Remortgage advice please

Marie96

Hi

Looking for more advice please! We come to the end of our fixed rate mortgage tomorrow with the C&G.

I managed to get a 5 year fixed rate reserved with Woolwich back in April at 5.69 with a £1,000 product fee. I did have some concerns about us continuing to meet the 80% LTV however they have valued the house and that is now fine and we are due to complete on Monday.

With all the news about interest rate cuts at the moment I am really torn about getting a tracker or sticking with the fixed rate that we have agreed.

I know that it is impossible to fully predict changes to the market but would just like peoples' opinions if possible as to what we should do.

Thank you very much for your help.

Old_Git

If you go for a tracker will you loose the £1000 .
also depends on how much you earn and owe .
If rates increased could you afford the repayments .

fixed rate offer peace off mind

dimbo61

Stick with the deal you now have with the woolwich and be happy!
£1000 fee is £200 a year over 5 years
5.69% is a very good rate and 5 years gives you time to clear a big portion off your mortgage
If you can overpay ( check with lender if allowed )
I am in the middle of a 5 year fix and only wish I had fixed for 10.
Even if the government cut the BOE rate to say 1% the banks/ building societies will not cut there rates that low in fact some lenders are increasing there tracker deals
You have a damm good deal so snap in up with both hands and overpay to become mortgage free in 5 years !!!!

Marie96

Hi

The £1000 is paid on completion so we would only lose the valuation fee of approx £150.

We owe approx £103,000. I'm currently on mat leave and looking to go back p/t but we are still likely to have a combined income of about £45,000 so there is some scope for increased payments within reason as we don't have any other debt.

We can overpay up to 10% p/a with the Woolwich and are looking to overpay using the difference between what we are currently paying and the new reduced amount. Not sure we will be able to be mortgage free in 5 years though - especially with the our new money eating machine (baby!).

dimbo61

Good luck with the new cash machine ( baby )
Just think in 18 years you will I hope be sending the oldest ! child off to uni so if you plan right will also be mortgage free and able to support your child through university.
Any overpayments will help and 5% a year will clear mortgage in 15/17 years