We’ve got about five years left on the mortgage and the fixed rate runs put shortly. There is an option to fix for five years at 2.7% with a £599 fee. I think thats as good as it gets at the moment, does anyone who knows about the mortgage world disagree?

Personally I would go for it as long as you are comfortable with the payment plan. Peace of mind cannot be quantified. One less bill to worry about. Let's face it not so long ago you would have crawled over broken glass to get that sort of rate.

I'd take it,i'd feel comfortable fixing it at that rate.

That's my thoughts too. We've got away with 2.05% for the last few years but that was always going to change. Rates are going North quickly and even if they do come back down I can't see them dropping back to near zero. I agree with Mr Frank, peace of mind is worth a few quid. Either way, I don't think there's much better at the moment.

By the way, the rates are far higher if your LTV is more than 60%. Obviously as we're at the arse end of the mortgage there's no risk for the banks but over 60% they're at 4-5%.

The world and the uk in particular is going through a very turbulent time and 2.7% seems very reasonable and the £599 fee is only 100 pints at London rates.
But as with all these things it's your call.

Can only see the bank rate carrying on going up for another 4 quarters at least, which will take it above bank interest rate never mind the mortgage rate.

What’s pissing me off is I’ve just paid my mortgage off then the energy bills trebled …. So much for a bit of cash in the bank

You have answered your own question there. You will have the last 5 years of paying a mortgage with peace of mind that the repayments won't increase, & you seem to acknowledge that you have had the last few years on the cheap. If that enabled you to put some cash away, the monthly increase may not be too hard to swallow

Indeed Mr Tyne, I’ve took the 2.7%, I reckon that’ll look very cheap in a years time.

A few further thoughts about your mortgage.

Unless it's an endowment mortgage, the vast majority of your payments will be allocated to the capital outstanding, depending upon how much you owe, so the quoted interest rate is likely to be less significant than in previous fixes. Do they charge interest monthly/quarterly/yearly in advance, or on the reducing daily balance? What is the APR for the last 5 years?

The £599 fee may be more than the interest you will pay over 5 years, depending on how much is outstanding, so there could be an overall cheaper alternative on a variable interest rate

In my lifetime of paying various mortgages, the past decade has been a golden era in cheap finance, which I suspect some people have thought was the norm and would continue for ever. Even the increases mentioned are in relative terms cheap as chips, except of course when you’ve stretched your budget to it’s limit.

think i preferred the early 70,s with rising mortgage rates but realistically priced housing when you could bang in a bit of overtime to make up the extra mortgage payments. now the poor sods cannot even get a deposit to start em off.

Your wage kept going up, never struggled financially in the 70’s or 80’s.

The low interest rates has given people a false sense of security and ease of obtaining debt. When I first applied for a mortgage it was based on two and half times your earnings some places didn’t even allow your partners income to be taken into the equation.it’s around 5 times your earnings now I believe.
The low interest rates have pushed up house prices beyond belief and the builders are drip feeding house building to keep it that way. You can’t tell me that a new 4 bedroom house costs £250k to build, materials haven't gone up that much over the years.
Financial institutions can not afford interest rates to go back to the 70s levels, I am afraid there thousands end up homeless with repossessions by the them.
The 2008 crash was caused by irresponsible lending and when the financial institutions tried to sell the properties on they couldn’t even recover the original loan amount bankrupting banks here in the U.K. and the States.

[quote="Jamie1952"]The low interest rates has given people a false sense of security and ease of obtaining debt. When I first applied for a mortgage it was based on two and half times your earnings some places didn’t even allow your partners income to be taken into the equation.it’s around 5 times your earnings now I believe.

and they will still struggle even with their grandparents giving em the deposit and help in paying for iot with the bank of mum and dad. Then there is the unknown future of high interest rates and the cost of living they have never witnessed before.

35 year mortgages are coming in now for young people - just another way to sustain the high prices of property.

