Mortgage rate- Should we go for it??

[SheBangsTheDrums]

This is rather dull and I'm sure it's been asked a lot lately but could anyone help stop DH and I arguing all night!?

Our fixed rate is up in Sept, I've been to the Abbey today who've offered us a rate of 6.44% (fixed 3 years) with £999 fee included within the mortgage.

However, it's £2000 less than we wanted (so as to keep within the 75% of house value) we were planning on paying off the car loan so this means we'll be a bit short.

I think we should forsake the £2k as it's not exactly a good time to be remortgaging and get the wheels in motion, however DH isn't keen, he thinks we should shop around more.

I have just got abbey 6.24 with a high fee but cheaper than taking a higher rate with less fees.

BofE rate stayed the same today - I would wait it out a little longer. There have been a couple of good rates introduced recently.

see an Independent financial advisor, agree you shoudl shop around

but fabby deals are thin on the ground, we are fixing at a similar rate for 3 years.. last time we changed mortgage, we had the pick of about 7 or 8 good deals, this time we had 2.

What is your current fixed rate? HSBC are doing a rate matcher mortgage, and as long as you qualify, you can get a rate as low as 4.54%, if that's what you're currently on. We have moved our fixed rate of 4.99% from Abbey to them, so we have it fixed at this rate for another 2 years. It cost us £899 for this.

So yes, I think you should shop around a bit more as you can probably get a better deal.

Becasue im worth it did you see an advisor about this? and were they doing it for only 2 yrs or more?

I was in the process of seeing an advisor, and then saw the HSBC ads. They will not deal with IFAs, so you have to go to them direct.

Not sure about the length of time, tbh.

our fixed rate deal is also coming up (in Nov) i really wouldn't fix it at this stage to be honest i don't think the rates are attractive enough and i think rates will stay flat at worse for a while (so the tracker rates are more attractive).
i went in to see hsbc last week and the guy told me that they are not offering good fixed rate mortgages as they already had their fill with the matcher promotion they did earlier so their deals in the fixed mortgages area are not v competitive at the moment.

I think waiting to see what the bank of england do is quite pointless atm as most banks and building societies are raising rates and increasing fees to rebuild their books.Rates are more likely to rise iver the next year than fall as the initial worst case scenario for inflation was 4% and now they are saying 5 is more likely.If you can get a good deal now I would take it for peace of mind.Mortgage rates are linked to LIBOR anyway and not the bank of england and it is rising atm

The best I've been offered is Halifax 10 year fixed or 3 year tracker at 6.59%, haven't got enough equity to get much better deals.
I'm going to go for it if I can get the eraly redemption clause taken out.

We have a fixed rate of 5.65% for 25 years and have been very glad we took it out a few years ago. It's just great to know that we will be paying the same rate until the end of the term.

Not sure if you can get such long-term any more, but worth a look if you can.

Meant to say - Cheshire are good. Excellent customer service in my experience.

Noddy - you seem like a knowledgable person on these threads - do you think a ten year fix is good? I am thinking it is if things are going to be worse on a seven year cycle iyswim? And if I get the early redemption fee clause taken out I could switch again if it got better?

I think if you are staying put that is a good deal.Many economists don't see this country stabilising until 2015 at the earliest!House prices will go down to manageable levels but I think interest rates will rise esp if the tories get in

So you'd be paying for a car for x amount of years instead of just a few...that makes no economical sense IME. Take the deal and then take out a loow rate loan or a 0% interest credit card which you pay of religiously and quickly to cover the car loan?

Thanks Noddy.