Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 08/06/2010
We are coming to the end of a fixed 2 year deal with Nationwide (end of August) having been caught out by having a fixed deal just as all the rates dropped like a stone. I would like to know if fixed is the way to go (long or short term?) or would a tracker be better?
Categories: Fixed or Variable?, Remortgaging
Posted on 10/04/2010
We have just had a mortgage agreed by a lender offering a 5 year capped tracker, at 2.49% over the base rate, and capped at 5.99%. It was a toss up between this and a 5 year fixed at 4.5%. We took advice that the product did have an element of 'buy now pay later' attached to it, but the deal was still attractive given the risk. we are now reading reports and are wondering if we have done the right thing! We have no dependants and could weather any increase but don't want to end up paying over the odds. Have we tied in for too long??
Categories: Fixed or Variable?
Posted on 02/06/2009
I owe £116,815 on my interest only mortgage, I am making a capital payment in December so the balance will be 108k, getting my ltv at 60% borrowing. The mortgage is libor plus 1.5% and I'm only paying 2.77% at the moment. I don't want to fix yet because the interest is very low, when should I look at getting a fixed rate and how long for and what percent? I'm happy to keep making regular yearly capital payments plus i max out my ISA allowance every year to go towards the mortgage in years to come?
Categories: Fixed or Variable?, Remortgaging
Posted on 11/02/2009
I am considering fixing my mortgage for 5 or 7 years. Do you think I should do so now or wait for the likely further reductions the base rate over the next few months?
Bank Rate is likely to have to remain very low until well into next year and so I think there will be a window of several months to fix at a good rate. Also, when the Bank of England starts quantitative easing in March, i.e. buying some longer dated assets, that may push rates down a little.
Categories: Fixed or Variable?
Posted on 05/02/2009
Hi
Not sure how best to proceed. Looking to buy. Have a good deposit. Salary level not high. Can I still get a good rate mortgage? Should I go for tracker or a fixed rate? please help.
thanks much
SJ,
Without knowing more details I can’t be too specific but the minimum deposit you need to get a mortgage today is 10%, which I presume from your email you have, although to get a good choice of mortgage deals you need a deposit of at least 25%. Interest rates are likely to stay low until at least next year, and so in my view there is no rush to get a fixed rate, but there are very few trackers on the market, and virtually none with a deposit of less than 20%.
Providing you have no financial commitments you should be able to borrow around 4 times your income.
For specific advice taking full account of your personal circumstances please call us on 0800 71 81 91 and one of our consultants will be delighted to advise you on your options.
Categories: Fixed or Variable?
Posted on 29/04/2008
Could you explain the difference between a discount tracker and a variable rate tracker?
Categories: Fixed or Variable?
Posted on 05/03/2008
My current mortgage runs out on May 1st. What do you suggest I do? Should I go for fixed again or a tracker? With rates due to fall, would this be the best option?
Categories: Fixed or Variable?
Posted on 05/03/2008
Hi Katie, I'm coming to the end of my fixed rate deal and have the choice of another 3 year fixed rate (5.99%), a 3 year variable discounted rate (5.79%) or a 3 year tracker (5.74%). What would you advise to be the best one to go for? Thanks. Brian
Categories: Fixed or Variable?
Posted on 17/01/2008
I am currently resetting my mortgage and am drawn towards fixing for 3 years at 5.89%. Do you think this is advantageous under the current and potential climate or would you consider a lifetime tracker of 0.47% above base. Thank you.
Categories: Fixed or Variable?
Posted on 08/01/2008
My fixed rate mortgage stops at the end of March. I want to find the cheapest interest rate. Which is better a 2 or 5 year? Is the interest rate going up or down?
Categories: Current rates & the market, Fixed or Variable?, Remortgaging
Posted on 11/10/2007
My 2 yr fixed rate mortgage with Nationwide ends in March 2008 (4.84%). I am looking to take out a 5 yr fixed rate mortgage yet cannot decide when to reserve it. with the lowest fixed rates at about 5.6% it is tempting to reserve one now. Alternatively, is it worth waiting until next year to see if fixed rates come down following an expected BofE base rate cut? Will a cut in base rate automatically results in cheaper fixed rate mortgages?
Categories: Fixed or Variable?, Lower mortgage payments, Remortgaging
Posted on 04/10/2007
What is the feeling regarding the bank of England interest rate, is it expected to rise over the coming 6 months due to US problems and the fact the government will want us to save? I am currently considering a tracker. Please help.
Categories: Fixed or Variable?
Posted on 03/10/2007
I need to change my mortgage, and would be interested in your advice as to whether I should go for a fixed rate or variable rate, based on current market conditions.
Categories: Fixed or Variable?
Posted on 16/09/2007
I really need your impartial advice, First National Home Finance via Pink Home Lenders have agreed to provide me 3 year fixed rate mortgage @ 6.14% (re-mortgage). I believe when I initially applied the rate was only 5.5% and in short time this had jumped to 6.14% which is very bizarre to say the least. And I am in danger of the rates going up again if i don't submit my declaration before 28 September 2007. The mortgage is free fees everything taken care of etc. Please could you tell me if I'm making the right choice? I have gone through a reputable finance broker and he did secure 4.9% 2 fixed rate on my first mortgage, which was a good deal at the time. I would greatly appreciate your prompt response regarding this matter.
Categories: Fixed or Variable?, The application process explained
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.