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[Lazydocker]

I have refused the wooing of my bank for the last 12 months to enter a fixed deal of around 0.1% higher than my current SVR

My personal opinion, and nothing more than that, is that interest rates will remain low for the next 3-5 years. The 0.5% base rate is unlikely to change in the next 12 months and then the increase will be very, very slow

Just my 2p

[Gaffers]

True, but I bet your SVR is lower than what he is paying right now. 

Rates are going to stay the same for 3-5 years so I would look at what your rate is likely to be at the end of your fixed term.  If ludicrous then look elsewhere.  Also if you are looking at moving in 3 or 5 years then that could influence your decision.

Personally if the SVR you go on to after your fixed rate is palatable I would shoot for the 5 year.  The reason being is that if rates go up in 3.5-4 years then you could pay significantly more for those 2 years (between the 3 and 5 year options) if they don't you have not paid that much more.  Even then I bet the 5 year fixed rate at the moment (with interest rates at 0.5%) is much less than the current SVR for the proposed loan.

[chrisgixer]

I'm currently paying 4.49%......SVR.

I've been offered two fixed rates.

3.59% for 3 years .........or 3.75% for five years. The difference is about £11 per month.

Which package would you choose?

Where will interest rates be in three or five years?

I originally thought that the 3 year fixed rate was best, but now I'm not so sure.

My crystal ball is cloudy and unclear.

We have just agree a mortgage at 2.99% FIXED for 5 years. Up to 70% loan to value.

But we have put it on hold as we expect cheaper products "may" come out given recent announcements. We have a few months on our current rate.
But generally, as mortgage rates are cheapest they've been for 14(?) years, I'd look to fix as long as possible. But not at the figures you quoted, they're doing you no favours there.

Given mine and your figures, I'd be looking around. As said before, by me and others, SPEAK TO AN IFA!

[05omegav6]

Is it possible to fix for 15 years? And at what cost

[chrisgixer]

Is it possible to fix for 15 years? And at what cost

The lender would load the term higher, given current situation. But that's the gamble we're all taking.

IMO the the Governors comments are a little ambiguous, as unemployment figures are so easy to manipulate.

[chrisgixer]

From Optis point of view, he should be able to get a longer term at that rate. Or a cheaper rate for the same term. If you see what I mean.

[05omegav6]

That all makes sense

Bit of a mind fudge trying to get my head around the whole system/process

[Lazydocker]

If 2.99 is currently deemed a good fix then I'm willing to stay on my 3.49 SVR with the ability to vary payments.

That said, I also don't have much choice at present as my business hasn't been trading long enough to be paying me a sensible wage

[05omegav6]

Who would be self employed

[omega3000]

Er...not exactly, Mr Rods.

When I think of my financial position words like destitute....impoverished and piss poor spring to mind.

Informed piece as usual.

Lincolnshire is where all the rich folk live   

[05omegav6]

Think you might be confusing Lincoln with Lundun

[chrisgixer]

If 2.99 is currently deemed a good fix then I'm willing to stay on my 3.49 SVR with the ability to vary payments.

That said, I also don't have much choice at present as my business hasn't been trading long enough to be paying me a sensible wage

With the rate we have, an over payment of 10% is possible, it depends on the mortgage you have, not what "bloke says down the pub" which  seems to be an issue on here these days.


To all...
Seek advice, specific to YOUR POSITION, not someone else's.

[Lazydocker]

If 2.99 is currently deemed a good fix then I'm willing to stay on my 3.49 SVR with the ability to vary payments.

That said, I also don't have much choice at present as my business hasn't been trading long enough to be paying me a sensible wage

With the rate we have, an over payment of 10% is possible, it depends on the mortgage you have, not what "bloke says down the pub" which  seems to be an issue on here these days.


To all...
Seek advice, specific to YOUR POSITION, not someone else's.

Absolutely and, as I said, part of my decision is also because of my employment status

Knowing you and Mrs Gixer as well as I do I know full well that your decision is a well informed one

[Rods2]

I have just been reading in one of the financial newsletter that I receive. Since the BOE forward guidance of at least 3 years before interest rates rise, Interbank rates that mortgage interest rates are based on have been rising from 0.68% to 0.79% for 2 year swaps and 1.37% to 1.66% for 5 year swaps which suggest that the markets think interest rates will increase faster than the forward guidance suggest with at least 1 increase priced into these rates.

So it would be better to sort that fixed mortgage sooner rather than later as the Interbank rises will affect the rates of mortgages on offer.

Mr Opti, don't get caught, so you have to make some difficult financial decisions like cutting down the household staff from your butler, cook, gardener and chambermaid, having to use of your executive jet less often or even mothballing your 200m super-yacht to save the odd £1m here or there. 

[Sir Tigger KC]

I don't think the mortgage is on Opti Towers Rods, rumour has it that there is a Dove cote in the grounds which was mortgaged to gain tax relief back in the day!