Fixed Rate Mortgage vs Variable Rate - April 2017 Forward

[freedomnow]

Can anyone please advise on a fixed rate mortgage vs variable deal below in current climate going forward April 2017 ?

 

Person I know has been offered on a 30-year mortgage zero down.

 

Variable yearly (Y) rates 1-5 at :-

 

Y1 2.99%

Y2 2.99%

Y3 4%

Y4 4.75%

Y5 MRR (-1)

Y6 Variable at prevailing market rate

 

[freedomnow]

I'm not sure what MRR (-1) means right now on year 5.

 

I don't know if that is a tracker rate linked to BoT rate or if it is the dreaded UK SVR style that has come in, where they can choose whatever rate they so desire at any time during the repayment period...

[trogers]

MRR - minimum retail rate

MLR - minimum lending rate

 

Usually MRR = MLR + 1.5%

[freedomnow]

25 minutes ago, trogers said:

MRR - minimum retail rate

MLR - minimum lending rate

 

Usually MRR = MLR + 1.5%

Thanks ! Is that MLR regulated/tied to some official BoT rates etc ?

[swissie]

To make a comparison, one would need a quote for a 30 y fixed rate from the lender. Loan in THB, US$ or what? Cheers.

[trogers]

8 hours ago, freedomnow said:

Thanks ! Is that MLR regulated/tied to some official BoT rates etc ?

There is correlation, but not 100%. The banks are also influenced by rates abroad.

 

But it will rise due to an exodus of foreign money when the US raises their rates.

[freedomnow]

23 hours ago, swissie said:

To make a comparison, one would need a quote for a 30 y fixed rate from the lender. Loan in THB, US$ or what? Cheers.

Thai baht local lender.

 

Have not obtained the fixed rate quote yet.