Shall I sign up for a new fixed rate?

Leek73

My fixed rate mortgage with RBS ended last September and because of the drop in rates my mortgage cost went down nearly £200 which has been handy as both my husband and I have been made redundant in the last 12 months and I've had a baby.

I cannot switch to another lender because we've lost equity in the house so my question is.... should I sign up for a new fixed rate with RBS in case the interest rates shoot up and my mortgage costs escalate.

I've read that it is likely that interest rates will rise again but am aware that you can't always believe the scaremongering in the newspapers.

Any advice would be fab.

Cheers x

beecher2

Phone up the RBS and see what they're offering. You say you can't switch lender so there's no guarantee RBS will offer you anything. Try to overpay if at all possible, while you're in the SVR so as you're prepared when rates rise. No-one knows when it'll happen - anyone who tells you they do is merely guessing.

Also you could go onto the Debt Free Wannabee forum and post a Statement of Affairs to see where you could cut down on spending elsewhere to build up your equity, and be prepared for when rates do go up.

Leek73

Thank you for the advice. I did call RBS when I initially came off the fixed rate and they said that they would offer a new fixed rate deal. I'll call them again today and see if that still stands.

I'll post up a statement of affairs because it's frightening that we're in negative equity. Luckily I had a good redundancy payment which enabled me to clear my loans so the mortgage is the only debt we have.