Current deal the best deal?

redlee

The Brittania/co-op fixed rate 3.99%/5 years caught my eye as i expect interest rates to go up and i'm a self employed tradesman so work isn't guaranteed but i'm on a better deal than i thought with my current lender. Current mortgage with the Manchester is 1.5% above base rate until the end of the loan (20 years left) and o/s mortgage is £40,000 with the property "valued" by estate agents at £159-169k so am i right to stick with my exisiting mortgage?

getmore4less

If you pay as if you had taken the fix then the debt will reduce protecting you considerably from any rate rise.

With 2% mortgage rate you probably can get a better rate in savings which you can raid if the income drops a bit.

How big a buffer do you currenty have for a down turn in trade,
or put another way, how many months expenses do you have in reserve?

redlee

We've got a buffer of 8k so a good few months worth and started to overpay on the mortgage a couple of months ago to take advantage of the low rates. Currently paying £700 a month towards the mortgage.

Peelerfart

Unless I'm mistaken the fees on the coop mortgage is £999.

That's a lot to pay on a £40K mortgage. I would be inclined to keep on doing what you're doing IMHO

bullybear

I have just fixed to this one if u bank with coop on £599 fee

dimbo61

With the size of your mortgage and the costs to change lender I would stay where you are and build up your savings to at least 6/9 months of income and then overpay or do both!