Fixing in an attempt to time the market, second guess the financial institutions and save money over a competitive tracker rate is a mug's game. Only fix if you really need to.I was just curious about whether hedging against a scary escalation of rates would be prudent.
That was during the currency crisis when some rates went as high as 20% as far as I recall. Less chance of this happening these days especially with the ECB in charge of rates. For example given the state of our economy at the moment rates should arguably be much highere but since they are set centrally for all of the eurozone these days they are relatively low.It went to 15% or so once in my memory, it could again, although I believe it's less likely now.
Unless you are concerned that you would be hard pushed to meet your mortgage repayments if rates increased by a few % then you would probably be best off opting for the most competitive tracker available for your specific circumstances (which may involve switching lenders).
Yes, I think it would take something catastrophic like the Euro being dismantled for rates to hit 15% again.
How much is outstanding on your mortgage?
How much is your property worth?
On variable/tracker rate loans they cannot penalise you for making additional capital repayments. Some may have minimum lump sum amounts that they will accept. Most should allow you to increase your monthly repayments above their normal amount to allow for regular capital repayments thereby shortening the effective term.Do all banks readily accept extra payments?
Extra hassle for them maybe but increased savings for you if you make repayments more frequently and your lender calculates interest daily (as most do these days).When I was taking out my mortgage I asked about paying weekly or fortnightly, which is common practice elsewhere to reduce interest. I was very much put off the idea by the bank, who inferred very little benefit for much potential extra hassle.
On a fixed rate yes. Illegal on a variable/tracker home loan though.I also note that my bank will charge 50% of interest lost to them if I pay my mortgage off early. Is this standard with all lenders now?
.we will pay your title insurance costs or €1,000 towards your legal fees. However, if you move your mortgage from Halifax within five years, you will have to repay this legal contribution to us.
And we will pay your valuation fees (up to €150), once you drawdown your mortgage.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?