Fixed rate at 4.99% ends December, what to do?

Paul_T_Newby

Hi all,

My 5 year fixed rate with nation wide ends in December currently on 4.9%

I'm looking for some advise or peoples thourghts on what i should do, as i'm a total novis when it comes to mortgages.

We have around 80k left to pay and the house is valued around £120,000

We are also thinking of having an extension built in the new year and thinking to add £30k on to the new mortgate to cover the building costs etc. (idealy dont want to add to mortgage but only option)

Ideally we dont want to add any more years to the mortgage (20 years currently remaning) would rather pay a higher monthly payment.

Are we best to try and get the best deal we can with the additional 30k and try and fix it. Or get a tracker mortgage and keep an eye on the market?

Any advice\help is much appreciated.

Cheers Paul.

Cannon_Fodder

Wait until September/October.

You won't want to pay an early repayment charge, I suspect.

After summer it may be clearer whether rates will be heading up, and eliminate the tracker.

Or show that rates are held down, and maybe keep the tracker in play.

Also, house price movements may affect the Loan-to-Value when you add the £30k to the mortgage - might or might not be doable depending which way things shift.

Election result may give clues to direction things will head, too.

If you can afford higher monthly payments, start saving those now and it may avoid the full £30k going onto the debt and/or be available to improve the LTV if needed.