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The most important thing is to have a plan based on your likely personal circumstances. So think through your personal scenarios.
For eg; we paid the premium for a 5yr fix, not because we actually thought rates would rise over 1-3yrs, but because we worried that if we had a kid in yrs 2-3 and our incomes dropped we'd struggle were there an increase in rates. We had been out of the country so had less choices of lenders, so if kids weren't in our mind we may have gone for a 1yr, followed by a 2-5yr but with more choices of lenders at that point.
My 2p is that any rate increases will be super slow so as long as you can afford 0.5% you'd be fine. But ideally you should be able to withstand 1%.
If it's any consultation we paid somewhere between £25k-50k too much for our place and our interest rate is almost 3%.
In terms of moving your LTV, lenders are notoriously bad at adjusting upwards to the market value. So honestly that £50k may well be better spent paying down your mortgage if reducing your LTV is the aim.
As to housing prices, the UK still has excellent property laws, a strong legal system, great luxury shopping, and some of the best tax planning minds in the world. Combine that with a weak pound and London will still attract foreign money looking for a wealth preservation strategies.
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hugo7
@DethBeard
We bought in Feb with a 2y fixed, on a 90% mortgage.
The plan was to spunk 50k on updates and renovation (new heating, electricity, windows, added en suite to master bedroom, plus decorating and external cladding) then remortgage at a much lower LTV (we got the house for ~75k less than similar were selling for in the area)
That plan may well back fire now.
Ho hum.