Advice- mortgage term ending ??? Ideas

tankie

Hi, myself and the misses are beating each other up over what to do.

we are currently with C&G at 6.75 due to end in September. we are on interest payment fixed rate. We owe 85k on value of 130k.

should we remortgage and will it work out cheaper? ie fees etc
or
should we just stick with same lender at new rate?


thanks for the help.

opinions4u

What rate will you be on from October?

If it's the 2.5% SVR at C&G I'd suggest sticking with this, but using the spare cash to overpay your mortgage and bring down the debt faster.

Take a look at www.moneyfacts.co.uk to work out what other deals are out there.

They won't beat 2.5% (which is effectively a contractual tracker at 2% above BofE base rate) but they may give you the security of a fix.

tankie

opinions4u wrote: »

What rate will you be on from October?

If it's the 2.5% SVR at C&G I'd suggest sticking with this, but using the spare cash to overpay your mortgage and bring down the debt faster.

Take a look at www.moneyfacts.co.uk to work out what other deals are out there.

They won't beat 2.5% (which is effectively a contractual tracker at 2% above BofE base rate) but they may give you the security of a fix.

yep thats the one, it sounds good but will i be able to straight away apply for a fixed if the base rate goes up??

opinions4u

tankie wrote: »

yep thats the one, it sounds good but will i be able to straight away apply for a fixed if the base rate goes up??

Yes, but I can't promise how good the fixed rates will be at the time it happens!

tankie

opinions4u wrote: »

Yes, but I can't promise how good the fixed rates will be at the time it happens!

ok in your opionion then would it be worthwhile as I was going to pay off more for a period until the rates start moving upwards, I notice that fixed term is 3.99 @ at the mo. At what stage should I consider changing to fixed term?

dimbo61

Going from 6.75% to 2.5% will mean a big drop in your mortgage payments.
Have you been able to pay the mortgage with no problems when the rate was 6.75% ?
Either save the difference into a regular saver Barclays 6% RS ( £250 a month max) or save into cash ISA,s
If you want and need security then consider the 3.99% deal ( how long?) as this will still be cheaper than what you are paying now GOOD LUCK