Take offer of fixed or wait

johnbhoy10

Hi folks-

At the start of July i got a bit jittery and booked a fixed rate with the RBS of 4.69% for £80000. I have about 2 weeks left to decide whether i take it up or not but now i'm not so sure. My current deal with YBS is fixed at 4.99% till end of Feb 2010. This was for £80000 (approx £77000 outstanding at the moment) and will charge a redemption of 3% for leaving them early (about £2300). My gut feeling is that i've being hasty with all the talk of bagging a good fixed rate at that time and just accept the loss of the fee of £299 and wait till start of December when i can shop about as most offers are usually valid for 3 months. I know it's my decision at the end of the day but any advice would be greatly appreciated (before my missus kills me!)

ps-the svr i would be jumping onto after my current deal ends is 4.99% (a touch on the high side me thinks!)

regards

Gorgeous_George

The difference between 4.69% and 4.99% is less than 50p per day (over 25 years).

Your question is 'Will I be able to get a mortgage for 5% or thereabouts in February 2010?'

I don't know. However, with an election just around the corner, I'd bet that such a deal would be available and I'd keep my ERC in my pocket. You must do what you think is best.

GG

dimbo61

Are you sure that your mortgage reverts to the YBS SVR of 4.99% ?
I am with YBS and my deal goes onto a tracker of 0.75% above BOE base rate ( but its got a collar of 3%)
I would wait until you dont have an ERC to pay
GOOD LUCK

johnbhoy10

Thanks George. Yeah that's where my thinking is heading! My LTV is right on the 60% mark (based on valuation done by RBS a couple of months) i'm inclined to leave the offer from RBS and just wait.

Dimbo-unfortunately yes! I'm on a 2 year fixed with them whic jumps onto the svr. I will double check my p/work but i'm positive that's the case