FIXED RATE MORTGAGE

[melody2002]

My mortgage is up for renewal (as my previously fixed tie-in period is up in November). I have searched through internet for best deal and have found one fixed for 10 years @ 5.69% which seems good deal at present and costs �900 to switch. It is fully portable but have heard somewhere (don't know if T.V/Radio/Paper) that if we join Europe, their interest rate is a lot lower and the mortgage provider will not allow a reduction due to this. Does anyone have any secret financial info. as to interest rate rises in the future and/or joining europe. If any MP's use this site - PLEASE LET US ALL KNOW.!!!!!

[FTVS]

Yes it is certainly true that mortgages are cheaper in Europe and yes if we go into Europe it is entirley possible they would be cheaper here. If you are genuinley concerned enter into a shorter fixed. Plus I am sure you could break the agreement but of course you would have to pay a penalty. Personally I would not go for a 10 year fixed but that is me. Why not talk to a mortgage advisor (in fact talk to several) you may get a better deal. Also have a look on www.moneysavingexpert.com for all sorts of helpful hints.

[BenDToy]

Why does anyone think that our interest rates will go down to the rates in Europe? Who thinks our cigarette, alcohol and fuel prices will do the same? Or our groceries? Or our cars? Get real - these things never, ever happen.

[melody2002]

Thanx everyone for your replies. Because it's costing �900 fee's (although 10 years is a long time) the 5 year fixed cost's the same �900, and if in year 7 I decide it's not for me, I will lose 2.5k which I think is worth the risk as I beleive (although I no NOTHING about finances!) that I/R's will continue to creep a few percent in the next year. It is a gamble either/or, but the stability of fixing for ten years suits our household as we are just about to embark on starting a family so we will know where we stand almost until 'it' starts secondary school! It was reassuring to know that we are 'possibily at least' five years away (thanx anstyevg) and then it will - I assume - be battled out in Parliament thus, taking a few more years. Thanx again everyone. I will check on that website FTVS before committing myself fully! (I took out a fixed rate two years ago which is about to end, and this is �50 LESS a month than the one I'm taking out today so I wish I'd have fixed the two year one for ten now but hey, noone really know's what's around the corner do they??!!!!!)

[apricot]

ALL advice from the reputable newspapers in NOT to take a fixed rate mortgage. Have you considered a current account mortgage. I have one which is so flexible and cheap it's unbelievable. Try Natwestone

[melody2002]

Thanx Apricot - I went onto Natwestone and used their repayment calculator based on 64k mortgage on �155k house over 20 yrs, with only �20.00 a month savings (we are about to start a family so money will be tight!) and it came out that I would be paying �100.00 more on this mortgage per month now, than the fixed one with Britannia - but thanx for your time anyway - anything is worth a try to save money :-

[sarah.t]

Hello melody. We moved house in May and decided on a 5 year fixed mortgage due to similar circumstances - thinking of starting a family at some point in the next few years and as we were stretching finances to buy the new house were worried about being caught out if interest rates went up significantly. I think our rate is more like 5% though, and at the time it wasn't a lot more than some variable rates around so on balance it was the best for us. We also had the conversation with our advisor about joining Europe, as we were told that would bring rates down, but we thought it highly unlikely this would happen within the next 5 years. Not sure I would have committed to a 10 year fixed to be honest, that sounds just a little too far into the future!