Shall i revert to SVR or fix

sj1147

Hi I am with The Derbyshire, my current fixed rate expire at the end of march. They have offered me to Fix at 4.6% with no charges, or revert to SVR of 3.5% I forgot to ask if i chose SVR then decided to fix would i be charged Any advice welcome Thanks

Robert_Sterling_3

We can't know in advance which one will turn out to be the better choice in the end. Your guess is as good as mine. Your call.

maggie21

How long is the fixed rate for? If it's more than 3 years, I would take it.

If you knew what would happen in the future you wouldn't have a mortgage!!

sj1147

its a 2yr fixed rate

maggie21

Personally I wouldn't bother. I'd see if they have any other longer term fixed rates, even if you do have to pay a fee, it may work out cheaper in the long run and most importantly it would give you peace of mind.

IMO what goes down must come back up again. I had a look at historical BOE rates, and off the top of my head, from 1975ish until about 1995ish rates were more often than not above 10%. We are at 1%, surely they have to make their money back?

When we finally sell and move, I'm going for a 10 year fixed rate, it's still a lot cheaper than any other mortgage I have ever had so happy to 'pay more'.

I think people are just getting greedy with the interest rates, no one has had one this low before, so surely no one is being 'ripped off'.

udydudy

I would say ask them for a longer term fixed say 5 years or 10 years and if they offer that interest rate then take it!!. Else stay on SVR and wait a few months and hope a cheaper fix will be available.

My view is that by June the credit markets should ease and we should have longer fixes available without the need for 40% equity that most are asking for now. though the rates for these may still be around 4.5% albiet for longer terms. Even though the interest rates may go down as low as 0.25% - 0.5% :eek: I do not expect much downside on the fixed rates.

But then this is just my opinion, my last decision was on the ball(-0.29 below base rate in Mid 2007) but past performance need not be an gaurantee for future performance.:A

sj1147

Thanks everyone, there is a 5yr fixed at 5.29, so maybe i consider that, your help has been appreciated:beer:

herbiesjp

YOu should also consider the cost of waiting

By this I mean you need to look at the property value and the mortgage amount needed and what that equates to in terms of loan to value.

Would waiting on SVR, mean that your LTV increases (as the property value decreases)?


Would that increase in LTV now mean that you are no longer able to apply for the rates offered to you - now being in a higher LTV bracket you would be offered higher interest rates?

Is your current lender then still offering you the best deal that you can get on the market?

froggy27_2

i've written also in another thread but interested to have all your opinions.. i have paperwork for a 5yr fixed rate at 4.69% but also noticed (later on ..) that they have a 10yr fixed at 4.89%.. i have 14 days to return form .. what do you all think? i never thought of a 10 yrs fixed but maybe that's a good idea these days!! i've checked and it 's portable if we move...
thanks for your advice as always...