Mortgage finishing what to do

Gpd_3

I have a 5 year fixed rate with Bristol and West finishing end of this month, 37000 is endowment (oh) and the rest repayment about 35000, is it a good idea
to start another 5 year fixed or not ?. And also is it a good idea to increase the
repayment part to 45000 to take up the short fall in the endowment or take the
money that would take and invest is in a monthly saving scheme of some sort ??
thanks for any help Gary

Gpd_3

Is there anyone with any suggestions

Cheers Gary

MortgageMamma

Hi There
It is impossible to offer specific advice to this unless more is known about your circumstances. What I can say from my experience as a mortgage advisor is that 5 year fixed is a long time to stop on one rate and you could end up overpaying if rates dropped. that said if they increased significantly its a good shelter from that. You need to examine your own attitude to risk and see how you feel about fixing for such a long time, and ask yourself why you are attracted to such a long fixed period. There are plenty of good fixed products on the market on which you could fix for 2-3 years. My advice to you would be to consult a professional for a review of your mortgage and finances and go from there.

Good luck!

Gpd_3

Thanks for the reply The Bristol and west have offered a 5 year 4.99% fixed rate
no tie, is is that a good rate at the moment

cheers Gary

Little_Miss_Winner

Gary, it is compared to mine. Nationwide have offered me 5.19% fixed for 3 years. Or 4.79% fixed for 3 years - but with a £399 fee.

I havent got to decide till april when my current 4.39% fixed rate runs out, so am gonna start shopping around.

Regards
pot

martin1018

Hi,
I'm new to the forums but am in a similar situation to you,GPD.
My 5 year fixed rate with Bristol and West finishes at the end of next month. I've been shopping arround for a while and as a result of this site visited the mortgage brokers recommended by Martin, who I won't name but you can find all manner of links on the site. I set them what I thought were virtually impossible requirements, but within a day or so they had beaten what I had found on my own, and I'm now just waiting for it all to go through.
Whilst I had to pay the building society arrangement/booking fee, I'm now set with a five year fixed rate of 4.85%, with no legal fees, no early repayment charges, no overpayment charges, and a plan to overpay so as to finish paying off my mortgage in 3.3 years time (this includes part repayment to cover endowment losses and if the endowments actually beat their revised very poor figures it may be slightly sooner). And of course the brokers don't take a fee from me, although they do get some from the Building Society.
Give the mortgage brokers a try - you may be very surprised. And pleased!

Best wishes.

martin1018

Gary,

Regarding your latest item, the B&W 5 year fix with no tie-in, is that no penalties for early repayment? I was surprised at the high early repayment charges B&W impose compared with some. Try for no early repayment charges, especially over a 5 year term, then you can get out should rates fall dramatically - some hope - without having to pay the earth.
At the end of the day you just have to work out the various charges and any fees to find out what is best. A slightly higher interest rate but without a charge may still be better than a lower rate with a charge. Get the calculator out!

Regards.

Gpd_3

Thanks for the help Martin
I will give that a try maybe they could beat the B&W rate, i can see me
being in a position to pay anything of early so that is not such an issue

Cheers Gary