Remortage or stay on SVR?

mjg09

Hi all,

This is my first post so be gentle!

My mortgage is currently with the Abbey on their SVR of 4.24% (owe about £104k) and I reckon we've got between 60-75 LTV. I like the idea of a 5 year fixed deal so my question is this: do you think I should stay on the SVR for a while and see if fixed rates come down a bit or do you think I should sign up to a 5 year fixed with the Natwest at 4.99% with a £299 fee? I have contacted the Abbey to see if they will do anything but the best they can offer is something like 5.59% with a £995 fee.

I know my question is like asking for a crystal ball but I'd be interested in your opinions especially with the swap rates dropping all the time.

Thanks in advance!

Matt.

koexelek

Bit unfortunate that Abbey still have a high SVR, when the likes of Nationwide and C&G are at 2.5%.
With those two, going on to their svr is a virtual no brainer

I think the Natwest deal looks good value. You'll be paying more in the short term, but I am pretty sure rates will start going up again next year.

mjg09

Thanks for the reply!

I've just checked the Natwest website and their 5 year fixed deal has gone up to 5.59% with a £799 fee! I've already received the paperwork for the 4.99% deal with Natwest so do you think they will still honour it?

Thanks again!

Jacka87

Nat west & RBS are same bank really. I was in similar position to you, looking to remortgage onto 5yr but the rbs rates went up twice and ended up the same as you are quoting with a high fee.

I looked around the other day and found the cheapest 5yr to be £499 with the co-op but total fees of £1270

Chelsea & Leeds BS both have rates 0f 5.1% but different fees.

I did a numbers crunch and they all will cost me just over £600 pcm, theres less than £3 a difference when you consider the fees divided by the fixed term.

Though interestingly I found HSBC have a mortgage of 5.39% but with NO FEES which means they are still within that £3 a month difference as well.

Moral is, work out the costs with fees and if you cant get the Natwest then I would say that HSBC is a good option along with CO-OP etc.Though I hope you can get the NatWest deal!!!

PS the fixed rates in my opinion should come down but think the banks are going to milk them at a high rate for a while if they can!

amcdon4117

Apologies if this is not the right way to join in, but this is my first time.

As with our friend who initiated this string, I am unsure as to proceed with mortgage options. Our 2yr fixed ends soon and we automatically shopped for another and secured 4.59% for 5yr.
However, the mortgage company that we are leaving pointed out that the default SVR would be only 1.6% which would represent an enormous difference (approx. £10k p.a) in payments for us. Should we stay with the security of a fixed and potentially overpay or save (and stash the difference) with the SVR ready for a hike in the SVR.

I know that crystal ball is needed to predict the worst case scenario, but any suggestions?

dimbo61

Hi amcdon4117
Well I was going to use "whatsthecost" to try and work out the size of your mortgage ?
If you can save £10k in interest in one year from 4.59% to 1.6% I guess its not a small mortgage!
Why did you take out a 2 year fix last time security!
I am in the middle of a 5 year fix and happy with my decision no matter what the current low BOE rate of 0.5%
Most 5 year deals are now 4.99/5% + with fees( did you pay a fee for the 4.59% deal ?)
Can you delay the deal for up to six months ????
If you have a steady income then a long term fix makes sense

mjg09

Thanks for all the replies! I think I'll complete the Natwest paperwork and get it sent off straight away. I may lose a little at first but should reap the rewards when interest rates start to go up. Fingers crossed Natwest honour their deal! I'll post back when I know for sure.

Cheers,

Matt.