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[Field Marshal Dr. Opti]

It's fortunate that you possess almost unlimited wealth, Aaron.

Ah, if only!

So I was looking at mortgages last night and, if I'm roughly right on the value of the house, it looks like the best options would be:

1) 2.19% for two years (then 5.99%), saving ~£450/mo
2) 3.34% for five years (then 4.49%), saving ~£330/mo

In overall terms the second saves considerably more, but that headline £450 a month would be very nice.

The question is.. what are interest rates going to do in the next ~24 months.  Does anyone have a crystal ball?

 A crystal ball is not necessary. They are almost certain to rise.

[Rods2]

It's fortunate that you possess almost unlimited wealth, Aaron.

Ah, if only!

So I was looking at mortgages last night and, if I'm roughly right on the value of the house, it looks like the best options would be:

1) 2.19% for two years (then 5.99%), saving ~£450/mo
2) 3.34% for five years (then 4.49%), saving ~£330/mo

In overall terms the second saves considerably more, but that headline £450 a month would be very nice.

The question is.. what are interest rates going to do in the next ~24 months.  Does anyone have a crystal ball?

 A crystal ball is not necessary. They are almost certain to rise.

If the end of 2014 and 2015 are the end of an average length economic cycle then they will probably stay where they are. Remember there is an election in May 2015 and the government will do everything possible to feed the current boom. When it comes to elections Clinton told us what counts "Its the economy stupid". After May 2015 who knows.

Had to laugh at Cameron yesterday saying that the BOE is completely independent of the Government. On that basis, so is the UK, the EU has no say or influence. 

[aaronjb]

A crystal ball is not necessary. They are almost certain to rise.

True - the only real question is how soon and how high..

I just booked a 'free valuation' with a local agent to get an idea of the value of the house (knowing that mortgage valuers almost always go lower, at least it will give me an idea) - I'm sure they'll spend most of their time on Monday trying to persuade me to market my house with them, of course..

I'm crossing my fingers the number is high enough to put me in the <75% LTV bracket (figures above were from the <80% LTV bracket) as there are some really attractive rates there. Saving £400/mo over five years would be nice..

[chrisgixer]

Valuers are deliberately under valuing in an attempt to keep property prices low. By as much as 40k on property around the 300k mark in this area anyway.

[Sir Tigger KC]

Carney said the other day that despite unemployment falling there is no rush to increase interest rates. 

[chrisgixer]

Agents however will simply tell you what you want to hear.

[Marks DTM Calib]

Ah mortgage, 9 years left and counting, happy days

[aaronjb]

Ah mortgage, 9 years left and counting, happy days

*sticks fingers in ears*

La la la la la la la I can't hear you!

[aaronjb]

Valuers are deliberately under valuing in an attempt to keep property prices low. By as much as 40k on property around the 300k mark in this area anyway.

That kind of under valuation would, I reckon, make this place worth less than I paid for it just after the crash.. which would be unfortunate!

[chrisgixer]

It's under what was considered market value by 20k. Plus the market had risen 20k locally in short order.

[Martin_1962]

Tracker +0.99 over base rate

[Kevin Wood]

Tracker +0.99 over base rate

I think mine's lower than that, for the life of the loan, too. 

[aaronjb]

I was chatting to a friend of mine at work and with his details he was getting products in that kind of region, too - 1.49% was the one I remember.. but for that you needed an LTV of <50%, dreamland territory for us mere mortals 

[ronnyd]

Mortgage finished . Mine, all bl..dy mine.

[Field Marshal Dr. Opti]

Mortgage finished . Mine, all bl..dy mine.

It's at times like these that you're glad you haven't rented for the last 25 years.