When to come off the SVR?

Mathew

Having come off a fixed rate at 5.24% I have reverted to Abbey's SVR (4.69) which is saving me a few quid. They have given me options including fixing further for up to 2 years at 4.99 with a fee of approx £500.

I'm in two minds whether to stay as I am and use the extra cash to overpay or take that offer.

I'm worried that if I wait the BOE interest rates may go up and I'm sure the banks won't be as shy about putting thier rates up as they appear to be about bringing them down.

Grateful for any advice

pixiepie99

It's a gamble. If I were you I'd stay on the SVR and overpay as much as possible until we start hearing rumours that base rate is going up again. At the moment it sounds like it's going to continue to go down or at least stay the same for a good while yet.

feisty1

and all of you looking to rush to fixed when rates start to rise will be at the lender's mercy, higher arrangements fees, less incentives, lower LTV tiers etc

pixiepie99

Arrangement fees are already ridiculously high. Do you think they will go higher?

feisty1

never say never!

dimbo61

Why look at 2 year fixes !!
How much extra would it cost to take a 5/10 year fix
Do you change your car every 6 months ?
Think long term a mortgage is usually 25/30 years.
4.99% for a 2 year fix is poor

Cozworth806

Depends on your LTV. If it is lower than 60% then it would make sense to look at Skipton and their 4.79% 10 year fix.
Free valuation for a remortgage £895 application fee.

Mathew

Sorry, did not make that clear, that was the longest they would offer to fix. I would mych rather a longer fix and would settle for a 5-10 years under 5%

My LTV is around 80%, if I could bring this down to 75% it would increase the offers.

This was one of the reasons I thought of overpaying whilst at the SVR in an effort to get down to 75%.