Bought my first house age 21 when my apprenticeship finished. Nearly everyone bought a terrace house and worked up, so by the time I was 24 I bought a house up the Fens and I wasn’t pushed financially.
The benefit of buying a terrace house first was it gave you time to work out your future plans and a lot of very nice terraced streets, because young working couples were buying them.
The rot set in when the private landlords were renting houses to basically any shit, result long term tenants lives became a misery, who could moved did and young couples went straight for the bigger house and the pressures that went with it as demand increased, prices rose and once streets in demand became hell holes.

Life Time Mortgages in the next few years as people will never be able to the mortgage off.

The rot also set in with the low interest rates, bigger new houses became more affordable,
ready to move into with everything brand new and no DIY required.
Spent many a night and week ends after work doing work on my properties over the years, in general the younger generation won’t or can’t do DIY.

The government Help to Buy Scheme, you can borrow 20% (40% in London) of the purchase price, that pushed house prices up. What some people failed to realise whilst it’s ‘free’ for 5 years, you pay interest after that. At one time financial organisations did not allow you to add it on to the mortgage after the 5 years but have relented since. The fly in the ointment is if you sell the property after the 5 years the property is revalued and the amount to pay back is based on the value. If you borrowed £30k and the property increased in value by 5% you have to pay back £31500 so it’s not a free loan.

The low interest rates were a product of the 2,000’s after the credit crash, but the original restriction of mortgages to two and a half times your salary did keep house prices in check because the limit was set and increases were to an extent slower.
The one that really boils my blood is this equity release cobblers, why do people fall for these things?

[quote="Jamie1952"][

The rot also set in with the low interest rates, bigger new houses became more affordable,
ready to move into with everything brand new and no DIY required.
Spent many a night and week ends after work doing work on my properties over the years, in general the younger generation won’t or can’t do DIY.

the rot also set in where people were took in by the new houses and strethed themselves as far as they could on something that ended up just a place to sleep in. after years of getting up at 5am and getting home after 7 at night to basically pay for bricks and mortar with a 13 day fortnight worked. DIY would be the last thing to have a go at on your one day off. saw the light and for the last 40 years have gone down the renting area where free repairs are just a phone call away.

Its seems like I might have chosen right.

Like you also said at least 10 years of Boris and a lifetime of Tories in power?

Interest rates varied massively all the times I had a mortgage, I’m amazed it’s lasted so low for so long, but before the low rates people expected a variation and allowed for it.
The long years of ultra low rates were expected to be the norm and people wanted everything now and now the birds are coming home to roost.
People who have multiple credit cards all maxed to the hilt and store cards will also be in for a surprise, not a pleasant one either.

The Tories can do fuck all about this, the EU are in the same boat and the Yanks are driving it as usual with their high interest rates to stifle their own inflation.
It’s a global phenomenon ..the only exception being North Korea, but the Pyongyang Building Society don’t do mortgages.

The yanks love credit, they over maxed in 2008 and caused the crash, people had 100% + mortgages on the pretence their property would increase in value, the market collapsed and the banks were left with loads of houses in negative equity.
Credit is too easy to get, big retailers don’t want cash, they want you take credit, is interest free credit actually free ? It’s not, the price of the goods are inflated to cover the cost of the ‘interest free’ credit.I always ask if there is discount for cash if not I go down the road of interest free credit or buy now pay later deals if no interest is added.
Price of food has gone up 10%, will it come down again, maybe marginally, my philosophy is retailers think that once you get used to budgeting for the increased prices they don’t need to reduce the prices.

it shows how people think when someone brags about diesel being 173.9 a litre when twelve months ago that was 50p less. shove things up by 10p and in a few months time reduce em by half and many fall for it.

Unfortunately a lot of people have had to pay these prices to buy a house and at least see some ofv their money back in their own pocket. They didn't create the housing market but will certainly be fucked over by it.

And were advised right.

Loony economic policy by the UK...........even the IMF are urging a U turn.

Mr I came on here genuinely asking for other people's opinion on how to respond to the fact that his mortgage was due for renewal. Having considered all of his options he chose a route which has turned out to be well pleasing to him and his wife.
Your contribution to this thread is to throw something back at him which he predicted under very different circumstances than are present today.
Can't you just be happy for him ???

