Cant go to fixed rate until i pay unsecured loan?

kellyloubeee

Hi All

After my previous post i spoke to my mortgage provider and they have said that at the end of March my mortgage will move to a tracker 1.99% above BOE base rate. I asked whether they had any fixed rate offers avaliable but they said until i pay my £12k unsecured loan with them i have to stay on the tracker. At the moment this seems ok as teh BOE base rate is so low but can anyone tell me how often the base rate gets reviewed, do you think this is a wise choice.Could i pay my £12k loan of with a short term loan to get rid of it? I have no idea and would appreciate any help?

Kelly

beecher2

I don't think it is a good idea to get a short term loan to pay off a loan. How would you pay it back?

Your only real option is to save as much as you can when you go onto the tracker and get the loan paid off. Post a Statement of Affairs if you haven't already done so and see how much you can put aside each month. Have you worked out what your payments will go down to in April?

You're gambling that rates don't shoot up over the next wee while, but many people think they'll stay low for a while.

poppy10_2

kellyloubeee wrote: »

At the moment this seems ok as teh BOE base rate is so low but can anyone tell me how often the base rate gets reviewed

The BoE base rate gets reviews every month. Currently it is at an all-time low (0.5) - long term average is more than ten times that. Be careful, if base rates return to 6% you will be paying 7.99% on your mortgage - could you afford that?