Mortgage advice desperately needed

Simba_Simba

Hi there

So We currently have a great rate with Birmingham Midshires at 0.25 below base rate tracker. This goes up next month to 1.99 above base rate- a hike of about £180(Birmingham Midshires)

I've been searching and searching using all the tools available and the best I can find is 5.95 fixed fr 2 years with £1480ish fees. (Newcastle)
My dilema is do I stick where I am and therefore not have to pay an arrangement fee and no redemption fee when (???) things improve.

Or do I risk a fixed term rate which costs so much to set up and rates could go down?

Dilema Dilemma- please advise me!

Gorgeous_George

I make it that your mortgage is about £150K (if it was a 25 year deal). After 3 years you owe £139,907.

New deal
Borrow £139,907 and add the £1,480 to the loan making £141,387 you will pay £961.61 for 2 years after which you will owe £134,764

Current deal
You will pay £1,039.24 for the next 2 years but will owe £134,148 after that time.

On the face of it, the new deal comes out top but watch out for exit fees from either product.

GG

herbiesjp

Is this for a residential mortgage?

There are better 2 year deals there with lower fees - all depends on the property value and mortgage amount needed though

Simba_Simba

Thanks. It is a residential mortgage for about £140,000.

Do I risk the variable or the fixed, there are so many pitfalls in this at the moment!

Is it bad to be glad that so many other people are in a similar situation?:o

herbiesjp

The choice of fixed or variable depends on how tight your budget is.

If a rate rise would put you over your monthly budget then fixing it is the better idea - giving you safety and certainty over your mortgage payments

However if you have quite a high disposable income then a tracker of some sort could be the route for you.

What is the property value so we can see what the LTV is?

There are still some deals better than the one you quote, but you need to be quick as they are all going up at the moment