Remortgage - What would you do? (Fix or SVR)

BaileyB

Hi my Mortgage is due at the end of this month and have already agreed a fixed rate for 5 years at 5.78% but with the .05% cut yesterday not sure what to do and should i just wait a little longer and see what happens next month.

There is no fee with this and it's with Nationwide.

Also the value and mortgage i need is only 65%

Any advice would be great.

freebo_2

I'm in a very similar position, also coming to the end of a 5 year fix with Nationwide. I went for a 3 year tracker which also gives you the option to transfer to a fix at any time with no fee.

As an existing customer you get .64% above Boe base for a fee of £299, as bas has just come down by .5% (and forecast to go lower) this seems a pretty good deal to me.

HTH,

Mike

Locoblade

Im by no means an expert, but from what Ive read and seen, I don't expect fixed rates to drop significantly in the near future, if at all. LIBOR rates (the rates that banks lend each other money) are what determines fixed rate products in particular, not the BoE rate, and with the credit crunch etc, banks are wary of lending to each other so the LIBOR is unlikely to drop significantly until that eases. Fixed rates were dropping slowly until about a month ago, then they started creeping up again following Lehman Bros going under, so its anyone's guess what they'll do in the next few months given recent events.

This is only an (unqualified) opinion, but personally if I was after a fix because of the peace of mind it gives, then I'd probably carry on with what Id been offered. if I wanted best short term value for money, then a tracker probably looks the best bet at the moment, but obviously it leaves me open to fluctuations in the BoE rate, and there's no guarantees the BoE rate will stay low. Personally though, given the fact that we could swallow a reasonably large increase in BoE rise before we were in trouble financially, Ive gone for a tracker when my existing deal expires at the end of the month.