Mortgages Should You Fix For 2 Years Or 5 Years - Interest Rates

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  • Опубликовано: 29 окт 2024

Комментарии • 51

  • @propertyaccelerator
    @propertyaccelerator  Год назад +1

    🔥 Get Access to the Property Accelerator Course HERE: property-accelerator.co.uk/join/

  • @raymondfacey6823
    @raymondfacey6823 Год назад +5

    Great Video , my current 5 year fix (at a touch over 2%) is up next July , each 1% costs around £100 a month , my instinct at the moment is to fix for 2 years (probably at around 5% by then with as low a fee as possible) and then as others have said do a 5 year fix in 2026 when hopefully rates "normalise" in the 3.5% to 4% range (assuming no new pandemics or wars...)

  • @checkarou2232
    @checkarou2232 6 месяцев назад +1

    Really informative, thank you!

  • @Jabs578
    @Jabs578 Год назад +1

    Great info. I’ve done a remortgage on a 5.69% interest only, 5 yr fix with a £1,495 fee, monthly payment is £653.00, rental value is £850.00, let’s see how it goes, looking for a property now,

    • @stevep8321
      @stevep8321 Год назад

      So £200 pm before costs and taxes, how did you get that to stack up or are there no taxes to pay in your case (which I think for most people would then give them a small margin before other costs, presumably it's a long term view on property values ?

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      Nice and you can see if you can add value to the property (extra bedrooms etc). Also something to consider would it work on Serviced Accomodation or HMO could get you better rent.

  • @Blackedoutewoks
    @Blackedoutewoks 8 месяцев назад +1

    I’m looking at 2 year fixed! But I am seeing in the news this morning about Mortgage rates for both 2 and 5 year fixed deals! My current five year fixed deal ends in March so I need to get things sorted ✔️ ASAP! I think 🤔 the two year fixed deal is still best and hopefully rates will drop by then?

    • @propertyaccelerator
      @propertyaccelerator  8 месяцев назад +1

      I would speak a broker to work out whats best for your financial circumstances. I am looking at 2 years myself but make sure it works for you in case rates rise.

  • @dfaulkner9602
    @dfaulkner9602 Год назад +1

    Great video James. Very informative!

  • @millennialfreedom9137
    @millennialfreedom9137 Год назад +4

    2 years all round. The rates are the highest it’s ever been why would I fix on these bad rates. Looking for cheaper deals. Will fix 5 year after they drop

    • @Bubbles77418
      @Bubbles77418 Год назад +3

      Actually, they're not! Pretty normal rates if you look back...... the low rates we've been used to are not coming back for a very, very long time!

    • @millennialfreedom9137
      @millennialfreedom9137 Год назад

      @@Bubbles77418 it cost the government a lot to service the debt. There is more debt now then there was back then. Keeping interest rate this high will be not sustainable. Once inflation is on track for 2% or recession hits interest rates will fall and back to QE. Bank are well protected now better than before so they can afford to offer competitive rates. We got election coming soon. U S mention recession in 2027. Think will get a mini uptick end of 2024-2025 before a big crash

    • @shyturk10
      @shyturk10 Год назад

      @@Bubbles77418why are you comparing rates back then when houses prices were half the price.. these rates now are at peak and they will go down by the end of next year!

    • @ronniefront511
      @ronniefront511 Год назад

      “Highest it’s ever been” ?
      It’s thinking like that, that may catch a lot of people out.
      The average rate throughout the BOE history is 4.66% so there’s no evidence to show rates will drop anytime soon.

    • @shyturk10
      @shyturk10 Год назад +1

      Yes they aren’t the highest they have ever been but with houses prices at the highest they have ever been these rates are high when you combine them both so I would never go for more than. 2 year fix atm. Bu the end of next year or beginning of 2025 they will go down.

  • @lukaszjaniak7408
    @lukaszjaniak7408 Год назад +4

    Why not considering a tracker?