Having bought five houses over my life…it would have been one if it wasn’t for the wife, the housing market has been a basket case all my life.
I finally paid my last mortgage off three years ago, but love how the energy companies have stepped in to replace that particular payment, the bastards.

My first mortgage was 7% interest and I've seen rates ranging from around 2% to over 13%.
There is a lot of volatility at the moment, from all directions.
The IMF have suggested a rethink but to what. If they want to get involved I would welcome that but with the input of suggesting which way we go. It is always easy to disagree with any decision but that begs the question " well what do you suggest".
Their biggest gripe seems to be an increase in inequality. They sit on mountains of cash and we are one of the biggest contributors to that mountain. Maybe they might like to give us some back eh?

Sitting on mountains of cash, the U.K. might have to go cap in hand to them to bail us out, suppose it’s one way of getting back what we paid into it.
Supposedly the UK THE 6th ranking economy in the world ?
Calls for Truss to sack the Chancellor already to try and boost the economy.

Taking money back off them might make them think twice before criticising a major contributor.
The MSM are getting into frenzy mode again, they'd only treat the next one the same.
You never know the old Kwasi might be right................there again.

The Bank of England has intervened causing the surge in interest rates on our borrowing to start dropping.

I am sure I read/heard on the news the BOE have now been told by the government not to raise interest rates ?

I haven't read that but wouldn't that be jeopardising the BoE's independence.

If the government thought the BOE were going to ‘jeopardise’ their recovery plan they could lose their independence, it was Gordon Brown who allowed the BOE to set interest rates independently.
When I bought my first house lending was based on two and half times your basic salary, if your partner only a small percentage was taken into consideration. Obviously with much larger mortgages and lower interest rates it must be lot more now ?
As we all know all that low interest rates has done is push house prices up.

Loan to value plays a big part now and I think it is four times the main earners salary or thereabouts.

If I remember rightly our mortgage interest was between 10 and 15% in the 70's/80's best thing we ever did was pay off the last 6 years around 2002. If you can afford it that is.

I was gonna do that, but…… with interest rates that low it just wasn’t worth the bother money wise, but if they changed, then I would have

Was that your residence in Monaco or the estate in Scotland?

Monaco.

Monaco my arse, Monarch Road up the Manor.

financial matters are something i know very little about when talking about bank rates and interest rates. know its important but an issie that turns me off. all i can never get my head round is the situation of where you get a loan from the bank the interest you pay remains the same till it gets paid off. a mortgage however goes up and down like the pants of a love island contestant so why the difference. there will be winners and losers as always.

Heres my take for what its worth:
The Banks n Government work together to make money for themselves ( Shirt n Tie Burglary).
They dont give a fcuk about me and you.

Interest rates go up.
Mortgage rate goes up to the maximum in hours.
Saving rate goes up about 4 weeks later at a fraction of the interest rate increase

Interest rates go down.
Mortgage rate goes down a fraction very slowly.
Savings rate goes down faster than Joan Collins knickers a very long time ago.
They cant lose!
The Government will have there clicky backhanders n golden handshakes nailed on.

Wasent long back the top boss of the BOE stated in this current climate i will take a pay freeze.
Then whacks the interest rate up to make thousands on his millions.

I think even Poolie1 mite believe shirt n tie burglary exists now. He seemed a bit sceptical about it months ago.

Financial stuff should be introduced as part of the school curriculum, when it comes to financials you are in the lap of the gods or a financial advisor who has 2 aims in life first one is too make money for himself the punters are secondary.
One tried to do me for over £700 commission a few years back for arranging a mortgage, ii complained and the money was refunded as he never explained he was getting commission.

Very harsh Jamie

The poor bloke might have a massive mortgage, a big car to run, a wife, six kids, four grandparents, three dogs, two cats and a budgie to look after and feed and here's you depriving him of his crust.
Heartless or what !!!!

They’re all in suits.