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rose_lotus

fixed mortgage

9 posts in this topic

is it a good time to take 5 years fixed interest rate for first time buyers?

Many thanks!

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That's a difficult question- wish I had taken 5 years fixed rate 4 years back- when the interest rate was 3.79. But now the interest rates r sky high- I think all banks r charging at least 6%- who knows it may come down, but if u fix it for 5 years u will be struck with that rate- safe bet would be 2 years

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well I am not so sure that I agree on this...

yes rates have climbed up compared to four years back, however overall, it seems that they are still relatively low...so there is indeed a scope to increase further...

I would say check your financial situation and if you value a bit of stability, then probaby go for the five year deal...!

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yes godzilla- it is just a hope it might fall down in 2 years. But how can anyone predict that?

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true....noone can predict...!

it is a bit of a risk taking!

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I think interest rates have peaked. The economy is starting to stutter. I anticipate interest rate cuts in the not too distant future.

Obviously no one has a crystal ball however! ;)

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I think it is not wise to have long term plans, as uncertanity is the only certain thing in the world. When it comes to mortgage 5 years means a long term. I would stick to 2 year fixed one.

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The other thing to consider is any buy out fees that might apply to a mortgage with such a long fixed period. E.g. if you have to move again during your training or if you reach consultant post, then can the mortgage be transferred to a new property, or will you have to pay (sometimes several thousand pounds) to get out of it.

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I think it is not wise to have long term plans, as uncertanity is the only certain thing in the world. When it comes to mortgage 5 years means a long term. I would stick to 2 year fixed one.

Agree with you abey on this one.. also with what chris has said.. you never know whats going to happen next.

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