Fixed rate ending - what next?

Legacy_user

The fixed rate period of my mortgage is coming to an end and my current lender is giving me 3 options.

1. 5.59% fixed for 2 years with £100 arrangement fee

2. 5.79% fixed for 5 years with £100 fee

3. 6.49% discounted to 4.89% variable for 2 years with £100 fee.

What does popular opinion suggest is the best course of action? Pick one of those or seek another deal with a different lender

How much does it generally cost to move lender?

payless

A swap might might shave a little off these-
but wtch out for fees ( even free swaps usually end up with some fees)

As for which is type is best - thats down to personal circumstances , need for security and the willingness /risk your are prepared to take on rising rates  

ccprincess

I am new to this forum so hope I am requesting advice in the correct place.

Our fixed rate mortgage is due to end in October

We have only 5 years remaining before retirement.
We owe £27,000 and have a possible £13,000 that we could use towards paying off mortgage,
Existing lender will not let us take a fixed rate over the remaining 5 years.

Advice please
do we go for an off set mortgage?
Tracker mortgage?
Use our £13,000 to reduce mortgage? (we still have a small reserve fund)
or take out the £27,000 mortgage somewhere else

Thanks

Kiernan809

Don't make the assumption that your current lender will offer you the best deal.

Contact a no fee, whole of market broker and see what they can find for you.

herbiesjp

ccprincess wrote: »

I am new to this forum so hope I am requesting advice in the correct place.

Our fixed rate mortgage is due to end in October

We have only 5 years remaining before retirement.
We owe £27,000 and have a possible £13,000 that we could use towards paying off mortgage,
Existing lender will not let us take a fixed rate over the remaining 5 years.

Advice please
do we go for an off set mortgage?
Tracker mortgage?
Use our £13,000 to reduce mortgage? (we still have a small reserve fund)
or take out the £27,000 mortgage somewhere else

Thanks

You can only make the decision once you have done the research.

See what your current lender will offer, as that will always be your first option.

Then shop around and see what else is on the market.

Once you have done that you will be able to see if it is better off staying put or moving to a different lender, after taking into account set up and exit fees. For that amount of loan, you would need to fin fee free re-mortgage deals to make this worth while I believe.

pollyanna24

Just wondered which bank you are with OP as the 5.59% one seems really good with only £100 fee.

payless

likely as the thread been reopened after 3 years!

mountainchrisriver

Brings back memories eh.... :rotfl:

[Deleted User]

Ohhh I got all excited for nothing

reformedEffortMaker_2

amazing how things have changed...

20vt-rs

What sorts of rates are avaiable now then? I thought we were at a similar level again, albeit with higher fees....