Re-Mortgage or not to Re-Mortgage

HOD_3

My current deal is up and the BoE BR is 0.5% therefore the currently SVR with Nationwide will be 2.5% looks good.

However is it worth going with this or protecting my bases and get a fixed NOW i.e how long are most people going with a variable !!!:D

Gorgeous_George

Your current deal is effectively a tracker - capped at 2% above base rate.

I doubt that you will find a better variable of tracker rate for many years. Whether a fixed rate would be better will only be known for sure when we have the benefit of hindsight. The best that anybody can do at the moment is guess when rates will rise, by how much and how quickly. Stick the numbers into a spreadsheet and work out the costs over 5 years (or however long the available fixed rate mortgage would be). Don't forget to add in moving costs, admin fees etc. If it is cheaper to fix, considering doing so but remember, your new fix will probably not revert to a 2% tracker.

I'd stick with the current mortgage and save the difference to mitigate against higher base rates. But that is me personally - happy to take the risk due to having a small mortgage.

GG

SandC

Mine's up in December and i'm going to stick with SVR - my reasons are my mortgage is small and the fees for setting up deals appear at the moment at least to be quite prohibitive.

We will never know exactly what the interest rates are going to do or whether if the interest rates rise to a more 'normal' level the lenders will continue to fix their SVR at 2.5-4% above that level. There are many variables which they can use at the time according to their business and lending needs.

A good thing about being on SVR is that you are in a good position to look around for deals without thinking that you've got x months til your current arrangement runs out etc. My lender's svr is 3.5%.

You have to add up your risks if the worst case scenario happened and how much you could afford to pay each month. Your risks might be far greater than mine.

I do remember someone telling me how risky trackers were and how they'd never touch them with a barge pole. Of course it has served me very well with the interest rates being as they are. I had my reasons for having a tracker and taking the hit of higher payments just as others would never consider anything other than fixed rate so they know where they are.