To fix or not to fix

Marclyd

Hi
I currently have a MOREgage with the Coventry Building Society. My fixed fate of 5.8% ends nowish. I phoned them and they told me that I could stay on the standard variable of 4.74% or I could fix my mortgage at 4.99% for 6 years but my loan (£25000) would stay on standard variable. Also if I switch my mortgage my loan will increase to 5% over the standard variable.
My LTV is a big fat zero so not much liklihood of that anyhoo!!
My question is should I fix or risk it and stay on standard variable?
Any advice will be welcome!

Cannon_Fodder

Toss a coin...

Seriously, no-one can tell if the recent reductions in Interest Rates (and another possible reduction this month) will lead to further reductions in Fixed Rates offered by lenders.

Some commentators think lenders are getting close to their margins, so may not reduce Fixed Rates much more.

Although, equally, they are quite keen to offer attractive Fixed Rates as their SVRs are so cheap at the moment that they want to entice people away from them.

At a simple level, I guess if you were happy enough, and afforded, Fixing at 5.8% - and had reasoned that fixing was a "peace of mind" thing - then Fixing at 4.99% is money in the bank, for 6 years.

Staying on SVR is currently money in the bank but could, in a year or so, no longer be money in the bank for a considerable period.

Use the savings you make between 5.8% and whatever % you decide on to overpay the mortgage/loan (as the terms to permit you) and you'll be in a better position the next time you have to choose.

Sooler

Depends on what you can afford.

If rates going above the fixed rate would cause problems - fix.

If you can afford rates to go higher, how much higher could you afford rates to go?

System

Marclyd wrote: »

Hi
I currently have a MOREgage with the Coventry Building Society. My fixed fate of 5.8% ends nowish. I phoned them and they told me that I could stay on the standard variable of 4.74% or I could fix my mortgage at 4.99% for 6 years but my loan (£25000) would stay on standard variable. Also if I switch my mortgage my loan will increase to 5% over the standard variable.
My LTV is a big fat zero so not much liklihood of that anyhoo!!
My question is should I fix or risk it and stay on standard variable?
Any advice will be welcome!

They offered you a 4.99 with NO deposit? You lucky whatname

beecher

Sounds like you're in negative equity so in a fortunate position to be offered a fix at all -plenty of lenders aren't doing so. I'd take it and overpay the loan as much as possible to get rid of it.

edit: is there a fee attached? If not, then that's an amazing deal - I'm only being offered 4.69% over 5 years with fees of £999 with my existing lender, and my LTV is 30%!

JTerry_2

Does anyone know if this is still being offered? Only I'm in a similar position & would love to snap up this deal next month when my Coventry deal begins to come to an end.