About to remortgage - help!

cleagarr_2

My great fixed rate deal with A and l is coming to an end. At 94% they're the only people who will lend me the sum. I need fixed rate and at the moment this is 6.69%, meaning my payments will go up by £230 a month.

My question is: is it worth going on the SVR for a month or so and waiting for them to cut this rate? I would assume that the rate at which banks lend to each other will fall and so will the Fixed rate deal. Any thoughts??

manikm

i asked a similar question and got told that i was being speculative \ risky.

but it paid of - from a 6.53% rate (fixed), i got a 5.79% tracker (sorry 5.29% - thanks to rate cut)
)

manikm

i asked a similar question and got told that i was being speculative \ risky.

but it paid off - from a 6.53% rate (fixed), i got a 5.79% tracker (sorry 5.29% - thanks to rate cut)
)

beecher

cleagarr wrote: »

My question is: is it worth going on the SVR for a month or so and waiting for them to cut this rate? I would assume that the rate at which banks lend to each other will fall and so will the Fixed rate deal. Any thoughts??

I wouldn't assume this - it is possible, but not definite. Hard to know for sure what direction fixed rates will go in, and maybe a tracker would be a better bet for you? If you decide to go for a tracker, make it quick as a lot are being pulled.

cleagarr_2

beecher wrote: »

I wouldn't assume this - it is possible, but not definite. Hard to know for sure what direction fixed rates will go in, and maybe a tracker would be a better bet for you? If you decide to go for a tracker, make it quick as a lot are being pulled.

The problem with the tracker is the fee of 1% (£2370) that feels massive to me with the fixed only costing £399.

beecher

cleagarr wrote: »

The problem with the tracker is the fee of 1% (£2370) that feels massive to me with the fixed only costing £399.

Are you looking at these rates?


http://www.alliance-leicester.co.uk/mortgages/existing-customers-rates.aspx

I don't know if they've updated their trackers or not but there's some at 0%. You need to crunch the figures really and work out if the SVR is more affordable, and work out if you're willing to take the risk that fixed/trackers go up and not down.

cleagarr_2

Thanks for the response - I really appreciate it.

The tracker (when they adjust it) would work out at at 0.10% less than the fixed I've been offered, but everyone says rates will be cut further..... I think I'll go with the fixed as I can (only just) afford it and with two babies and a wife on maternity pay as of next month I need to secure the roof over their heads.

It will be just my luck that I'll sign on and within 3 months they'll cut the rate!

herbiesjp

With you being on 94% I would move quickly to get a deal secured

Is the 6.69% deal the 2 year fixed rate?

Would a 5 year fixed rate be better for you? In 2 years time the house value may be lower, and that would mean being over 95% and not many options at all

With a 5 year deal at least there may be a chance that house prices will have started moving up again, and could mean moving onto lower LTV deals available to you