Mortgage fix or wait on SVR?

boogiesherbs

Hey all im after some advice, our 3 year fix ends next month on our interest only mortgage, so we will be on the SVR from then which is about 130 pound a month cheaper.

The problem is that in two months my wifes salary will drop when she goes part time after maternity leave ends,

So is it better to fix now or to take advantage of low SVR for a few months in the hope that the salary drop wont affect our rate too much?

Emma and Nick

dimbo61

You need to look at this long term at least 5 years! until your child is at school.
What is your current lender offering you in the way of remortgage deals!
How are you going to pay off the mortgage ? Interest only.
Whats your LTV and how big a drop in income will your wife have?
Things have changed in the mortgage market big time and you will need a savings vehicle to prove you will clear the mortgage at the end of the term.

opinions4u

boogiesherbs wrote: »

Hey all im after some advice, our 3 year fix ends next month on our interest only mortgage, so we will be on the SVR from then which is about 130 pound a month cheaper.

The problem is that in two months my wifes salary will drop when she goes part time after maternity leave ends,

So is it better to fix now or to take advantage of low SVR for a few months in the hope that the salary drop wont affect our rate too much?

You haven't provided the hard numbers to let anybody help you.

A 6% SVR would probably be a bad thing to keep. A 2.5% SVR would probably be a good thing to keep. Each individual lender has a different SVR.

1) Who is your lender?
2) What is their SVR (and does it track BofE)?
3) What fixed rate alternative are you considering?
4) How much is your house, realisticsally, work.
5) How much do you actually owe on your mortgage?
6) Do you have any bad credit, missed payments etc?