Advice needed on Mortgage

diable

Hi guys jusst need some help and advice on a mortgages as my Tracker deal has just ended. My mortgage went from £720 pcm to £530 but on a svr it is now £650.

What is the concensous of opinion, do I just stay on the svr and see what happens ie interest rates go down and banks start lending and wait for a decent deal or should I look for something now at a fixed rate? My LTV is at about 28 to 33% at the moment.

Any help, advice and friendly comments would be appreciated.

Thanks

beecher

I'm on the SVR and waiting for a 5 year fix at around 4%. I'm tempted by the HSBC 3.99% 5 year but the fee is £999 which is high as my mortgage is slightly under £40,000 so I'm not sure what to do at the moment. My LTV is around the same as yours. It is hard to know what to do!

Robert_Sterling_3

Both above posters can take a decision each month on whether or not the time has come to go for a fixed rate.

Here is my guess.

Inflation is expected to get higher next year and perhaps thereafter. Nobody knows how high or for how long inflation will be higher.

I would bide my time month by month and at some stage go for a suitble fixed rate.

There is usually a sum you can do, or ask here about, to see what the advantage of a fix would be if any.

The arrangement fee is one important factor and the duration of the fix is another and the outstanding balance is a third.

A high arrangement fee might be OK on a high outstanding balance but extortionate on a low outstanding balance e.g. £40,000.

beecher

I think that's what I'll do Robert (sorry if I'm hijacking the thread diable!) - take it month by month rather by jumping on the first 4% which appears

. When I think about it, the SVR might still come down a little bit so now's probably not the time to jump when interest rates are still on the way down, particularly for LTVs like diable's and mine.

diable

beecher wrote: »

I think that's what I'll do Robert (sorry if I'm hijacking the thread diable!) - take it month by month rather by jumping on the first 4% which appears

. When I think about it, the SVR might still come down a little bit so now's probably not the time to jump when interest rates are still on the way down, particularly for LTVs like diable's and mine.

No problems, that is my thinking as well. I don't believe in paying for a fee and if I had to I'd move from the Halifax as then at least I'd feel I am getting my moneys worth.

We have the budget coming up maybe a further reduction in the interest rate and the banks may start lending out money at favourable rates. Fingers crossed then and thanks for the replies guys.

beecher

I'm with the Halifax too so keeping an eye open here

https://www.halifax.co.uk/mortgages/existingcustomer_5yrfixed.asp

That 60% deal just appeared last week so I'm hoping it goes down in the next few months - Halifax have never been very good at giving better deals to people with low LTVs, but hopefully that's changing.

diable

beecher wrote: »

I'm with the Halifax too so keeping an eye open here

https://www.halifax.co.uk/mortgages/existingcustomer_5yrfixed.asp

That 60% deal just appeared last week so I'm hoping it goes down in the next few months - Halifax have never been very good at giving better deals to people with low LTVs, but hopefully that's changing.

I saw that over as well but if I am expected to pay a £999 fee than I will take my business somewhere else then at least I will feel like I have spent the money on something when I have bought the rights to use a different telephone number when contacting customer services :rolleyes: