Is now a good time to take out a fixed interest rate mortgage ??

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Is now a good time to take out a fixed interest rate mortgage??


-German growth tops four-year high in Q1
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This is always a contentions issue - it depends on you reasons for fixing:
a) You want to try save money by fixing
b) you want the security of having known regular repayments
If your reason is for b) fire away. If your reason is for b) I have a personal, odd view on this!
It is my contention, that I have never met anyone who has saved money by fixing! I have been involved in the financial sector for many years. I have never seen anyone save money by fixing
 
Munsterdude said:
This is always a contentions issue - it depends on you reasons for fixing:
a) You want to try save money by fixing
b) you want the security of having known regular repayments

Thats the regular line of bank ...............security at a price ..... so FTB fall into this trap

.......

If your reason is for b) fire away. If your reason is for b) I have a personal, odd view on this!
It is my contention, that I have never met anyone who has saved money by fixing! I have been involved in the financial sector for many years. I have never seen anyone save money by fixing
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but is that because people " trust the banks " to advice them when to fix .......
or wait untill its too late.


..........
 
Only fix if you need the predictability/peace of mind of fixed repayments (e.g. your cashflow is tight and can't deal with fluctuations in variable rates). And then only fix for a few years at most. Never fix in an attempt to time the markets, second guess the institutions and bank on saving interest costs. It is a mug's game. If you are not stuck for cash and can put up with fluctuating repayments then stick with the most competitive/low margin tracker rate available to you.
 
I genuinly think that the whole fixed/variable decision is a bit of a red herring to be honest. People spend lots of time agonising over this decision, whilst failing to notice the rate of interest the banks charge in the first place......!
 
ClubMan said:
Only fix if you need the predictability/peace of mind of fixed repayments (e.g. your cashflow is tight and can't deal with fluctuations in variable rates).

ok lets look at this one ......

hmm I need predictability/peace so I pay an extra 100 a month when there is a good indication in the market that interest rate are going down...

no I really hate that line I was a FTB once and got the same line from the banks next few month interest rates come down since then I am paying extra for this security all the while the ecomnic data suggested that this was a bad move.


tell me why is this the reason that most people fix ................
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Unregistered said:
ClubMan said:
Only fix if you need the predictability/peace of mind of fixed repayments (e.g. your cashflow is tight and can't deal with fluctuations in variable rates).

ok lets look at this one ......

hmm I need predictability/peace so I pay an extra 100 a month when there is a good indication in the market that interest rate are going down...

no I really hate that line I was a FTB once and got the same line from the banks next few month interest rates come down since then I am paying extra for this security all the while the ecomnic data suggested that this was a bad move.
Click to expand...

I don't understand your post. Are you agreeing or disagreeing with me?

tell me why is this the reason that most people fix ................
Click to expand...

What reason?
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All I am saying is that banks and brokers are eager to sell you a fixed rate when it suits them ....

Security is good but at what price. A lot of FTB take on a fix rate vs SV based on the fact that it gives them "peace of mind"-

Its no harm to analysis the market - be aware of it so that your are not sold something ........... because it gives peace of mind for a few years ... esp in a netural
or falling maket......


I would be interest to see why people take fixed vs var but that a different topic
 
For what it's worth I don't disagree with anything that you've said above and don't think that it contradicts anything that I've said on the matter.
 
ECB again today expressed concern about the rapid rate of residental property price increases in parts of Yoyoland.

Some countries are falling, some are stagnating and others have gotten a bit out of control.

What a mess !!

[broken link removed]
 
Yes now is a good time to fix rates.

Psychology of this is people will fix after the variable rates start to move up.
Which is what happened in the last time this happened.
Ask your parents
 
WizardDr said:
Yes now is a good time to fix rates.
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As far as I know fixed rates have fallen since this was posted. For example First Active have just reduced theirs (again?). Once again this shows that there is no point in fixing in an attempt to second guess the market and institutions, time the market and save money. Only fix if you need the reassurance/predictability that fixed repayments bring and/or might struggle if variable/tracker rates increased by a few percent. Otherwise stick with a competitive tracker/variable rate.
 
Can someone clarify for me - am I correct in saying if I changed from my current tracker to a say, 5 year fixed, would that prevent me putting in lump sums or increasing the monthly repayment to shorten the life as I can with the tracker?

thanks
 
Most likely yes. Fixed rate mortgages normally apply penalties for early encashment, lump sum or regular capital repayments/overpayments etc. Check the terms & conditions of the specific package in question in advance of signing up to make sure that you apprise yourself of the details.
 
So when people say that "now is a good time to fix rates" they are only targeting people that have no intention of increasing repayments or lodging lump sums?

Should this advice then be coupled with the warning that this would be a problem and it only suits people that want to go steady all the way?
 
Another thing to think about is that the French and particularly German ecomomies are in such a mess right now that I feel it is unlikely that ECB rates will rise in the short term. But I mean you can ask a thousand people and could get a thousand different answers. I guess it also depends on the size of your mortgage.

I'm buying an apt for around the 250 mark so maybe the smart thing is to fix but when you see a saving right there in front of you....Also rates might only change in a years time and it might still save you cash on a 2 year variable, dunno nowt about trackers.
 
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