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If I was mortgaging/remortgaging now I think I'd be looking for a 5 year fixed, but generally over that period I can't see house prices being down by the end of the term and if you choose an area 'on the up' you would expect to still see a decent uplift. Unless we really are seeing the first stages of global economic collapse London property is pretty insulated.
owl-
I went 10, but it was still under 2%. I'm paying an extra £40/month compared to the best possible rate (2 years fixed) I could get, but it wasn't worth gambling to me.
Risk of interest rates going lower than what I was paying: very low
Risk of interest rates going higher than what I'm now fixed at in 2 years time when I've got to fix again: medium - high.
NurseHolliday
What's the group feeling on the way interest rates and the property markets are going to go?
I've just had my max mortgage extended for a place to live and I'm pondering getting myself mortgaged up to the hilt to get out of a fairly toxic living situation which I currently find myself in. It's really tempting but I'm wondering if my desperation to get out is clouding my judgement.
Personally while I imagine the market in London will slow a little, I can't see it contracting in any meaningful way, and by the time I move out of any new place in four or five years time, I imagine it will by then have re-corrected itself. And if interest rates jump at least I'll be at the start of a two or three year fixed term mortgage, and in a place where I'm happy to live and work for a few years.
Does this sound wildly optimistic to anyone?