Mortgages

[Carlos]

The best Variable/Trackers are at circa 5.1%, 5/10yr fixed 5.25% and 2/3yr fixed at 5.75%.

You could add up to 1% to those at a higher than 60% ltv.

You would have to be pretty bullish on inflation coming down soon and continuing to fall to the 2% benchmark to take a variable product.

As others have mentioned, it very much depends on your circumstances and appetite for risk. I prefer not to take risk with the cost of big expenditure but happy to be speculative with a non essential investment or toy.

I'd still take a 5yr fixed at 5.25%.

[Carlos]

For context the average mortgage pay rate for the last 25 years is 5.25%.

[jamcg]

https://www.bbc.co.uk/news/business-66256911

[Carlos]

Thats bollocks, rates have risen across the board the last 2 weeks and still today. I suspect the average has come down as lenders have reduced the number of products available at the more expensive, higher loan to value end which would result in the average coming down even though rates are rising!

[Mito Man]

Down 0.02% only to be raised next week...

[IanF]

And they’re back up again!

https://news.sky.com/story/average-mort ... l-12924709

[Matty]

So we're back to this again. My tracker didn't work out tooooo badly, think it evened off at the end so didn't really save much, but looking to fix this time around.

2 or a 5 year fix? Seems to be trending downward, but are we reastically ever going to get down to below 3% again? I mean if I fixed for 4.1% and rates dropped to 3.5%, I wouldn't be crying into my cereal, but if in 2 year we're seeing 2.5% that might be different....

[DeskJockey]

Good question. They mentioned on the news that with the drop in inflation, there might be a drop in the interest rate next month. But that's unlikely to make a big difference.

We fixed for a very long time, but that's based on our risk appetite.

[Mito Man]

Who knows. The slight drop in inflation wasn't due to healthy economic reasons. Hotels cutting prices, airlines and restaurants not increasing prices as much. Services struggling. Full blown recession may lead to rapid rate cuts at the end of the year.

[integrale_evo]

Yes, sounded more like discounting to try and encourage sales after a poor end of the year than a real downward trend in prices.

I’m not sure they’ll cut rates yet for an unexpected blip, it was up last month remember. Sounded more like the news trying not to be entirely doom and gloom than actual fact.

Of course I could be wrong!

[Nefarious]

There is strong pressure for the BoE to keep up with the Fed's rate cuts (and Trump will be pushing hard for more aggressive rate cuts). The positive inflation numbers will be the excuse for BoE to cut without appearing to be politically motivated (i.e. keeping a lid on government borrowing costs). Exactly when is unclear, but it's in the post.

I've got a couple coming up and i'll be betting on flexis

[Holley]

HSBC and TSB are increasing rates tomorrow. Barclays are withdrawing some of their exclusive deals.

Not necessarily indicative of what everyone will do, but I would probably save a rate today as you can always change it later on should it reduce before completion.

[IanF]

That’s useful thanks Holley.. also, what happened to your sister’s podcast? Seems to have stopped?

[Holley]

That’s useful thanks Holley.. also, what happened to your sister’s podcast? Seems to have stopped?

I haven't spoken with Kate since before Xmas, so not sure what she's doing. We're an odd family, can go a year without so much as a text message.

[Matty]

Thanks Holley - might fix it tonight just in case as I'm with Barclays!

[IanF]

That’s useful thanks Holley.. also, what happened to your sister’s podcast? Seems to have stopped?

I haven't spoken with Kate since before Xmas, so not sure what she's doing. We're an odd family, can go a year without so much as a text message.

Ah okay. Thanks

[Gavster]

Pondering what to do here. I need flexibility in case I decide to sell (although will be here for at least another 18 months), also curious where interest rates are headed.

[Matty]

The consensus, at least a few months ago, is that we'd see a slight decline, maybe another 0.5% over the next 12-18 months, but nothing major.

That being said, with all the mess in the US at the moment....who knows how things are going to pan out.

[240PP]

Depends, are you looking to sell and buy elsewhere or sell and rent (come off the ladder) for a period.

I’m guessing your discounted term is up soon?

[Holley]

Pondering what to do here. I need flexibility in case I decide to sell (although will be here for at least another 18 months), also curious where interest rates are headed.

Some lenders don't have an ERC if changing to a tracker mortgage. Also if buying on, you can port the mortgage and avoid any ERC (unless downsizing).

Who are you with and when does your rate end?