New mortgage deal - fix two, three or five years?

[gibby]

I've ported mortgages across when I've moved a couple of times and had no problems what so ever. Maybe you need to stop going to those loan sharks.

[Diamond Hell]

You know that the rates are usually portable don't you ? So even if you move you will keep the same interest rate on what's left of your original balance. Unless of course you're moving abroad and selling up, in which case you would get stung.

We tried porting ours across when we moved down here.

FAIL

'I'm afraid we've changed our lending terms and you no longer meet them, so if you want to move you would need to either find <a five figure sum> to bring your level of equity up to meet our requirements or find another provider.

We found another provider.  Chelsea Building Society are no longer offering mortgages apparently, so probably best off out of that.

Now coming back to thinking about a 2 year fix, followed by a five year fix, for various reasons.

I'll never hear the end of it..... unless we can't get as good a deal in two years as we can at the moment.... in which case I'll just have to pay the extra, offset with the smug feeling of 'see I told you we should have gone for a five year fix' 

[raferackstraw]

imo never pay them anymore then you have to, so if the 2yr deal is free then thats what i go for, who the hell knows what happens in 2 yrs time?
they are banking on you paying an extra 30 a month to secure something you may never need, more money in their coffers, why not pay the extra 30 on your mortgage if it repayment?
just re-done mine and they kept trying to add in the 30000 endowment that finishes next month which would have cost me 700 in penalty fees for paying back before the fixed deal is finished, boy did they get short shrift.

[Diamond Hell]

exactly the point i was trying to make. but people know for deffinate what the financial future holds. must have crystal balls or something.

You can't spell definite, I'm not terribly likely to listen to you.

Plus neither you nor raferackstraw seem to understand the financial pain that would be experienced if rates went up in two years time and I wasn't able to secure a deal as good as the five year fix I can get now.

How much further down are rates likely to go from where they are now?!

[Luke1981]

Thom ,I reckon they will go down to 0.25% due to inflation rates. Its a gamble mate! You need to get independent financial advice on this subject!

[Diamond Hell]

Thom ,I reckon they will go down to 0.25% due to inflation rates. Its a gamble mate! You need to get independent financial advice on this subject!

I know it's a gamble and I've got some pretty solid thoughts on it myself.  The last thing I'm going to do is get some 'independent financial advice' from an 'IFA' because I don't trust secondhand money salesmen. 

I would rather see the interesting things all manner of people have to say on the subject because it gives the widest variety of views and slants I might not have thought of, which is helpful.  Interesting to see views on other forums as well. 

[Seanl]

I fixed for 5 years, 4 years ago. About 3 months after doing it, thanks to the so called expert "mortgage advisor", interest rates dropped rapidly. He got his nice commission, and I got seen off! I'd go for two years personally. What does the extra percentage in rates translate to overall? Is your mortgage likely to rise by an extra £20 or £30 pcm if rates rise a little? I don't think they will over that period for you to see any benefit by taking them. I was on a tracker previously, and the range was only about £30 over the 5 years I had that. (Admittedly it was only a 75k mortgage at the time though). Its a gamble whatever you do, but do what you feel is right for you, and don't always take the "experts" advice as gospel.

[Diamond Hell]

If rates go up by 0.4% on the deals on offer when I come to renew then I'll have covered any disadvantage of going longer.

[R32UK]

i dont know, cant see the future 

if you are that sure they are going down

take a guess... in fact take 2. I bet you could still be wrong 

[raferackstraw]

exactly the point i was trying to make. but people know for deffinate what the financial future holds. must have crystal balls or something.

You can't spell definite, I'm not terribly likely to listen to you.

Plus neither you nor raferackstraw seem to understand the financial pain that would be experienced if rates went up in two years time and I wasn't able to secure a deal as good as the five year fix I can get now.

How much further down are rates likely to go from where they are now?!

blimey for someone who likes to think they are ahead of the game you are being rather stupid, go ahead give them extra money for something you do not need at this point in time