1.75 to 4.35 What shall I do?

Headinmyhands

I would be happy to receive words of wisdom on the following.

I currently have a tracker of .75 above rate and have an offer waiting to be returned for a 5yr fxed at 4.35, resulting in a rise of an extra £200.00 a month.
Am I mental to take this step at the moment? Now with reports that rates may not rise for 3 years I am totally
Has anybody else taken steps like this to give them peace of mind?

kriss_boy

Join the club...

It would have to be a fix of around 3.5% to tempt me as I reckon the rate will remain long enough to fix it 9/12months down the line at a comparable level.

yelf

I'd say your bloody insane!!!!! Honestly, think of the incurred costs you will have. Stick on the SVR until it gets close to the propsoed fixed and then chnage rates, else you will be pouring money down the drain.

Some muppets have said in newspapers "Fix now" wtc. ignore them. The BOE itself said it can not see any increase for a year - it only just increases its Quantitative Easing, and so if any interets hikes where forseeable in the near future they would never have done that.

Headinmyhands

yelf wrote: »

I'd say your bloody insane!!!!! Honestly, think of the incurred costs you will have. Stick on the SVR until it gets close to the propsoed fixed and then chnage rates, else you will be pouring money down the drain.

Some muppets have said in newspapers "Fix now" wtc. ignore them. The BOE itself said it can not see any increase for a year - it only just increases its Quantitative Easing, and so if any interets hikes where forseeable in the near future they would never have done that.

I don't have to pay any fees at all apart from a £250 exit fee from current lender.
Yes, you right, I'm in a panic after all the reports to 'fix now as the banks are putting up their rates'

ultramagnetic_commuter

What's the 5 year fixed at 4.35? Is it some special deal you've been offered because I haven't seen anything nearly as good as that for a 5 year fix!

Headinmyhands

ultramagnetic_commuter wrote: »

What's the 5 year fixed at 4.35? Is it some special deal you've been offered because I haven't seen anything nearly as good as that for a 5 year fix!

The rate was on offer back in May and customers had up to 7 months to take up the offer.

confused31_2

If you think rates are going to go up take it, if you dont think they are dont, its all about timing, you will be lucky to get a 5 year fixed anywhere near the rate you have been offered now, as most of them are well over 5%.

But with a tracker rate at 0.75 percent i would be tempted to hang on in there, especially if you have a lot of equity as you should be able to pick up a deal later.

I wouldnt like to be in your shoes making this decision as it all about whether interest rates are going to go up or not, and i dont think anyone knows the answer to that.

If they go up as quick as what they came down, there would be a lot of people in trouble, but then i hear reports of these rates statying low for the next few years.

who knows???

getmore4less

Work out where you will be if you overpay as if the rate was the fix.(don't forget the fees).

The last one I calculated on here was for a 3y fix where the rate stayed low for 18m(1/2 the time) then went up for the next 18m

To be worse of the tracker rate would have had to go over 10%.

Give me more details(loan amount) and I will do a calc for you.

Mrs_Bumble

Headinmyhands wrote: »

I would be happy to receive words of wisdom on the following.

I currently have a tracker of .75 above rate and have an offer waiting to be returned for a 5yr fxed at 4.35, resulting in a rise of an extra £200.00 a month.
Am I mental to take this step at the moment? Now with reports that rates may not rise for 3 years I am totally
Has anybody else taken steps like this to give them peace of mind?

If your tracker is 0.75% above Bank of England Base Rate isn't your current rate 1.25%?

dfh

What you need to think is affordibility.If you can afford the increased payments and want peace of mind then go for it.Remember rates will rise eventually and you may then not find such a cheap rate.

Headinmyhands

Mrs_Bumble wrote: »

If your tracker is 0.75% above Bank of England Base Rate isn't your current rate 1.25%?

Yep! Saw my error after posting.

Thanks for all comments so far.