standard variable rate - worth dropping onto?>

manikm

ok.....as most of you know - im currently on a 5% base rate tracker.

my deals ends 1st Oct.

i have a few options - tracker or fixed deals etc.

but ive been doing lots of reading, and there is a strong possibility if inflation hits 5% then the Government will begin reducing rates - ive read even as low as 3.5%!!!

so, if i let me mortgage drop onto the SVR with Royal Bank of Scotland (current lender) can i change the mortgage to interest only for a few months....

then see how the economy is in a few months, then decide to fix or go tracker with whoever i want?

is it possible to change terms like that?

also will i get any penalties if i let me mortgage drop onto SVR?>

cheers guys

UK007BullDog

You are being speculative. Risky.

I would have thought if inflation goes even higher they will increase the interest rates to stop people from spending more. Having said that the BOE has no influence on the markets anymore it seems. The market does what it wants, mainly due to the high fuel costs and food costs.

Anyway you will not have a penalty for going into their SVR. They like it because they get more of your money.

For a fee you can go interest only for as long as you want. Then for a fee you can go back to repayment or you remortgage and go repayment.

manikm

thanks mate

i heard today that the us takeover today might mean cheaper deals coming ....