Fixed Rate is due to end soon, Help Needed!!

Rose2White_2

We are about to come to the end of our fixed rate of 4.65% and hoped that as the BOE base rate is now lower than it has been in years that our mortgage would go down & we would be able to get another fixed rate of the same amount or lower. The SV rate will be over 5% :eek: and so increases our outgoings.

The problem we have is not a common one, you see we have less than £45K owing and 12 years to pay it off, so don't qualify for most deals as we don't owe enough. Our LTV ratio is under 25% so offers should be about but as I said we don't owe enough???

Our credit history is good, and we have plenty of wages to cover more mortgage if we wanted, but are trying to cut down our outgoings to be 100% debt free.

Is there any 3-4% deals we can get without having to pay hundreds in fees. Our current lender will charge us £199 to leave or £299 to change from the SVR to a deal of any kind, both are more than I would like.

Small mortgages are not good when it comes to fees as the min amount is often a hugh % of the loan amount and there is less chance of actually saving anything at all by moving.

dimbo61

Right rose
If you want to be debt and mortgage free you need to make your money work for you and overpay your mortgage each month.
If you found a good fixed rate offset mortgage for say 5 or 10 years and borrowed there minmum amount say £60,000 and then paid £15,000 straight into the offset account and paid your mortgage gross ( ie not taking the offset money into account ) you would have a bigger mortgage payment each month but would in the long term save THOUSANDS OF POUNDS in interest.
You could be mortgage free in half the time if you also added to the offset pot.
Dont know if you can get 3-4% fixed but rates are coming down
GOOD LUCK

Rose2White_2

Thanks Dimbo

That all sounds very complicated even for me (someone who worked in Finance), but as I am unable to work at present due to long term ill health we don't have any spare money to increase our payments.

You see me being ill took £20K out of the family pot and with two teenagers (19 & 15) still at home & both in education, our finances are tight. We are also soon going to be even tighter as I can't foresee that I will continue to recieve all my benefits, so not only are we trying to live below our means, but we are trying to get debt free as well as live below our new expected means.

We are down sizing our car, not replacing the broken dishwasher at the moment, and taking the trailer tent nowhere until things improve. Hubby has no overtime and maybe even a pay cut to come or worse still no job, so the last thing we want to do is increase our outgoings or liabilities.

Now you can see why we are after a good fixed rate without added costs and now should be the time to get one!!!

Regards
Rose