mortgages any good ones around?

Question

Do you think a fixed rate mortgage for 5 years is a good one and what is the best deal at the moment

Answer 1

Yep - 5 years is a good period of time to fix (in the UK) assuming you think interest rates will continue to increase or at least won't fall dramatically.

Alliance & Leicester offer a good one. Otherwise, check out www.motleyfool.co.uk and see what they are offering.

The other advantage of fixing for 5 years is that you can avoid paying the ridiculous fees to remortgage every two years.

I'd be quick if I were you - I think rates will increase further in the next few months. If inflation returns, which it looks like it is, we may be in with a few years of rising interest rates back up to previously normal 6-7% levels.

Answer 2

Mortgages are not all alike, they depend very much on your situation. The 5 year mortgages have only a small interest rate benefit at the moment. So unless you are sure you won't be in the home in five years I would go with a standard 30 year fixed, or 15 year if you can afford it. If you have credit above 640, and you plan to stay in the house forever, The get a 30 year and buy down the interest rate 1 point. If your credit is questionable, or you can't afford your payments now, make sure to shop around and get a deal that fits you. Make sure any interest only options are fixed and last for at least 5 years, and probably 10. Explaining your situation to a couple mortgage brokers should come up with the loan for you.

Answer 3

The only way that the fixed for 5 is good is if you are certain that you will sell prior to the refi time. The way those can bite you is if you are thinking that rates will be favorable at the 5 year mark and they are not.
I've seen folks get badly burned on a short term fixed. The re market is rather fickle and what was once feeling like a safe and sure bet is a distant memory. If you arrive at 5 yr mark and rates are too high, what also has occured is that home values have softened. So selling for enough to pay off mortg. and fees may be zero chance. That's when the real suffering begins.
The mortg rate climbs since it's no longer fixed, due to high rates, the house is no longer worth what it was. So no way to sell, and no way to refi. OUch!!

Answer 4

As a professional broker most people will probably move within five years. If you pay your fixed mortgage off in this time you will almost certainly be subject to an Early Repyment Charge. Also it depends what you think will happen to interest rates over the five year period, in truth nobody has a clue. I advise people to fix for a max of two to three years. If rates drop then you dont have too long too wait to remortgage.

Answer 5

No - and that's not a fixed rate mortgage, that's an adjustable rate mortgage, that adjusts at whatever the going rate is and your credit standing in five years. So if you get car loans, or other loans your standing might not be as "credit worthy" so your rate will be higher than the going rate.

www.bankrate.com - for info.

Check your bank, credit union where you have a checking and savings account. They have a vested interest in giving you a prequalified account and in keeping you happy.

I did hear that a major company is coming out (Jan, Feb. or March) with a no closing cost mortgage, and in the eastern part of the USA, that's big news.
They have not announced it publically yet.

GOD bless us, always.
MBA-Boston Univ.
CPA-retired

Answer 6

Go to www.fool.co.uk

This is the motley fool web site, gives you all sorts of good banking deals for Mortgages, credit cards and bank accounts.

10 pints for best answer would be nice.....

Thanks

Answer 7

Try Quicken Loans, Eloan, and Choice Finance.

Answer 8

What country? Only 5 years? Big payments.
Lots of good ones around it all depends on what you qualify for.

Answer 9

Apply online at www.surefirefinance.co.uk they should be able to help.