Advice Please - Fixed vs SVR

cheery_emma

Hi,

Mine and my husbands mortgage needs renewing in a couple of months. We bought our first house together 2 years ago, so this is our first ever experience of renewing a mortgage.

After speaking to our current lender (Halifax) they've told us that if we go onto the SVR the rate is currently about half of the fixed rate we are paying at the moment.

We are currently on a fixed rate and (apart from the cost) I like it. I like the security of knowing how much money we need in our account each month to cover the costs.

They say that they can't tell us what they could offer us as another fixed rate deal because they don't know what they will be offering in a few months when our contract ends. Is this true? Because from Martins advice, we're supposed to be looking at other deals about 3-6 months before the contract ends, so if other lenders know, why don't they?

So, is it worth hassling them for a fixed rate deal, searching for other fixed rate deals, or hope for the best with the SVR?

I try to follow the interest rates in the news, but it gives me a headache as I don't quite understand it all. And apologies if someone else has asked this question in another thread, I did a search, but all the jargon makes my brain short circuit.

Thanks in advance.

Emma

beecher

When exactly does your deal come to an end? Halifax allow you to book a deal 3 months in advance of the old one coming to an end - or at least they did at the end of last year.

What's your outstanding mortgage, and the value of your property? If you bought without much of a deposit you may be unable to remortgage elswhere. You need an LTV (Loan to Value) of at least 90% to get a deal elsewhere. Halifax may still give you a deal though.

Keep an eye on

http://www.halifax.co.uk/mortgages/newdeal.asp

to see what details are available with them.

It depends on your LTV whether you sit on the SVR waiting for a better deal than is available now (which may or may not turn up). If you post a bit more information, I'm sure someone can help.