any financial advisors here

[blue matt]

Ive got 2 mortgage fixed rate offers at 4.25%

both the same interest rates, one is 5 years and one is 7 year

not sure what one to go for, I like the idea of 7 years, we will know where we stand for 7 years, but is 4.25% too high

[bluesp]

Re: any financial advisors here

Better speaking to an independent mortgage advisor maybe

[TWGL1]

Re: any financial advisors here

Ive got 2 mortgage fixed rate offers at 4.25%

both the same interest rates, one is 5 years and one is 7 year

not sure what one to go for, I like the idea of 7 years, we will know where we stand for 7 years, but is 4.25% too high

The long term forecast is for the base rate to stabilise at around 4%. At the moment the longer term deals are indicative of these projections.

The days of extremely low Bank of England base rates are now a distant memory.

With any fixed term remember you can utilise the 10% overpayment which could dramatically reduce the total interest payable.

A financial advisor would be able to determine the best rate.

[Optimistic Nick]

Re: any financial advisors here

Ive got 2 mortgage fixed rate offers at 4.25%

both the same interest rates, one is 5 years and one is 7 year

not sure what one to go for, I like the idea of 7 years, we will know where we stand for 7 years, but is 4.25% too high

Are they otherwise identical? Do they allow the same amount of overpayment? Are the penalties for early repayment the same when comparing year by year? Any fees? Are they both repayment? Is either an offset mortgage?

I'm not a financial advisor, and to be honest I'd not ask a financial advisor to decide if a 5 or 7 year fix was best for me. I know what id go for, because when I remortgage I'll have 15 years to go. Personally I'd go for the 7 year fix if I knew I could comfortably afford it, because then I'd know that when it expires id be remortgaging for 8 and not 10 years (unless I overpay) and so id be reducing my sensitivity to future rate rises. But that's just because I'm very risk averse- my current mortgage is a 10 year fix. I wouldnt trust myself to predict it rates will be lower in 5 years and to be honest I wouldn't trust anyone who thinks they can predict that either.

[Jimmy the Jock]

Re: any financial advisors here

Are they otherwise identical? Do they allow the same amount of overpayment? Are the penalties for early repayment the same when comparing year by year? Any fees? Are they both repayment? Is either an offset mortgage?

I'm not a financial advisor, and to be honest I'd not ask a financial advisor to decide if a 5 or 7 year fix was best for me. I know what id go for, because when I remortgage I'll have 15 years to go. Personally I'd go for the 7 year fix if I knew I could comfortably afford it, because then I'd know that when it expires id be remortgaging for 8 and not 10 years (unless I overpay) and so id be reducing my sensitivity to future rate rises. But that's just because I'm very risk averse- my current mortgage is a 10 year fix. I wouldnt trust myself to predict it rates will be lower in 5 years and to be honest I wouldn't trust anyone who thinks they can predict that either.

Is that better than 4.25% ?

[blue matt]

Re: any financial advisors here

Better speaking to an independent mortgage advisor maybe

I have and ive got a choice of the 2, he couldnt tell me which he would go for, when I asked him what he would go, he replied, im mortgage free

The long term forecast is for the base rate to stabilise at around 4%. At the moment the longer term deals are indicative of these projections.

The days of extremely low Bank of England base rates are now a distant memory.

With any fixed term remember you can utilise the 10% overpayment which could dramatically reduce the total interest payable.

A financial advisor would be able to determine the best rate.

yea at the 4.25% its going to be within 1% of any lower rate I guess, so maybe the 7yr is the one to go for

Are they otherwise identical? Do they allow the same amount of overpayment? Are the penalties for early repayment the same when comparing year by year? Any fees? Are they both repayment? Is either an offset mortgage?

