3 year fixed come to an end! What to do next?

jordsburnett

My current fixed rate has come to an end I will be saving approx £300 a month, should I keep putting this towards my mortgage(I still have 22 years left) or should I save it, for an alternetive investment. I know the saving will not last forever but my mortgage was manageable beforehand and i know i will be able to affod it goes back up.

Any advice guys?

dimbo61

You have given us so little information to go on !
What is the interest rate you now go onto and is it a tracker or your lenders SVR.
What is your LTV and what do you want?
fixed,tracker,offset ETC
I keep on telling people to take a long term fix and overpay as much as possible but I want rid of my mortgage ASAP and to pay as little interest as I can.
If you are now saving £300 a month I am guessing its not a small mortgage so if you have a good LTV 60%?
there are a good number of deals at 4/4.5% for 5 year fixes
Check out what your existing lender has to offer first just give them a call. GOOD LUCK

johncolescarr

Yes, more info needed, but in general:
Overpaying debts with savings especially at the moment is a very good thing to do. Historically, the equivalent savings by overpaying your mortgage generally out perform any interest you'll earn in savings, with some execptions.
As dimbo says, a long fixed rate deal is generally regarded as prudent at the moment as long as you have the equity to get a good deal. The reasoning behind this is that the interest rates are likely to go up in the mid to long term. By long term fix, this is generally regarded as 5-10 years. its a bit of a gamble really as who knows where interest rates will go, its just a prediction, but the beauty of it is that is protects you against interest rate rises and prevents not being able to pay your mortgage.

naijapower

It is best to overpay each month if yoru lender allows this without any fee etc. Some prefer you to save the money and then make one lump sum overpayment each year.
Overpayment is a better option than saving as you may tempted to divert the funds to other purpose.
Despite the criticisms of Northern Rock, one good feature of some of their products was the ability to over any sum every months...no issues, no long thing. It was really flexible