FT due to end but planning a move

earthdancer

Hi could you give me some advice please?

Our fixed rate deal with Nationwide (4.88% 3yr fixed capital repayment) is due to end at the end of May. We currently owe around £68K on our mortgage and the house is worth about £155K. I can't decide if we would be better off by taking out another fixed rate deal with Nationwide or reverting to their SVR which is very low at the moment.

We are budgeting very strictly at the moment in order to pay off other outstanding debts more quickly and the comfort of knowing how much our mortgage payment is going to be each month was a factor in us fixing three years ago. However, we are looking to put our house on the market this year, and I'm not sure if that should have a bearing on our decision? A new property (larger) is likely to cost us between £230K and £250k.

If we revert to the SVR rate, assuming it doesn't rise dramatically over the next year, are we likely to have lower repayments that would free up extra cash to throw at our other debts? Sorry if this is a dumb question but we've always had fixed rate deals so I'm not sure how SVR works other than it going up and down in line with the bank base rate.

Thanks in advance for any advice