pugsy Posted March 20, 2007 Report Share Posted March 20, 2007 Guys, whats the current feeling on rates? Are we fixing, tracking or what? Any views appreciated. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 20, 2007 Report Share Posted March 20, 2007 This going to depend very much on how long you intend to keep the property - how much flexibilty you need in terms of further advance and may be you need real cheap money for a year if doing major works etc. Personally i have a good balance accross my portfolio of discounts fixed and capped trackers! But if it as a straight foward remortgage fixed is my preference at the present time as i think we will see a few more clicks in the wrong direction b4 the year is out! I am not a financial advisor so this is just my opinion for what it is worth ! If refinancing it is always neccesary to over view whole portfolio and look at possibilities of reducing your personal mort at home as you cannot claim this back anywhere - or can you !!!?? I do as it has been arranged to support my portfolio and acts as bank acc mor with o/d limit set at 90% ltv Yes eevn got a cheque book for it - all Landlords should look in this if they havent already! Time to maybe repay yourself some of the deposit monies you have stumped up out of your own pocket to reduce your personal mortgage and at the same keep the btl fairly high and so reduce tax liability on a smaller profit but pick it back up by not payinf it at home ! What do we think guys ? Simon Link to comment Share on other sites More sharing options...
Matthew Posted March 20, 2007 Report Share Posted March 20, 2007 In the past 6 years I have been buying properties, financial advisors and experts tend to have a good idea what is going to happen. At the moment I would suggest interest rates will go higher still, to about 6% and may stay there for a while before coming down. Now I would only go for fixed as you know where you are and the rates aren't that much worse, like they used to be. But in the past IFAs have said the rates are going down for the next few years, I got a tracker and they did. They then said they were going up, so I fixed, and they did go up, so do a lot of analysis, but always be on the cautious side. Link to comment Share on other sites More sharing options...
Melboy Posted March 20, 2007 Report Share Posted March 20, 2007 Guys, whats the current feeling on rates? Are we fixing, tracking or what? Any views appreciated. There is almost a certain bet that IR's are going to be raised by 1/4 of 1% probably as early as next Month. The IMF have had a right go at Smiler Brown last week over his so called economic miracle policies and the IMF control all and they have almost 'told' him and the Bank of England to get IR's up again asap. On that basis then a good fixed rate policy is what is needed but Banks and BS have more or less pre-empted the next rate rise by adding a small % to their last rate rise. Link to comment Share on other sites More sharing options...
Melboy Posted June 28, 2007 Report Share Posted June 28, 2007 Gosh! was I the last to post about this subject in March Anyone want to have a bet with me for next week? No I thought not! It would not surprise me in the slightest if the BoE went the whole hog and put rates up by 1/2% to 6% We shall have to wait and see. Mel. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 28, 2007 Report Share Posted June 28, 2007 Mel have to say i agree - especailly in the light of todays news of house prices having bigger % increase last month.............. Not good news -as natural correction in market is being held off by lenders fee policies (see other posts) and we are now woking on an artificially created price rise, with many btlers going to be roasted at the stake .....they just dont realise it yet ........ As BoE view is somewhat distorted on retail spend and first time buyers are still sqeezed out - Rate will , i think, will go up, and continue going up until, -pushing btl mort fees up - and will only settle when retail figs "appear" to calm down ie when asda and tesco have a bad month - no consideration is given to the small business who are fighting for survival as the big boys figs swell - producing some very misleading data to act upon. Also when LL wake up to the huge Mort set up fees(as the IR goes up it is not your monthly pymnt that is going to rise (fixed)but your new set up fees to pick up the missing balance) this i can see geting very silly with set up fees approaching £10k+ as the IR takes off - as lenders leave the LL "thinking" they are still making a profit, which in fact will become a very tangible loss in the not to distant future - BTL has seen some very good "easy" years but the mainstream party is over ! People investing now need to have their wits about them and consider the longer term implications af the deals they are getting into !!... He who dares ......wins....................(as long as he has his axxe well and truly covered !!) Yep i with you on this one - as a shock tactic they may well go a full 1/2 % but they may well also leave it exactly where it is for the good of many ! I for one am looking at my portfolio to see what can be moved to a fixed rate at a sensible fee ............... Simon Link to comment Share on other sites More sharing options...
lauralivesartnouveau Posted June 29, 2007 Report Share Posted June 29, 2007 Hi I always go for a fixed rate for the longest period possible. This is because I find it easier to work out how much my monthly mortgage payment liability figure is if they don’t keep changing. Once you get loads of them its hard to keep track. Oliver Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 30, 2007 Report Share Posted June 30, 2007 Hi Oliver Yep, can completely agree with that ! I hate paperwork, and the wad of mail i get every time the rate changes is a pain in the axxe, then having to update my "back office" and then checking them all on statements takes up stupid amounts of time, especially with the lenders who cant be bothered to put the address on correspondence and just work off acc nos!! Simon Link to comment Share on other sites More sharing options...
Molly's dad Posted June 30, 2007 Report Share Posted June 30, 2007 I like fixed but the deal I was offered my MX last week was 5.34% fixed or 4.99% tracker and this means I can pull and extra £10k out of the deal. Means the difference between cashback and cash-in. Sometimes rates dictate what we need to do. MD Link to comment Share on other sites More sharing options...
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