Abbey fixed or svr what to do????

littlestork

Hi There

Am hoping for some sound advice here. First of all we are not in the position to shop around due to the fact that we only now have one income.

We have to stay with Abbey :-( Our fixed rate is due to come to an end so the options are:

Do we go onto svr at 4.24%

or take two year fixed at 5.49%

there's so much conflicting advice around about interest rates, but as I said to my husband the Base Rate hasn't changed but banks fixed rates have over the last few weeks.

The difference between the two is 1.25% so is the svr likely to change over the next two years by this much?...... If it looks like it is then its looking like fixed.

Crystal ball time... Thanks in advance :rotfl:

surfprof

Hi

Am in exactly the same position. Current fixed rate 5.94% finishes in August.

Rang Abbey 2 days ago and was offered similar to you:

2 years at 5.49%
3 years at 5.99%

both with an up front fee of £125.

Like you, I'd like to have some time on the SVR at 4.24% as this would save me around £100 a month plus I don't like the up front fee.

But, like you, I'm mindful that Abbey and others have not followed the base rate cuts down and in fact have now started to put rates up again.
Remortgaging elsewhere is out of the question as our original LTV was 90% and no-one is offering this now at a decent rate.

So whether to book at 5.49% now or stick with the SVR and hope that they don't go up again so much that any future fixed offer is well above this. Conundrum or what?

dimbo61

Surfprof with a LTV of 90% PLUS I would take the longest fix you could get and 3 years at 5.99% is almost the same rate you are paying now ! fee of £125.
Overpay if you can over the next 3 years and you will have a much better LTV in 3 years. ( We HOPE )
LITTLESTORK you dont give your LTV but I would say take the longest fix you can get ( 5 years +) as this gives you security while your child/children are young ( pre school)
Only my opinion but you asked !