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mortgage rate question


charlie clown

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I emerge from a fxied rate deal in the next few weeks and my building society are asking me what I want to do next. They have numerous offers I can go for, all tieing me into a fixed rate for 2, 3 or 5 years. Question - should I tie in to a reasonably low rate or should I take a chance an go for the standard borrowing rate which may raise or fall? Anyone know what the generally expected trend for base interest rates is likely to be over the next year or two?

 

BTW - I'm not looking to swap B.Soc. cause of all the ones I've ever used, the current one has by far the best customer service I've come across.

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I emerge from a fxied rate deal in the next few weeks and my building society are asking me what I want to do next. They have numerous offers I can go for, all tieing me into a fixed rate for 2, 3 or 5 years. Question - should I tie in to a reasonably low rate or should I take a chance an go for the standard borrowing rate which may raise or fall? Anyone know what the generally expected trend for base interest rates is likely to be over the next year or two?

 

BTW - I'm not looking to swap B.Soc. cause of all the ones I've ever used, the current one has by far the best customer service I've come across.

 

Out of interest, which society are we talking about?

 

It's a tough call at the moment. Fixed rates have been coming down lately, especially if your loan is <75% of the house value. I believe the current guesstimate is that bank rates are likely to ease slightly over the next year or two - half a percent or so. Whether the translates to lower mortgages or not depends on whether this credit crunch sorts itself out.

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Im in exactly the same boat, mine ends in August with the added complication that my wife has lost her job. The Alliance and Leicester offered us a 5 year fixed term deal at 5.6% which I didnt think was too bad. I dont think we have any choice but to accept it as we wont get another one anywhere else with only one of us in a job.

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Aye, it's a tough decision, the better rates on offer tend to come with an up front fee which probably evens out over the course of the repayments, so I'm not over-worried about chasing the best possible rate. The thing for me is getting a deal, and I'd prefer a fixed rate deal, that is not too far (i.e. within about 1 and a quarter percent) of the projected base rate.

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