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New fixed rate or SVR is cheaper?
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Sometimes_Sensible
Posts: 4 Newbie
I have a fixed rate deal with First Active arranged through London & Country coming to an end at end of Nov. Since we set it up my wife has given up work to be full time mum and carer, meaning that our household income has dropped and London & Country have advised we're unable to go anywhere other than First Active for a new deal.
Although it looks like we shouldn't be able to afford our mortgage, we live frugally and so have never defaulted on any payments.
The confusing bit for me is that, whilst First Active have offered what seems like a not-too-bad FR deal of 5.95% for 2 years with £999 fee, their SVR is currently 5.60%. So it would be cheaper for us to revert to their SVR than go onto a FR? Most people seem to be saying that Bank of England are likely to make further cuts to the base rate so that would mean it would get cheaper still?
Help I'm confused! What do you think?
Thanks in advance for any advice.
Although it looks like we shouldn't be able to afford our mortgage, we live frugally and so have never defaulted on any payments.
The confusing bit for me is that, whilst First Active have offered what seems like a not-too-bad FR deal of 5.95% for 2 years with £999 fee, their SVR is currently 5.60%. So it would be cheaper for us to revert to their SVR than go onto a FR? Most people seem to be saying that Bank of England are likely to make further cuts to the base rate so that would mean it would get cheaper still?
Help I'm confused! What do you think?Thanks in advance for any advice.
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