would have to rise if a Balls borrowed spending spree led to inflation and/or global markets reacting badly to Labour's policies and their effects.

As I posted , the money men don't trust Labour but absolutely adore the Tories.

 

[chimneys]

that would be a 0.25% rise every quarter you're pencilling in. and as we wont probably be seeing in anything until 2015, a couple of 0.5% hikes will be needed to hit that target. with inflation trending downwards and below target, the question is, where do you expect the surge in growth to come from that will lead to this rise?

Thanks, you saved me the job. And to add:

1. Surely US would know what HSBC's fees are if he advises on whole of market, with HSBC being I guess one of the biggest mortgage providers and certainly amongst the most competitive at present. Fees are very clearly set out on their website.

2. Any thought to borrower's overpaying possibilities going forward when advising on here what product to take? Tracker wins hand over fist if there is a good chance borrower's income will dramatically rise over locked in period enabling early pay off/big overpayments which can be done with a tracker but not fixed.

 

[surrey jim]

I am ow expert, but Gareth Glover at Haven Homes is your man. Saved me a few bob when I changed mortgage companies.

Second this, saved me near on £150 per month. Would well recommend Gareth

 

[bomber130]

Thanks, you saved me the job. And to add:

1. Surely US would know what HSBC's fees are if he advises on whole of market, with HSBC being I guess one of the biggest mortgage providers and certainly amongst the most competitive at present. Fees are very clearly set out on their website.

2. Any thought to borrower's overpaying possibilities going forward when advising on here what product to take? Tracker wins hand over fist if there is a good chance borrower's income will dramatically rise over locked in period enabling early pay off/big overpayments which can be done with a tracker but not fixed.

Best I could afford to over pay is £120.00per month on the tracker as long as the rate does not rise. Can over pay 20% on the fixed if I can afford it, am currently on £38,000pa which includes my RAF pension. Don't expect my civil service wage to rise by to much over the next few years

 

[Butch Willykins]

Second this, saved me near on £150 per month. Would well recommend Gareth

Thirded! Gareth sorted my mortgage, cracking deal with no fuss at all. Highly recommended.

 

[chimneys]

Best I could afford to over pay is £120.00per month on the tracker as long as the rate does not rise. Can over pay 20% on the fixed if I can afford it, am currently on £38,000pa which includes my RAF pension. Don't expect my civil service wage to rise by to much over the next few years

I'm no expert, but from what you/others have said, definitely 5 year fixed at that good a rate sounds right for you. Its just I would have thought potential to substantially overpay would be in an advisor's thoughts prior to recommendation.

 

[Bold Seagull]

Bank of England independent of Government, so rates will be determined by the global markets and BoE responses to our economy.

Then god forbid Moribund and Balls are given a second go at a government spending spree, either alone or in a coalition:
- rates would have to rise if a Balls borrowed spending spree led to inflation and/or global markets reacting badly to Labour's policies and their effects.

It is always Labour that causes these sharp spikes in interest rates due to their handling of the economy as this graph illustrates:

 

[Deleted member 18477]

Go with the 5 year fixed pal! Peace of mind is a blessing in this current economy.

I'm remortgaging soon and I will go for the longest fixed I can as long as the payments don't increase massively. In which case I will go with a smaller fixed. Maybe 3 instead of 5. But 5 year fixed would be ideal!

 

[chimneys]

Go with the 5 year fixed pal! Peace of mind is a blessing in this current economy.

I'm remortgaging soon and I will go for the longest fixed I can as long as the payments don't increase massively. In which case I will go with a smaller fixed. Maybe 3 instead of 5. But 5 year fixed would be ideal!

If your loan to value is less than 60% you can get an incredible 2.94% 5 year fix with HSBC at present, albeit with a £1499 booking fee.

 

[ditchy]

At the end of the day only you can decide but what you have to think about is that the extra 60 per month is the cost for peace of mind and security over a five year period . If you feel that you don't mind having the thought in the back of your mind (what if rates go up can I pay the extra costs) and you are comfortable with that then go tracker . Most people I know err on the cautious side. You also have the added knowledge that your earnings are relatively fixed. Ie RAF pension , so surely it makes sense to fix your costs .

 

[Dunk]

I just got a 5-year fixed at 3.19% from Halifax. No arrangement fees- in fact no fees at all. Might be worth a look.

The economy is picking up and house prices are starting to look like a bubble again, so I would expect interest rates to rise and possibly quite soon. Go for a fixed rate.

 

[Bozza]

Also just taken a 5 year fix at, I think, 3.19% with Santander.

It's the first time that I've not taken the 'safe' option with a mortgage.

 

[Super Steve Earle]

Why hasn't HSBC advised you on what's best for you?

 

[kingcole]

The question should not be whether your tracker rate will be higher in the next 5 years. Think of all the time until the first (albeit inevitable increase) that will likely come some time in 2015 that you will be saving.

Take the tracker. If you are comfortable with the extra £60 that you would pay on the five year fix then overpay your mortgsge by this amount. If the rate increases you will still be in front, just not as much, so decrease your overpayment.

This is the best option IMO

 

[kingcole]

Why hasn't HSBC advised you on what's best for you?

That's not the job of the bank. They can only point out the features of their eon product.

Op would need to pay for advice or use the services of s broker (again with a fee) to get advise on other market products.

Fortunately for him, advise is free on here and it comes from a mix of real world people

 

[ditchy]

Why hasn't HSBC advised you on what's best for you?

Because like all other banks they can only advise on their products not anyone elses. That's why its sometimes best to go to an independent.

 

[bomber130]

I just got a 5-year fixed at 3.19% from Halifax. No arrangement fees- in fact no fees at all. Might be worth a look.

The economy is picking up and house prices are starting to look like a bubble again, so I would expect interest rates to rise and possibly quite soon. Go for a fixed rate.

Thanks for this have booked an appointment with Halifax will try them given there's no fees. Thanks everyone for your comments

 

[Uncle Spielberg]

Thanks for this have booked an appointment with Halifax will try them given there's no fees. Thanks everyone for your comments

The Halifax put their rates up this week. It is now 3.49% up to 60% ltv. Over 60% ltv and it is 4.28%. Lenders change rates frequently and long term fixed rates and generally on the up. Lenders can no longer do " non advised " mortgages they have to do a full interview which may take 2-3 hours.

 

[wakeytom]

Because like all other banks they can only advise on their products not anyone elses. That's why its sometimes best to go to an independent.

Who I hope will recommend the best mortgage and not one that is near best and offers them the best comish!

Rates are only likely to go one way but as we have seen in Europe they can go down further, also rises are not likely till next year IMO and at worst will move 25 bps and it will take a further 3-5 years for rates to move up to 150 bps (1% increase from now) although I would always choose a mortgage that lets you sleep at night and not keep you up worrying about rate rises.

 

[Uncle Spielberg]

Who I hope will recommend the best mortgage and not one that is near best and offers them the best comish!

Rates are only likely to go one way but as we have seen in Europe they can go down further, also rises are not likely till next year IMO and at worst will move 25 bps and it will take a further 3-5 years for rates to move up to 150 bps (1% increase from now) although I would always choose a mortgage that lets you sleep at night and not keep you up worrying about rate rises.

1% increase over 3-5 years ? So 1.5% BBR in 2017-2019 ? I think it will go up to 3% during that period. Even that is the lowest it has been for around 400 years.