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    Anyone experienced in Mortgages? 2y or 4y fixed?

    Halifax are offering 2years fixed and 4 years fixed deals at the moment.

    2 Years is cheaper by 0.7% p/a.

    Will it be a good move to fixed for 4 or 2years?

    19 Comments

    Not a professional but my gut instinct with rates liable to rise soon would be to go for the 4 year fix . Apart from anything else it gives you peace of mind for an extra 2 years .

    It is not going to get any cheaper and the word is that there will be gradual increases in the base rate, I would opt for 4 years peace of mind.

    Original Poster

    rogparki

    Not a professional but my gut instinct with rates liable to rise soon … Not a professional but my gut instinct with rates liable to rise soon would be to go for the 4 year fix . Apart from anything else it gives you peace of mind for an extra 2 years .



    I agree, am just bit confused as would save a bit for first 2years or may be not if rate shoots up to 3% after 2years.

    Edited by: "adi0604" 21st Jul 2014

    You need to factor in the cost of the fees to get a true mortgage rate so if you were to re-mortgage in 2 years time then effectively you are paying 2 lots of fees instead of 1.

    Original Poster

    donaldduck2

    You need to factor in the cost of the fees to get a true mortgage rate so … You need to factor in the cost of the fees to get a true mortgage rate so if you were to re-mortgage in 2 years time then effectively you are paying 2 lots of fees instead of 1.



    No fees on any at present.

    4 years, rates are only ever going to go up, and very soon the way things are going.

    so what are the actual two rates?

    I cant see any 4 year fixed rate mortgages on their site

    halifax.co.uk/mor…s=0

    As above post the 2 different rates and then we can offer better advice but I suspect the general opinion will be rates are only ever going to increase so better to fix now for as long as possible.

    Original Poster

    Thanks Guys for your comments. I am going for 4y fixed.

    adi0604

    Thanks Guys for your comments. I am going for 4y fixed.


    so you ask for advice which cant be given without the proper rates (asked for twice) and ignore us

    2 year fix is better unless interest rates rise more than 2% EARLY within the 4 years (unlikely)

    Original Poster

    I asked for advice which members already indicated. No one is trying to ignore. Anyways its 3.29% 2y 3.99% 4y

    Yes rates are going to go up but only gradually. I'm guessing we will only have 0.5% increase every financial year or so depending on worldwide recovery, employment figures etc. I hope we don't get a big jump as I am looking to get a tracker @2.5% including base.

    danib

    Yes rates are going to go up but only gradually. I'm guessing we will … Yes rates are going to go up but only gradually. I'm guessing we will only have 0.5% increase every financial year or so depending on worldwide recovery, employment figures etc. I hope we don't get a big jump as I am looking to get a tracker @2.5% including base.


    exactly - so a 2 year fix would be better unless rates rise more than 0.5% EVERY year during the 4 year fix which I find highly unlikely.

    adi0604

    I asked for advice which members already indicated. No one is trying to … I asked for advice which members already indicated. No one is trying to ignore. Anyways its 3.29% 2y 3.99% 4y


    Nationwide do a 3.19% 4 year fix (£99 fee) or 2 years at 2.49%

    Original Poster

    I hope so too. Looking at the BOE rate history I would imagine it would be around 0.75 to 1% every year, depending on the growth etc.
    Even at 0.5% per year increase I would be better off with 4yrs fixed overall. As suggested above it is peace of mind at the end of the day.

    Depending on your LTV you can get life tracker deals. In my experience Banks does seems to be very rigid in valuation

    adi0604

    I hope so too. Looking at the BOE rate history I would imagine it would … I hope so too. Looking at the BOE rate history I would imagine it would be around 0.75 to 1% every year, depending on the growth etc.Even at 0.5% per year increase I would be better off with 4yrs fixed overall. As suggested above it is peace of mind at the end of the day.Depending on your LTV you can get life tracker deals. In my experience Banks does seems to be very rigid in valuation


    you would be worse off if there was a 0.5% increase each year taking a fix over 4 years of 3.99% than the 2 year fix of 3.29%

    and you'd probably still get a decent fixed rate when the two year deal ends

    Original Poster

    Have already checked with my LTV not much difference elsewhere.

    With 2y fixed. I will be paying Y3= +1%, Y4=+1.5% oppose to 0.7% saving in the Y1,Y2.

    I would and have gone for 4 year fixed as rates will be going up in my opinion.

    danib

    Yes rates are going to go up but only gradually. I'm guessing we will … Yes rates are going to go up but only gradually. I'm guessing we will only have 0.5% increase every financial year or so depending on worldwide recovery, employment figures etc. I hope we don't get a big jump as I am looking to get a tracker @2.5% including base.



    Do you have a crystal ball then ?
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