Mortgage

[bingobob]

My warchest is all in myco - no sense in paying tax if I don't need to so didn't go with an offset.

Hedged. Took my current mortgage over at 0.63 above base for half and 3.99 fixed for 3 years for the additional. At the end of the three years hopefully I'll have made a decent dent in it anyway.

Bear in mind that you will probably have less equity in the property in 3 years time and therefore any re-negotiation onto a new rate may prove difficult. A 3 year fixed at the rate you quote is really just playing into the banks hands imo. The banks know rates are going no-where in the next couple of years and they get to hit you hard when you come off the deal in 3 years time). This is why banks are pushing fixed rate mortgages so much at the moment, it really isn't for the benefit of their customers

[shaunbhoy]

take the 4% for five years and forget about it and move on


with what is reckoned to be coming I wouldn't like to have 2% above base rate during the coming years

Milan.

Reckoned by whom exactly benesy?
You been on AtW's Blog again?

[Dearnla]

Do I take 3.99 fixed for 5 years or 2.0% above base variable?

<Smartass mode on/ What's a Mortgage? paid mine off 3 years ago. Yippee.../Smartass mode off>

[DimPrawn]

Bear in mind that you will probably have less equity in the property in 3 years time and therefore any re-negotiation onto a new rate may prove difficult. A 3 year fixed at the rate you quote is really just playing into the banks hands imo. The banks know rates are going no-where in the next couple of years and they get to hit you hard when you come off the deal in 3 years time). This is why banks are pushing fixed rate mortgages so much at the moment, it really isn't for the benefit of their customers

Exactly. If you think the mortgage lenders don't know what coming (interest rates wise) you are deluding yourself.

Take the lowest cost option now (not some complex deal with terrible tie ins). With the money you save now, pay down the capital or buy gold (Buy Gold Bullion TODAY &#9655 Buy Gold Online at LIVE Gold Prices - BullionVault.com is my preferred route).

Interest rates aren't going up, and if they do, it will be a token 0.25% hike to show "BoE clamps down on 200% inflation rate".

[Freamon]

Interest rates aren't going up until businesses go back into expansion mode.

The BoE has no influence over this, and no idea when it might happen. But when it does, they will have to raise their rate (they have to follow the market).

[AtW]

Interest rates aren't going up until businesses go back into expansion mode.

What's that supposed to mean?

[milanbenes]

Reckoned by whom exactly benesy?
You been on AtW's Blog again?

less of it you cheeky cant

Milan.

[EternalOptimist]

Exactly. If you think the mortgage lenders don't know what coming (interest rates wise) you are deluding yourself.

Take the lowest cost option now (not some complex deal with terrible tie ins). With the money you save now, pay down the capital or buy gold (Buy Gold Bullion TODAY ▷ Buy Gold Online at LIVE Gold Prices - BullionVault.com is my preferred route).

Interest rates aren't going up, and if they do, it will be a token 0.25% hike to show "BoE clamps down on 200% inflation rate".

this gold that you buy, what do you do , keep it under the bed or something ?

[TykeMerc]

<Smartass mode on/ What's a Mortgage? paid mine off 3 years ago. Yippee.../Smartass mode off>

In my case it's essentially an easy access to instant cash tool, got an offset with a positive credit balance and when I needed access to £15k last week I just pulled it straight out of the account.

[DimPrawn]

this gold that you buy, what do you do , keep it under the bed or something ?

I've used it to block pave the front drive. Looks nice in the early morning sun.