I'm not a financial advisor, and to be honest I'd not ask a financial advisor to decide if a 5 or 7 year fix was best for me. I know what id go for, because when I remortgage I'll have 15 years to go. Personally I'd go for the 7 year fix if I knew I could comfortably afford it, because then I'd know that when it expires id be remortgaging for 8 and not 10 years (unless I overpay) and so id be reducing my sensitivity to future rate rises. But that's just because I'm very risk averse- my current mortgage is a 10 year fix. I wouldnt trust myself to predict it rates will be lower in 5 years and to be honest I wouldn't trust anyone who thinks they can predict that either.

yes, both identical, no fee's, both 10% overpayment, both 4.25%

I have accepted the 7 year, but have 3 weeks ( when the old fixed ends ) to change if I want the 5 yr, when the 7 yr is up, with our planned overpayment we should be under 5 years left

I like as little risk as I can get

thanks all

[GL1Blue]

Re: any financial advisors here

4.25% seems about right without paying any fees.

I've had a bad experience with two 'independent' mortgage advisors. One telling me I wouldn't get a mortgage, did it myself direct with the lender and had no problems at all.

The second showed me a number of deals from about four providers stating they were the best deals around. I showed him a handful of cheaper deals and asked why he hadn't found them, he replied "I'm independent but only work with these providers". Independent my arse.

My advice is to always shop around yourself and see what you can get, then speak to the advisor and see what they can get.

[goats]

Re: any financial advisors here

I’d take 4% too Matt, if you look historically that’s about right for interest rates. In saying that, with this mob in control anything could happen….at least you know where your are with a long fixed deal….��

[Grangenders]

Re: any financial advisors here

4.25% is a pretty good rate in the current climate. The days of rates much lower than that are gone for quite some time, probably a lifetime. The debate over 5 v 7 yr is an impossible one to answer as it so far away. The only thing to consider to whether you might move house as if you are on a fixed deal you’ll be pretty much restricted to your current lender (or pay big fees to leave).

You did well to sign up yesterday - cost of borrowing (swap rates) has jumped this morning so expect mortgage deals to be withdrawn / increased in the next week or so, unless the increase is reversed. Investors are leaving the Uk in droves at the moment, so it’s a rocky period.

[AfricanBluebird]

Re: any financial advisors here

I have a financial advisor, who happens to be a city fan, and I get some great advice from him.

I am currently buying a place and he's been excellent.

Drop me a Dm and I can pass on the details.

[Michael Morris]

Re: any financial advisors here

I got a fixed deal two years ago for 4.84% and it was a good deal then. Just before rates went up. They obviously went down a bit after that.

My deal ends on April 30th. I’m hoping to pay off my mortgage balance then and be mortgage free. The thought of not having that responsibility anymore is a great carrot to aim for.

[Tuerto]

Re: any financial advisors here

I got a fixed deal two years ago for 4.84% and it was a good deal then. Just before rates went up. They obviously went down a bit after that.

My deal ends on April 30th. I’m hoping to pay off my mortgage balance then and be mortgage free. The thought of not having that responsibility anymore is a great carrot to aim for.

Good on you mike (mortgage free) although how would you go about aiming for a carrot?

[Heathblue]

Re: any financial advisors here

I got a fixed deal two years ago for 4.84% and it was a good deal then. Just before rates went up. They obviously went down a bit after that.

My deal ends on April 30th. I’m hoping to pay off my mortgage balance then and be mortgage free. The thought of not having that responsibility anymore is a great carrot to aim for.

Ive been mortgage free for a few yew now, trust me you just spend the mortgage money on shit you dont need

[Joe Gillis]

Re: any financial advisors here

Ive been mortgage free for a few yew now, trust me you just spend the mortgage money on shit you dont need

My Mrs now thinks it's just free money, I'm no better off

[Optimistic Nick]

Re: any financial advisors here

Is that better than 4.25% ?

In hindsight yes. Significantly. But I didn't know what interest rates would do when I took it out. What j did know what that provided me or the wife was in work, we'd have a roof over our heads for the next 10 years.