Fixed rate coming to an end, <10 LTV

cianelectric

I'm currently coming to the end of my Natwest 2 year fixed rate deal which had a rate of 5.74% and my repayments are around £850 interest only. I've been overpaying to pay back some capital each month. My LTV was 5% 2 years ago and is probably around 7% now.

My options are:
1) move to new 2 year natwest fixed deal at 5.49% with £199 arrangement fee
2) 5 year natwest fixed deal at 6.09% with £199 arrangement fee
3) Stay on the SVR (think this is currently 4%) which would allow me to me to overpay around £500 per month capital on top of the interest to try and boost my LTV. However this is more of a gamble of the SVR starts to rise and I can't then get one of the fixed deals at the rate they're currently at.

Any thoughts? Thanks!

smitchy73

Cian,
Do you mean you have a 95/93% mortgage, that should be your ltv rate, if you only have a 5% ltv you must hardly owe anything on your mortgage.
Personally I'd say go with the SVR and overpay, but keep an eye on the interest rate's, and deals with lenders, but these vary from day to day.
On the other hand if you want to be fixed and know where you stand for the next 2/5 years then the fixed rate could be fine, but i'm sure you'll still be able to overpay some at the same time, thereby bringing your ltv down, and hopefully house prices will rise a bit more again and that will also have an effect, if that happens and your on a SVR then you may be able to get a cheaper fixed deal when you want to change later in time.

happybroker

could be a really nice house house I suppose.

cianelectric

Thanks smitchy73, yes I was being tired / daft

I meant LTV > 90 ie 93 or 95% mortgage as you say. I think I will go on the SVR for now and keep an eye on interest rates and property prices

Appreciate your advice!