    • @davidjohnbarnard
      @davidjohnbarnard Год назад +1

      My question also James - the scenario you paint with future reducing interest rates is best suited to a tracker mortgage or am I missing something?

    • @neale3871
      @neale3871 Год назад +1

      I was looking over the last few weeks and can't find very many tracker rate deals, and those I could find had £999-£1,999 fees. It would take a significant drop in BoE base rate to make that worthwhile.

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      I think a tracker is a good option right now, depends on your tolerance for risk.

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      A tracker could be a good option now for sure.

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      👍

  • @talk2s5061X
    @talk2s5061X Год назад +3

    Great informative video mate, i wish my broker gave me this much detail 😂

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      I know what you mean sometimes its just pick this one of that one without much explanation!

  • @TipTopPets-bn9sv
    @TipTopPets-bn9sv Год назад +1

    Even if you are on 5y fix you can get further advances. No need to continuously fix for 2y as you argument that it allows you to extract equity. Additionally, having many if not all portfolio at 75% is not nice, again personal choice. My preference would be to have most to be 50/60% LTV, thats a big buffer.
    Re:fees lenders are not being cheeky/tricky. It allows landlords to remortgage as actual interest rate is low enough to allow for rent coverage (ICR) so this is needed for some badly otherwise they sit on SVR which is mad. Of course if your rent is enough as with most properties outside London choose with low fee or no fee at all.
    Broker is essential in this

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      You can but most people just do it at the same time as a remortgage. Ive got a video about fees I think you will find interesting.

    • @TipTopPets-bn9sv
      @TipTopPets-bn9sv Год назад

      @@propertyaccelerator and that is the point. There is no need to remortgage if further advance can be taken, hence your argument that you take 2y deals to allow you to extract equity is not valid

  • @Darren306
    @Darren306 Год назад +4

    My fixed mortgage due to end Jan 24. Going from 1.89% to 5.49%. I just noticed it dropped down to 5.16%, hopefully the rate continues to drop

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      Thats good news, yes hopefully it will drop a bit more.

    • @goober-ll1wx
      @goober-ll1wx Год назад

      They will go back to zero when the recession hits later this year/ H1 next year...

    • @okunrin3
      @okunrin3 Год назад

      Any Mortage from 1.89% to anything above 3% is not great.
      Celebrating a drop from 5.89% to 5.18% is not great news.
      The Tories must be voted out TOTALLY.
      We know they are not sympathetic, people only vote for them because of the deception that they are good for the economy, but we can all see that they are clearly not.
      They are bad for business, the BTL business has never been worse in the history of UK 🇬🇧.
      They cant grow the economy, can’t control inflation, raised taxes most in history, corruption is endemic, they are just bad news.

  • @mrmeldrew693
    @mrmeldrew693 Год назад +1

    My mortgage is due for renewal next April.
    Very tempted to go with a tracker at this point.
    Why do we need to give them a grand everytime we renew though?! Such a con!

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      Its definitely an option if you know what you are doing. Dont do this kind of deal if you cant afford the risk of rates going higher.

  • @cyberstud0074
    @cyberstud0074 Год назад +1

    Thank you for all the valuable information shared. I intend to buy a leasehold flat £325k in London Zone 5 and the price is 2019 range the seller bought. The Ground Rent is £150 per year but it increases 4% RPI ( I dont know the review period as I checked the title summary paying £3 and did not get any info. The lease remaining is £115 years. Does it mean that in 50 years time the Ground rent would exceed £1000 per year and the property will become AST . And in 100 years the Ground Rent becomes £7500 per year.

    • @propertyaccelerator
      @propertyaccelerator  Год назад

      I would speak to a leasehold solicitor, I think if you renew the lease you can get rid of that ground rent.

  • @krisztianomboli3972
    @krisztianomboli3972 8 месяцев назад +3

    Todays market= daylight robbery

  • @queensberryrulez5306
    @queensberryrulez5306 Год назад +1

    FREE MORTGAGE ADVICE!

  • @exxonein7729
    @exxonein7729 Месяц назад +1

    Fowsand 😂😂😂