Should i let my mortgage move onto the variable rate?

kingcanter

At the end of June my fixed rate (6.7% for 3 years) runs out.
I am thinkng about selling as i am moving in with my partner so wonder if i should just let the mortgage drop onto the variable rate with the interest rates so low?
I am paying £575 pm on a balance of about £86,000 with The Coventry.
Does anyone know approx what the monthly payments will drop to and if its worth risking it for about a year whilst i set the selling wheels in motion ?
Any help is appreciated.
KC

CloudCuckooLand

Punch your figures in here for how payments change; http://www.moneysavingexpert.com/mortgages/mortgage-calculator

Not a bad idea in the short term, but I wouldn't take too long about it, rates could be moving up well within a year.

opinions4u

kingcanter wrote: »

At the end of June my fixed rate (6.7% for 3 years) runs out.
I am thinkng about selling as i am moving in with my partner so wonder if i should just let the mortgage drop onto the variable rate with the interest rates so low?
I am paying £575 pm on a balance of about £86,000 with The Coventry.
Does anyone know approx what the monthly payments will drop to and if its worth risking it for about a year whilst i set the selling wheels in motion ?
Any help is appreciated.
KC

Welcome to the board.

If the SVR with Coventry is 32%, then I wouldn't drop on to it and I'd seek out a better deal.

(I think what I'm trying to say is that you've missed out a key piece of information).

If you don't drop on to the SVR, make sure any deal you do move on to is portable or has low/no early repayment penalties.

getmore4less

What is the rate you drop to(3.2?)
What is your LTV.

If planning to sell then you need to factor the costs associated with any change over a short period.

at 3.2% if you could get a rate of 2% that is 1.2% on £86k £86pm so fees need to be lower than that * the time to sell

If you change lender there are the coventy exit fees to start with.