Fixed or Variable

jonnyd281

To Fix or Not to Fix that is the question. My mortgage deal ends on 31 Aug (BoE Base Rate+.49% Tracker £419/mth ), I have the option to go to the SVR of 4% (£557/mth) or fix for 5 years at 5.29% (£618/mth). Part of me says take the fixed rate, part of me says don't and drop onto the SVR. Anyone any thoughts?

opinions4u

How much do you owe?

What's your property worth?

What's the fee for the fix?

Is youur lender offering you anything else?

Could you remortgage? www.moneyfacts.co.uk can help you find alternative rates.

If it boils down to a choice of the two rates you mention, and the fee for the 5 year fix isn't excessive, then fix for 5 years.

jonnyd281

opinions4u wrote: »

How much do you owe?
£91,300
What's your property worth?
£125,000
What's the fee for the fix?
£199
Is youur lender offering you anything else?
2 years fixed at 4.29% which comes in at £567/mth or 10 years @ 5.99% £654/mth
Could you remortgage? www.moneyfacts.co.uk can help you find alternative rates.

If it boils down to a choice of the two rates you mention, and the fee for the 5 year fix isn't excessive, then fix for 5 years.

I don't want to remortgage at the moment since the house is on the market (the Missus has a new job) and my current lender has said I can port the mortgage to a new house once we have moved, so it boils down to whether or not to take the fixed rate deal or wait unitl we have moved then try for a new deal.

LeeSouthEast

Personally I'd take the 10 year fix I think.

dimbo61

Your house is on the market !!!
You will be looking at a new property at the same price NO ?
You will be stuck with your existing lender if you take ANY of the fixed rate deals on offer.
Sell your existing property and find out how much you can afford to borrow/ how much lenders will LEND TO YOU.
Go onto SVR and overpay as much as you can while also building up savings for fees,searches,solictors,stamp duty ETC.
DO NOT SIGN UP TO A NEW DEAL
Until you know how much you need to borrow

opinions4u

Got to agree with dimbo.

SVR.

Then shop around for the best deal when you move.