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getting cold feet about remortgage deal, should i jump ship?
darkcamel
Posts: 17 Forumite
Hi everyone - need some advice
Im currently on SVR (paying over the odds!) as my fixed ended last month. I narrowed the deals down to 2 - a lifetime tracker at 2.27 above BR% (locked in for 2 years) and a 3 year fixed at 4.29%. Now I chose the tracker as I thought I could put the £200 saving into a pension as Im a late starter (remortgage due to complete end of next week), after all the reports last year saying rates were likely to be on hold for quite some time, possibly at least throughout 2010, but now it looks like theres more inflationary pressure and GDP rise, and they may go up earlier and by more. My equity is about 40%. if rates only rise to 2% end of year, I will do quite well, but if go to 3% this year, and higher next, I will lose out. if they went above 6-7% Id have to rent a room or go interest only.
if i jump now i have to forfeit the £1k arrangement fee with the arranged mortgage and have to pay a second £1k. Business is a bit down, but main client contract up for renewal next year, uncertain times.. My adviser has recommended sticking with the tracker.
Should I jump ship to the 3 year fixed?
Views welcome!!
DC
Im currently on SVR (paying over the odds!) as my fixed ended last month. I narrowed the deals down to 2 - a lifetime tracker at 2.27 above BR% (locked in for 2 years) and a 3 year fixed at 4.29%. Now I chose the tracker as I thought I could put the £200 saving into a pension as Im a late starter (remortgage due to complete end of next week), after all the reports last year saying rates were likely to be on hold for quite some time, possibly at least throughout 2010, but now it looks like theres more inflationary pressure and GDP rise, and they may go up earlier and by more. My equity is about 40%. if rates only rise to 2% end of year, I will do quite well, but if go to 3% this year, and higher next, I will lose out. if they went above 6-7% Id have to rent a room or go interest only.
if i jump now i have to forfeit the £1k arrangement fee with the arranged mortgage and have to pay a second £1k. Business is a bit down, but main client contract up for renewal next year, uncertain times.. My adviser has recommended sticking with the tracker.
Should I jump ship to the 3 year fixed?
Views welcome!!
DC
0
Comments
-
Stick the £2k in a savings account.
Even if rates shoot up that should cushion the blow until you can re-mortgage in two years.
If they don't, you've £2k, plus interest, in the bank to overpay with and improve your LTV further.0
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