Owning your own home

https://m.realestate.com.au/property-house-qld-karalee-134205378

Any recommendations for a gas boiler engineer in North London? I'd normally use FullFlame but he's booked up for a few weeks.

Whats the hive mind thoughts on Mortgages atm? Get the fuck locked in for as long as possible because interest rates are only going up? Looking at a 5 year fixed repayment atm.

Under what situation could rates go up?

The one where property values go down so risk profiles on mortgages change, more than the one where BoE base rates go up (although that is a possibility if we get rampant inflation e.g. post brexit as goods become more expensive).

Even if rates don't go down, if you're not at a really low LTV and values crash, you could find yourself at a worse LTV when you next remortgage so the best rates aren't available.

They aren’t going to go “down” though. Not hugely. And in any real crash you are going to have bigger problems than your mortgage rate going up from fuck all to 2% - like losing your job. Which would have come first.

The question is more if I lose my job how long can I pay my mortgage.

How long have people been banging on that drum.

Hah probably jinxed it

Flat listed on Tuesday evening, 6 viewings booked in for Sunday morning and 1 for next Thursday evening

The lenders certainly think they might, from looking at the retraction of high LTV deals from the market.

Not saying it will happen, but the idea that it will be as easy to get a 1% rate when you refi a 2yr fix if things have gone to shit might not be a safe assumption - so you could take a view that a 5yr fix is better.

Plus if you think you might lose your job, wouldn't you rather not also have to worry about remortgaging at or around the same time? Standard variable rates that I've seen are worse than 2% and more like 4%; that's enough for it to hurt.

It all rather puts me off moving.

I have no idea what I’m doing, it’s just what I hear and you lot are smarter than me so came looking for answers...

I went for a 5 year fixed at around 1.3% the peace of mind of fixing is there for the term and the way I see it I wouldn't expect rates to hang around that until a 2 year term is up. Plus they're unlikely to go lower.

Wasn’t expecting to see a “Live Love Laugh”-esque decal to be honest:

1 Attachment

To play devils advocate, we went for a 5 year fixed in 2018, circumstances changed, a lot, and we’re selling as we’ve moved home to Ireland and now faced with a fine for buying out of our fixed term early (something like 3%)

2 year fixed with ‘low’ rates are kind of a con anyway - the fees are so high (plus you’ve got conveyancing costs at every re-mortgage) that it effectively pushes the rate right back up. 5 year fixed might have higher headline rate but be more efficient at paying off the capital.

This guys was superb when my boiler was losing pressure. Was recommended by someone on here and he was really great https://rokas.london

What are the chances you'll want to/have to move/sell in the next 2/3/5 years? If the answer is "feck all" then I'd go for 5 year fixed. There's really nowhere for rates to go down to, so the only way is up. If you might want to/have to move/sell then all bets are off.

I had Banham in to fit four locks, two to each of our front and patio doors. They also installed hinge bolts. I now have one pass-through key to all locks. Took them a morning to do the work. Total cost £1200 or so but paid monthly interest free over a year. Highly recommended.

we have just gone for a 5 year fixed @1.6% . We could have done slightly better on the rate but after product fees /cost of hassle we stuck with our current lender. in contrast we were offered 1.17% on a 2 year fixed

our rationale was that interest rates are only going to rise. even though this may not happen in the next 5 years, we would rather have the stability of the same (lower than our current) payments for 5 years

there is also a chance that interest rates will rise... brexit inflation? who knows

plus you’ve got conveyancing costs at every re-mortgage

Not if you stick with your existing lender. But yeah if they don’t offer the best rate then you might have to factor in other costs to switch.

It’s a weird time. Only you know what your risk appetite is and your future plans. If you want to move in the mid term then I’d think carefully before signing up for a five year fix.

^ looks like a wacky Top Gear caper

I just renewed my mortgage for 2 year fixed. No fees and no conveyancing costs at 1.4% with same lender - can't see the con there to be honest.

We've always stuck to relatively short mortgage terms as we have a habit of moving and don't like to feel locked into a mortgage contract. Long term this might be a terrible mistake. Short term it suits our way of thinking.

chance that interest rates will rise

so the only way is up

Or down...?

https://www.theguardian.com/business/2020/may/20/uk-sells-government-bond-with-negative-yield-for-first-time-coronavirus