deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by John
You'll regret fixing at 5% for 5 years.
Surely depends on what interest rates do in the next 5 years and whether the LTV is right to benefit from potentially lower rates after 2 year fixed?
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Aleex
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Registered: 21st Jul 09
Location: Plymouth
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I looked into the sceme and decided against it. keep saving til you have a healthy deposit
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Ben G
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Registered: 12th Jan 07
Location: Essex
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I regretted fixing at around 6% for 3 years. It was either 5.65% or 6.05%.
Mortgage was £943 then when the rate dropped to 3.99% it went down to £715.
Makes a huge difference.
[Edited on 10-10-2013 by Ben G]
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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So if we're at 92% LTV currently it would definitely be worth finding that extra 2% as a minimum.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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More than likely. Mine was a 90% mortgage and at the time (march 2010) it was the best rate we could get. Bit gutting to think how much we've paid in interest alone, but needs must and the hard times come.good in the end.
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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Ben your morgage repayments must be horrifiv
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by Ben G[/
Mortgage was £943 then when the rate dropped to 3.99% it went down to £715.
Not really horrific, just south tax.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Will be interesting to see what interest rates do in 6 - 9 months as this is when I'll hopefully be buying. Fixing at a certain rate for 5 years could be a good idea.
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John
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Registered: 30th Jun 03
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6-9 months 
It's good to be prepared deano but I thought you were going out to get it tomorrow from the way you've been.
It's expensive to get out of a fixed rate. What if you move within the 5 years? You'll maybe be able to take that mortgage and rate, but you'll also maybe have to pay thousands to get out of it.
I'd only fix for 5 years if it was something like .5%, not 5%.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Well, tomorrow if I fancy 95% LTV on a smaller property!
But you guys have put me off so aiming for 10% deposit.
Still learning though (hence reason for starting thread) and so good to know it is difficult to get out of fixed if moving etc.
[Edited on 11-10-2013 by deano87]
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John
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Registered: 30th Jun 03
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You can wait forever, at some point you have to draw a line and go for it, you could save more forever.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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True. Wait too long and the price could rise too much. They've definitely risen in my area as we've been priced out the market for the time being.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Well apparently if we do it now that's 95% LTV which is warned against 
Can't win 
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John
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Registered: 30th Jun 03
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At 5 or 6% it probably is worth waiting a bit.
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