Fixed or variable.

dori2o

My 2 yr fixed rate is up in May, and I'm thinking of remortgaging with the same BS (Chelsea).

My current deal is fixed at 5.39%, Chelsea are offering existing customers a new 5yr fixed rate of 5.49% with no fees, or a vaiable rate of 4.99% for 2 yrs before returning to the SVR of 5.79%.

I personally cannot see the SVR comming down much further, Chelsea have not passed on the full rate reductions and I don't think BOE rate will reduce much further anyway.

The other good thing about this is that Chelsea will not need a valuation of the property nor will they bother about bad credit as an existing customer. (2 defaults no CCJ's a few missed CC payments never missed a mortgage/loan payment)

So, should I take the 5yr fixed so I know for the next 5 years my intrest rates are not going to change for better or worse, or chancea 2 year variable and hope the intrest rate doesnot go through the roof in that time?

oilit

i have a similar situation, with nwb. they have pulled most of their trackers for existing customers. so i have a choice - svr or fixed. at the moment they offer a fixed for 2 yrs, which is about 4gbp a month more than the svr ! i have asked them to send me the paperwork on the basis by the time it arrives i will have 14 days to decide - and we will know the boe jan decision and i can make a decision then. I suspect not all b/s will track down all the way of the boe, and IMHO interest rates will rise again in 2010. so if you want financial security and have not intention of moving then fix - otherwise sit on svr for 6 months and see what happens!