Choose a fixed rate at this time?

sjh5000

I have to renew my mortgage at the end of February, but I have only 90% LTV so my options are limited.

I think that I have two options. Firstly, move onto my current lender's SVR (6.94%) and hope that a good fixed price comes along before house prices drop to the point where my LTV means that I can't get any other deal. Secondly, take a fixed rate now, but possibly end up paying a higher rate than if I'd waited longer. What would people do in my situation, and why?

Current mortgage: Alliance and Leicester, 5.3% fixed until March 2009, then SVR after that (6.94%, at the moment).

Best fixed deal I can find: Brittania BS, 6.44% fixed for three years, no arrangement fee but a £200 valuation to pay for.

savemoney

My fixed ends in Jan 09 but the svr would be 1.9% above Barclays bank rate which is same as BOE base rate, I currently pay 5.9%

My LTV is 40% I think, house £150k and we borrowed 60k from what I seen fixed rate is worse than svr at mo doesn't even come close

I got a mortgage advisor coming soon and may put them off

dpc197

sjh5000 wrote: »

I have to renew my mortgage at the end of February, but I have only 90% LTV so my options are limited.

I think that I have two options. Firstly, move onto my current lender's SVR (6.94%) and hope that a good fixed price comes along before house prices drop to the point where my LTV means that I can't get any other deal. Secondly, take a fixed rate now, but possibly end up paying a higher rate than if I'd waited longer. What would people do in my situation, and why?

Current mortgage: Alliance and Leicester, 5.3% fixed until March 2009, then SVR after that (6.94%, at the moment).

Best fixed deal I can find: Brittania BS, 6.44% fixed for three years, no arrangement fee but a £200 valuation to pay for.

we are in EXACTLY the same boat (it's not you is it darling?)

currently A & L, deal finishes March, unsure whether to try get a rate now before neg equity hits me next March or wait til Feb/March and see whats available.

I've personally decided to wait for the following reasons:
- even though A & L havent reduced the SVR yet, i'm sure they will between now and march especially as there will more than likley be another base rate cut
- there are no trackers available to 90% LTV customers
- the fixed rate deals are really high (i'd be v.surprised if the A & L SVR is higher than 6.44% come next March, although I understand peoples preference for the security of a fixed)
- I'm hoping that as an existing customer they won't make too much effort with a revaluation and consequently let me on a reasonable fixed deal next march. if not, SVR it is.
-if i'm on an svr of 6-7% then, well, this is no more than the fixeds available to me now.
-worst case scenrio is SVRs go up and house prices keep coming down. cant see this happening though

hope this helps

sjh5000

I'm glad it's not just me in this situation. I keep thinking that going onto the SVR would be the best option - no arrangement fee, no hassle and probably a fairly similar rate to the fix that I'm on now. The fear of decreasing house prices is the only thing that makes me want to fix now.

sarahs999

I'm in the same boat, just different numbers. I had a three-part mortgage, whose fixed rates have come to an end at various points over the year. Final one finishes next month. I've benefitted from the first rate cut but not the second, yet, and I'm on the case looking for a new fixed rate for as long a term as possible. UNlike you I do have a very high LTV so there are some quite good deals available; my personal view is that although mortgage deals may come down a bit further over the next year, the mortgage companies will be fighting not to lose any more money by lowering the rates much more, and so over a long-term fix, the deals you can get now will look pretty good.

When I say 'now', I actually mean after Dec 1, which I think is when a few more companies will adjust their mortgages after the latest rate cut.

savemoney

I am leaving it to see what happens. I cancelled a FA coming to house I stick with a svr for now I am only very slightly better off for this due to owning 60% of the house. If a fixed or another attractive deals comes across I may opt for that but I would prefer one with out such high fees due to owning a large amount of the house

I think rates will lower even more

neil40

My fixed rate ends on Feb 28th(4.64%) but luckily i am onto a tracker .99% above base rate after that.But im worried long term when rates rise again and will definetely fix if a rate sub 5% is offered for 10 years as i still have big mortgage and at least i know what i will be paying -not sweating every month on th BOE rate decision.....Neil

savemoney

well its best to keep an eye on the market for time being no rush I think rates with drop a bit more yet, and fixed rates dont seem to have gone down much

sherer

i'm in the same boat my deal expires at the end of December and the SVR with A & L is 6.94 at the moment and not dropped at all since the 1.5% cut and i don't think the previous cut has gone on either.

Hopefully it will start to come down as LIBOR seems to be coming down too and then just sticking to the SVR might be the best option but I can tie in at a cheaper rate than the current SVR at present

Fliss_M

Glad I read all your responses, same boat again. Am on 5.59% till feb 09 but I took out a 3 year fixed on 95% plus cash back, so up untill nov I was thinking about 100 extra a month (mortgage is 110k) but fingers crossed with the svr coming down. But what are the chances of a fixed rate deal coming down to a similar level or am I gonna end up stuck on the srv rollacoaster?

savemoney

Rates quite possible go down next month. Its aid on news today they were thinking of lowering them to 2% but they felt it was too bigger shock for us http://news.bbc.co.uk/1/hi/business/7737089.stm