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Author Mortgage - Which Way to Go??
bishbosh
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Registered: 25th Sep 06
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4th Sep 07 at 13:57   View User's Profile U2U Member Reply With Quote

Is it still a good idea to go for a fixed mortgege?

I hear bits and bobs about a possible drop in rates, but not enough to decide.

Dave
--DAN--
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Registered: 3rd Feb 03
Location: Bottesford. Drives;3 Series
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4th Sep 07 at 14:15   View User's Profile U2U Member Reply With Quote

Personally, at this moment in time i'd go for a two year fixed, at least for a little while you know exactly what your paying and can sus out which way interest is going, and if at the end of the two years it has dropped, you can switch over to the variable rate.
bishbosh
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Registered: 25th Sep 06
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4th Sep 07 at 14:46   View User's Profile U2U Member Reply With Quote

Yeah that sounds like a good idea.. I think with the way im streaching my funds to buy a fixed id a must. 2 years would give me time sus the market..
bishbosh
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Registered: 25th Sep 06
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4th Sep 07 at 14:47   View User's Profile U2U Member Reply With Quote

Is anyone worried about house prices dropping when buying at susch high figures. im buying for 120k and its scary!!
Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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4th Sep 07 at 14:57   View User's Profile U2U Member Reply With Quote

house prices dropping

It won't happen. They plateau sometimes, but always increase. Over the past god knows how long house prices have, on average, doubled every 10 years.
IvIarkgraham
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Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
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4th Sep 07 at 15:53   View Garage View User's Profile U2U Member Reply With Quote

im on 2 year fixed rate
Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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4th Sep 07 at 15:55   View User's Profile U2U Member Reply With Quote

yeah, as Dean said they havent much chance of dropping due to normal market fluctuations.

Only way values will drop is something happening in that particular area, and if thats the case you've not one your homework before buying or its a new thing after purchasing.
scoob
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Registered: 16th Oct 03
Location: Beverley, E Riding of Yorkshire
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4th Sep 07 at 17:12   View Garage View User's Profile U2U Member Reply With Quote

im on a 2 year fixed will look eles were when its up
Russ
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Registered: 14th Mar 04
Location: Armchair
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4th Sep 07 at 20:04   View User's Profile U2U Member Reply With Quote

house prices dropping

the problem with the house prices is, people keep buying the houses, as people need houses, there will always be people, they will always need houses
Ian
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Registered: 28th Aug 99
Location: Liverpool
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5th Sep 07 at 00:04   View Garage View User's Profile U2U Member Reply With Quote

If you're close to what you can afford then a fixed rate guarantees that your monthly outgoings aren't going to go up and jeopardise your house.

It also protects you against rate increases, which still could happen.

Having said that, because the market is in panic mode where rates are concerned, the deals on fixed products are absolutely crap.

Safe and reassuring, but you'll pay for that peace of mind.

If you don't care about safety - like me - get a BoE tracker. Great deals at the moment because no one is buying them and if inflation stabilises they might get cheaper. Plus you don't have to remortgage every two years and spend hundreds of pounds in fees doing so.

Ultimately you need to make a decision based on what your priorities are. If in doubt play it safe and look happy. Even if you tie-in to something higher than the prevailing rate, at least you know what your outgoings are.


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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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5th Sep 07 at 10:41   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by IvIarkgraham
im on 2 year fixed rate


I'm on 4.
corsa.in.boro
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Registered: 30th Aug 02
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5th Sep 07 at 18:12   View User's Profile U2U Member Reply With Quote

Good points Ian, how often does the BoE base rate change?
Ian
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Registered: 28th Aug 99
Location: Liverpool
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6th Sep 07 at 00:27   View Garage View User's Profile U2U Member Reply With Quote

They meet monthy and change it when they feel it needs doing.

Minutes are here - http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2007/index.htm

You can see how the votes are cast for rate changes on the last page which normally indicates what is going to happen the following month.

August they all voted to stay at 5.75%.


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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
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6th Sep 07 at 07:18   View User's Profile U2U Member Reply With Quote

Today they could go up once more.
Ian
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Registered: 28th Aug 99
Location: Liverpool
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7th Sep 07 at 18:11   View Garage View User's Profile U2U Member Reply With Quote

http://www.bankofengland.co.uk/publications/news/2007/088.htm




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Russ
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Registered: 14th Mar 04
Location: Armchair
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7th Sep 07 at 20:08   View User's Profile U2U Member Reply With Quote

mines fixed at 5.25.. until 2017

 
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