Need help should I opt for a Mortgage with a low SVR?

theAnarchist

Hi I am looking to get a mortgage as a first time buyer and I have a problem.

Some of the best rates have high SVR's. While some of the other deals have lower SVR's.

I,m looking to get a 2yr fix. But if I go with the best deal I am going to have to remortgage asap at the end of the term. Because of the high SVR that I will switch onto.

But if I got for one of the other deals, at the end of my term, I may find my repayments will be the same, or slightly higher or lower.
What should I do?

Do I risk paying less now and worry about the SVR at a later date.

Or go with a lender that has a low SVR but a slighty higher premium?

Thanks

Fairdo_2

Difficult to say. What made you opt for a 2 year Fix in the first place?

If you feel that will be over with too soon, maybe it would be worth paying a slightly higher rate to secure for longer?

It is worth making sure the initial term is most suitable first, then look for true value for money. How much would it cost to get into and out of? What is it likely to cost to Remortgage when the deal ends?

Also, you need to ask yourself, what is the liklihood of the lower SVR lenders being the lower SVR at the time the rate expires?

For what it's worth I would work on what I know at the moment and set my stall out for that at the moment.

Best you spoke through your options with a suitable professional (fee's free whole of market blah blah) and work it through together.

theAnarchist

I,ve spoken to a mortgage advisor and he cant answer what may be.

It's a bit of a gamble.

The reason why I have gone for two years is so that I can get out the mortgage early if needed. Locking into a 5 year deal is not the best option for me, until I have more funds to secure the property with.