Mortgage best buys and likely changes in market

I bought my first house two years ago and my mortgage deal (with Nationwide) is coming to an end. With some help with the maths from this group, I convinced myself that the deal I got then was the best one at the time. Now it's time for me to remortgage, I'd like to seek people's advice again:

1) What are some likely 'best buys' that I should at least check out? 2) How do people think the market for new mortgage deals will change in the coming few months? I'm half tempted to let our current deal revert to the lender's standard rate for a month or two while the current crisis eases, in the hope that it might be cheaper overall to get a better deal in the near future than to get one of the deals on offer now. 3) I'm judging the value for money of a mortgage deal by pretenting that the amount I'm borrowing is going into a savings account, and that any fees are taken from that savings account at the start of the loan period. Mortgage repayments are taken from this imaginary savings account at the time they are made, and at the end of the mortgage deal the outstanding amount is repaid from the savings account. I can thus define an 'equivalent rate' for the mortgage deal as being the interest rate that this theoretical savings account must pay me, in order for it to have just enough money to exactly repay the outstanding mortgage balance at the end of the mortgage deal, but no more. Does this seem reasonable? It certainly seems more intuitive to me than the 'true cost' quoted on some mortgage comparison sites, which I'm not sure I understand or trust.

Any advice appreciated!

Thanks,

Joe

Reply to
Joe Kelleher
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Try a IFA and look at some of the Finance web sites like

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A difficult question to answer - it might get worse in the short-term.

What to do depends what you want - cheapest payments, fixed payments, no fees or something else? From what I can see the discount and fixed rate products don't seem very good at the moment (no surprize there). It is tempting to wait and see, but rates may not drop for a while yet. I would be hesitant to tie-in for a long term discount or fixed rate product. Maybe a short term discount may be useful, but watch out for the fees. It really depends on your circumstances.

I just use the total cost over the lifetime of the mortgage (i.e. the discount/fixed rate period).

Reply to
Mark

Thanks for this information and it is really nice to be a part of thi

forum.

' Canadian Money Blog'

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MoneyAdvice

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