to change or not to change

eharkin1

OK, im looking for some peoples views (not advice, as i know you cant) on what you would do in my shoes so to speak.

My hubby and i have just come off a fixed rate of 5.08 fixed rate with nationwide in January this year. we are now sitting on their svr of 2.5%.

I panicked yesterday when i heard this was changing to 3.99% but have since come to the conclusion that it wont affect me, am i right?

Anyway we have 18yrs left on mortgage of £56000 but would like to borrow £5000 more when we remortgage. Our house is worth around £110000.

I have held off fixing or changing rate as wanted to stay on such a low rate for as long as possible. Im now thinking that maybe its tme to start looking for a new deal before they all die off.

I have alway had a fixed rate which has always worked well for me but now im wondering wether to go for a tracker/offset (i have savings) or whatever would be a good deal.

What deals are out there? comparison sites are sooo confusing and through this forum i have always been able to find a great deal through other peoples canny skills of tracking them down.

I guess my biggest fear is that as ive only been on the housing ladder for 6 years i have never experienced interest rates higher than 5.08% and know i could never afford 11% upwards like 20 odd years ago. (i dont know,could this ever happen again??)

Any help much appreciated.

nw_man

eharkin1 wrote: »

(i dont know,could this ever happen again??)

.

Oh hell yeah.... have you seen the state we are in !?? :mad:

happybroker

you sound like rising interest rates could be a worry for you, if that's the case then fixed rates take away that uncertainty.

base is very, very low and let's face it there isn't really much scope for further reductions but theoretically the sky is the limit for increases though I don't read too much from analysts about it going completely through the roof (but then again I didn't read too much about it going this low either!).

Fixed rates have been relatively steady recently but with the market in such turmoil it is going to be difficult to say exactly when the right time to jump on a low rate is.

You have a nice low loan to value and as a result will qualify for the better deals out there.

If you are particularly unsure it may be worth sitting down with a quality adviser and working through your options, once you have some numbers to play with it will all seem rather more "real" and this should help you make a more informed decision.