Fixed Rate about to end.... what next???

carlykins

My existing fixed rate comes to an end very soon. I'm currently with Halifax. I have an outstanding mortgage of £115,000 (house value approx £280,000) and I want to repay over 14 years or less. I have usually gone with fixed rates in the past and am really confused about what to do next .... fixed rate, tracker, SVR ...... any advice gratefully received.

dimbo61

What does your mortgage revert to after the fixed rate ends ?
The SVR which is 3.5% with Halifax at the moment !
Will you be paying less each month if you do NOTHING ?
and just go onto the SVR.
Might be an Idea to go onto the SVR and overpay as much as you can afford because savings rates are poor at the moment.
Build up an emergency fund of 3/6 months of income in cash ISA,s just in case.

carlykins

Thanks Dimbo. I have been thinking of doing as you suggest but am a bit worried that if rates increase then it is likely that any deals will also increase. Guess I just worry about making the wrong choices. A crystal ball would be great!!!

mbailey

carlykins wrote: »

Thanks Dimbo. I have been thinking of doing as you suggest but am a bit worried that if rates increase then it is likely that any deals will also increase. Guess I just worry about making the wrong choices. A crystal ball would be great!!!

If you find the crystal ball, can you le me borrow it!

I'm in a similar situation as you, although not quite a good SVR as you, but I am still just under 60% LTV.

I am looking at the Woolwich 2yr fixed at 3.89% or the First Direct at 3.69% as options at the moment.

dimbo61

If you do go for a fixed deal look at least 3 and if possible 5 years
Long term security and overpay as well !
Good luck

pault123

There are some great lifetime trackers with woolwich and ing.

Ing don't have an early repayment charge so your not tied in. Rate is 2.44% above base rate on a 75% LTV, so even better for 60%

mbailey

dimbo61 wrote: »

If you do go for a fixed deal look at least 3 and if possible 5 years
Long term security and overpay as well !
Good luck

First Direct
2yr fixed 3.69%
3yr fixed 4.39%

Is the 0.7% saving in interest rate (£2230 over 2years for me on £165k) worth taking as opposed to the extra 1 yr of security on the fixed rate.

or then a Abbey 5yr fixed at 4.69% (£3300 of saving over 2 years)

I am planning on keeping my payments the same as they are today, so any additional money will be saved and put into the mortgage if allowed, or into savings.

I guess it comes down to do I take the risk (2yr fixed) or do I allow the banks to take the risk (5yr fixed)...

Yes I know, only I can answer that question!

dimbo61

All I can say is that rates have never been this low and the only way is UP!
Maybe not this year or next but the more you overpay now and reduce your debts the less you will worry about rates in the future.

sammyjammy

Look on the halifax site for existing customers, there are some good deals and some are fee free which worked out better for me as I have a smallish mortgage.