Remortgage Query

Aberdeen_Taff

Okay - now I posted here a while ago but have been computerless since and am looking for advice on remortgaging.

My fixed deal with First Active (end of 3 years at 5.59%) concludes at the end of April at which stage I will go onto 1.1% above base rate so will be paying 1.65% reducing my mortgage payments from £834 to £579 (courtesy of the very nice, helpful man at First Active).

The house is valued at £345k and we have £128k outstanding so a low LTV although I would be happy with incresing the mortgage to £135k for some home improvements I'd like to make - there is 22 years left on the mortgage.

It all sounds good so far but I'm wondering people's thoughts on where the base rate will be over the next year or so (I won't hold any of you liable for your advice but it's a subject I ahve very limited knowledge of!!) and was wondering if the mortgage brokers out there had any advice as to what would be good for me and my family (wife plus two little ones aged 4 and 2). I'm not a gambling person and like the security of a fixed deal so I know what's coming in and out money-wise and have a definitive date for my mortgage to end.

Any ideas as to deals that are out there for a fixed rate deal (or should I juast stick with what I've got on the low 1.6%?). I used a fee free mortgage broker from here the last time but can't get a reply from them and am happy to sort my mortgage out in the same way again if anyone has any ideas.

For what it's worth First Active mentioned:

2 years fixed 6.79% - £699 pm or Broker deals of:

2 years fixed 3.89% (fee £999) or
2 years fixed 4.89% (fee £799) - £807 pm as other deals they have but advised I contact a broker first


Thanks

AT

getmore4less

Whats the income

What could you afford in £pm if rates went up.

You are looking for £7k for improvements, how urgent, can they be done over a period of time without borrowing more?

Your mortgage is dropping by £355pm thats 19months worth of savings to raise £7k

How big is your emergency fund for things that come up or for loss of income?

2y fixes won't protect you against rate rises for long if at all on these deals.


1.1% above base is a good rate, differentials above base are much wider at the moment.

Aberdeen_Taff

Thanks for the reply - I could go back up to what I'm at now comfortably and could go higher if needs be. I was looking at the saving the £7k by banking the difference but it's patio doors/windows that are cold and draughty and wouldn't want to go another winter with them ideally!

What are your thoughts on the rate rise potential? Should I be looking at 5 year fixed as the other option then?

Apologies - I earn guaranteed £38k plus overtime (usually at least £2k) and OH is part time on £17.5 k with new second job that will be approx £2-400 extra per month.

Also monthly savings are £255 as it stands - which I amke as 27 months to save the £7k - far too long to wait to warm a house up in sunny Aberdeen!!