How to take advantage of lower rates?

SPGee

Hi, I'm looking for advice re arranging the best deal when my Fixed Term mortage of 5.4% (Halifix) ends in June 2009, some of the options I'm thinking I might have are:
a) go with Halifax's new lower Fixed 4.something% (this is very easy to arrange and I've spoken to Halifax about this who advised me to get back in touch in a couple of months time)
b) Move to such as Halifax's Standard Variable Rate of 3.something% when my Fixed Term ends
c) Try to move NOW i.e. don't wait until end of June 2009 - but I suspect I'd have to pay a large fee if I try to do anything before my terms ends

In simple terms I want to do the most sensible thing NOW rather than waiting until June

Steve:think:

beecher

I wouldn't try gtting out of your fix now as you're likely to have to pay an Early Repayment Charge. Check your documentation though to see how much it would be.

You could book a fix with Halifax at the moment unless they've changed how they deal with this since the end of last year. They let me book a rate 3 months before mine ended, and others have stated that they have let them do so under the proviso that they can change to a lower rate if that comes up.

SVR is 3.5% at the moment - that's a good option if you have a low LTV, but if you're borderline 60% , 75% or 85% then that might mean you're not eligible for some of their deals by the time you want one.

Keep an eye on here

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

to see what their deals are.

Obviously you also have the option of going elsewhere and remortgaging.

SPGee

Thanks for the prompt reply.
Are there any considered opinion on the 'risk' of going with the current low 3.5% SVR (Halifax) as oppossed to the current Fixed Term they're offering (4.something%)? For instance, what's the likelihood of the SRV rising above say 4.5% within the next year or so? If I took their SRV and in a few months it rose above their offered Fixed Rates, would it be relatively easy to change to their Fixed Rate?

beecher

The 'risk' is going to be higher for those with high LTVs. No-one knows what the SVR will be within the next year or so. I certainly don't want to be on it long term as it only has one way to go - up. I'm waiting for a 5 year fix of 4% or so with low fees - my LTV is only 30% so I'm able to do so without any great risk. Who knows if it'll turn up or not but I'd want to be fixed again by the late summer at the latest.

You can jump onto a fixed rate at any point when you're on the SVR.

Robert_Sterling_3

This is an opinion and not fact:-
In my opinion the low interest rates will not be around for long. Printing money will cause inflation. Getting a low rate fix for five or even ten years would be a gamble I would take if I had a mortgage.

dimbo61

Hi spgee
You need to read what happens to your mortgage after the fix ends
You may well go onto the Halifax SVR or some sort of tracker deal
If you need security then look around to see what kind of deal you want.
HSBC and abbey are now doing 5 year fixed deals at 3.99/3.95% 60% LTV fee £995
others may also come onto the Market soon

SPGee

Many thanks again for the responses - I only joined this forum today!
Remind me how to calculate the LTV?

Forever_Red

SPGee wrote: »

Many thanks again for the responses - I only joined this forum today!
Remind me how to calculate the LTV?

Try here

http://www.key-mortgage-secrets-revealed.com/loan-to-value-calculator.html

Alan

dimbo61

How much is your house worth say £100,000
How much is mortgage outstanding £60,000
LTV in this example 60%

SPGee

I contacted Halifax yesterday to ask about moving to the currently advertised 4.44% 3yr Fixed Rate. As my current fixed rate finishes at the end of June 2009 they told me I needed to wait a couple of months before contacting them to arrange this, else wait for them to phone me.
I'm concerned though that between now and then these rates will increase - do I have no option other than to wait until closer to my current expiry date?