Is it time to jump?

Vertigo1

Well I've been sitting patiently waiting to see what the market does but I'm now starting to wonder if it's time to jump.

My 5.29% fixed rate with Britannia ends on 4/1/09. I will then drop down to their current 4.99% SVR which will save me a bit of money.

I currently have two options - Britannia themselves are offering 4.69% fixed for three years with no fees at all and I also have the option of a 4.39% two year fixed deal with Abbey but with £1000 fees (which can be added to mortgage rather than paid up front).

I was waiting for fixed rate deals to fall nearer 4% but it's starting to look like this won't happen, and with most lenders now looking like they're going to enforce collars on their trackers I'm wondering if it's worth waiting any more for better deals or just going for one of the above?

If I were to jump then I'd almost be inclined to stick with Britannia rather than jump to Abbey as it would give me the security of a fixed rate for an extra year and I'd avoid the £1000 fees. The Abbey deal might save me a bit of money over the term but, as my mortgage is under £100k, there wouldn't be much in it.

Any advice or opinions?

koexelek

Seeing as your payments are going to go down whatever you do, you might want to consider staying on the Britannia SVR until something better comes along.

I am hoping that lenders will soon bring out some more competitive remortgage deals, rather than the dross most of them are currently offering.

While you are on Britannia SVR, you are a free agent, and can move your mortgage ( or renew with them) at any time if something good comes up.

skoda38

im with britannia on the + .85 above base. now 2.85%
ive had my eye on their 4.69 fix for 5yrs with no fees. ive tried some comparison sites and they come up close to the top, especially for existing customers.

big question is, will the fixed rates come down and how long should i hang on to + .85 (incase fixed rates go up??)

if they went to 4% i think id jump straight in.

p.s. i would give some thought to fixing for longer than 3 years. i think at least 5 or even 10

dunstonh

I was waiting for fixed rate deals to fall nearer 4% but it's starting to look like this won't happen

It wont drop much more even if interest rates do. However, there is still some scope for movement downwards on fixed deals.

Vertigo1

koexelek wrote: »

Seeing as your payments are going to go down whatever you do, you might want to consider staying on the Britannia SVR until something better comes along.

I am hoping that lenders will soon bring out some more competitive remortgage deals, rather than the dross most of them are currently offering.

While you are on Britannia SVR, you are a free agent, and can move your mortgage ( or renew with them) at any time if something good comes up.

Thanks for that.

My main worry is that interest rates won't drop any further and there won't be any better deals coming soon. If I wait too long, I'm worried I could miss the boat and the fixed rate deals could start going up. Am I worrying unnecessarily you reckon?

beecher

I'm in the same position - on SVR since yesterday. I'm happy to wait a while yet and see what deals come up. I'm hopeful of a 4% with minimal fees and would agree with skoda38 about looking for a 5 year deal rather than 3.

koexelek

Vertigo1 wrote: »

Thanks for that.

My main worry is that interest rates won't drop any further and there won't be any better deals coming soon. If I wait too long, I'm worried I could miss the boat and the fixed rate deals could start going up. Am I worrying unnecessarily you reckon?

It's difficult to know what to do for the best.

You make a good point there. Are they now as low as they are going to get ?

I'm clinging to the hope that better deals will come along. The first 1.5% effectively killed the remortgage market and left the lenders pulling their products and running for cover.
Even in a good year, there tend not to be too many good deals around at the end of a year, as by then most lenders have hit their lending targets and lost interest. At the end of last year, it was clear that most lenders did not really want to lend at all, unless it was an A1 case and they were forced to.

I hope that in the new year, with new targets to hit, and continual pressure from the government to lend, better deals will come along.
The lenders won't want too many people on SVR's either, as that will mean that the borrowers are in control, rather than them.