Poll & advices from all you experts out there!

BeachLover_2

This is only my 2nd post, so please go gentle on me!

Back in August when my Nationwide fixed rate came to an end I applied for a Post Office (now Bank of Ireland) 5 year fixed rate at 4.65% with a £399 fee, which I thought was a pretty good deal at the time. As the offer was guaranteed for 6 months I stayed on the Nationwide standard variable rate & am making a saving of £186 per month from my previous fixed rate with them.
The offer from the Post office is about to expire & I am in a dilema - do I go with the Post Office or do I stay on my Nationwide SVR for the forseeable future & hope the rates don't rise to steeply
I have the £186 per month buffer if rates do rise, but equally don't want to be in the position of losing this good rate & having to pay a higher fee if I need to fix at a later date.
What would you do if you were in this position?
Many thanks for all advices & opinions!

BeachLover_2

Anybody???!!!

Joe_Bloggs

Check out the latest Nationwide rates and decide for yourself.
J_B.

Thrugelmir

Consider using the £186 saving you are making to pay down the mortgage.

Dan_1976

I would take the fixed rate, but then I like the security of fixed rates. I do believe over a 5 year period you will probably win a few years and lose a few!

beecher2

What's your LTV?

It really depends on your attitude to risk, and how able you are to absorb interest rate rises. Also how much you're overpaying at the moment on your reduced rate. Personally I'd take the 5 year fix as it looks like a good deal to me - I am on the same rate at the moment as I didn't want to stay on the SVR for long

Dan_1976

Nationwide used to allow you to pay £500 a month off without penalties and 2 holiday periods of up to 12 months during the life of the mortgage. If they still offer that then you get good features to.

gallygirl

How much do you owe? What are your current & new monthly payments?

What is your LTV - would you be able to get a good deal elsewhere if/when rates start to rise?

The rate you have been offered is not bad with a low fee - most decent rates have massive fees so you need to consider this also.

jamesperrett

I would be tempted to not panic and carry on over paying the current mortgage. I'm betting on rates not rising drastically for quite a while - whether you agree with this or not is your choice.

James.

BeachLover_2

Thanks for all your replies

Our house has been valued at around £200,000 & the amount to borrow is £110,000 give or take a few £'s either way!

I'm keen to take the fixed rate as I'm not a gambler and like the idea of knowing we'll be covered if & when rates rise, but my husband says we should stay as we are & keep saving the £186 a month (incidentally we will still be making a saving if we go for the fixed rate of £60 per month, compared to what we were used to paying on our old fixed rate)

The fee on the Post Office fixed rate should've been £599, but we got a discount of £200 as hubbie works for Royal Mail.

I just wish I had a crystal ball & knew what the rates were going to do - I've read articles where 'experts' are saying rates will stay low for the next 3-5 years & other articles saying they believe rates will rise steeply in the near future!

We're not totally 'up the creek' if rates rise, but equally it would be difficult if rates went up dramatically and I know that ultimately its up to us, but I appreciate others input as I just don't have a clue what to do!

Thanks

BeachLover_2

Still umming & awwing over what to do , but does anyone know if I don't proceed with the fixed rate now with the Post Office, will I be able to re-apply in say 6 months time if/when base rates start to creep up?

Incidentally, the fixed rate offer included free valuations & legal work so I checked with the Post Office & the legal team a couple of weeks ago & they both said that if I didn't proceed with this offer I wouldn't owe them any money for work already carried out - Bonus!