Re-mortgage advice!

lynseyb29

Hello,

Our fixed rate is due to end in may, we will have £77,000 against a value of 150,000, 18 years left to pay. We are currently paying 5.25% and would go down to SV of 3.69%.

We have been looking at fixed rates as we are expecting twins and realy would like to know our outgoings each month. However, is this the best option?

The SV seems so much lower, how long can you stay on this and do you just look for offers if the rate starts going up? i dont know much about trackers or capped and not sure if they would be a better option?

Any advice appreciated!

opinions4u

lynseyb29 wrote: »

Our fixed rate is due to end in may, we will have £77,000 against a value of 150,000, 18 years left to pay. We are currently paying 5.25% and would go down to SV of 3.69%.

It probably is the best option. That said, I'd suggest you pretend the real rate is 5.69% and overpay the extra 2% (£125ish a month) to get the debt down. Alternatively build up a savings pot to assist you through the maternity period!

We have been looking at fixed rates as we are expecting twins and realy would like to know our outgoings each month. However, is this the best option?

Borderline. It's a really tough call. You can price up fixed rate deals at a site like www.moneyfacts.co.uk. You have a low loan to value (LTV) ratio so should have the best pick of deals.

The SV seems so much lower, how long can you stay on this

As long as you like. But it is variable!

and do you just look for offers if the rate starts going up?

It's always a good idea to keep an eye on what other offers there are. What isn't clear at the moment is that the cost of fixed rates will rise if the BofE rises. They probably will - but not as fast!

Not a straight answer - sorry. But you are asking the right questions.