First Time Buyer Mortgage, Tracker or Fixed?
Sunday, February 21st, 2010 at
5:05 pm
I have two options a 5 year fixed rate mortgage at 5.99% with no fee or a 2 year variable rate mortgage currently at 4.69% with no fee. At the minute I would be saving £60 a month by going for the variable rate mortgage but there is always the risk this rate could rise. Any advice?
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Tagged with: First Time Buyer Mortgage • Fixed Rate Mortgage • Year Fixed Rate Mortgage
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Well If you have money problem and u want loan. some days before my friend having very bad financial crises so while he was searching on Internet for Bad credit loan he found a site which contain link for Geniune lender for Bad credit Loan. He checked all 8 links in that each link offer different interest rate and repayment time.
My Friend got loan of 25000$ for 15 years on 3% interest rate which should be payed annually.
Well you go to
then go to Personal loan or Bad credit loan according to ur credit score
Check all 8 links in that in search of lowest interest rates.
Take Care
Bye!
You are seeing the lowest rates in years at present. Now, the question is rather simple – do you think rates are going to go down ie are things going to get much worse resulting in rates being lowered by the government? My guess, with about 25 years of watching rates, the answer is a firm no. I would lock in my rate for the longest period possible. I would pay the 60 per month for piece of mind. I wish you luck.
I’d go for the fixed rate for two reasons.
1: You know exactly how much you pay each month
2: The markets so bad you just never know what the interest rates are doing.
You will very likely pay a lot more for the fixed rate, but you still have some security and peace of mind that it won’t change. I think you need that more being a first time buyer, it’s all quite complicated
A fixed rate mortgage with no prepayment penalties is the absolute best way to go.
Hi it depends on how much risk you are prepared to take.A tracker mortgage would make sense in the current economic climate as it tracks the base rate.Which is now at historically low levels.But remember what comes down must also go up.There are other options available such as capped rate deals for example if rates drop even further then that is what you pay,and if they rise they do not go beyond the Cap/higher rate.They are very similar to fixed rate deals apart from the fact that if rates fall,so does the cost of your mortgage. Offset mortgages are good if you have a large deposit,you forfeit your right to earn interest in the normal way, but instead you do not pay interest on the amount of deposit you put down on your mortgage.For example if your mortgage was for £170,000 and you put down £50,000 you would only pay interest on £120,000 and that is what your mortgage would be. Over the length of the mortgage this would save a lot of money in interest.Particularly as rates are so poor now for savers,it makes sense to offset.Shop around,seek independent financial advice.All the best.
This is a tricky one because at the end of the day it has to be your decision, you are paying the mortgage, not random on te Internet (inc me).
When I did mine 2 years ago, my mate was telling me to go 1 product and saying it was the best etc, I didn’t listen to him and luckly I have been better off.