Need to remortgage, but starting university straight after

lil_miss_17

We own our own place and we need to remortgage on September 3rd. The outstanding balance will be about £175k. We estimate the property is worth £225k, but looking at similar properties in very nice decorative order in the next few roads, they are on the market for £250k. Ours still needs modernisation although we've put in a new kitchen and bathroom, and redecorated the living room and dining room.
Our problem is that I will be starting a 4 year university course in September.
So do we go for a long fixed-term mortgage - the cheapest we found is only £40 less than we currently pay, or do we go for a 2yr tracker then revert to the SVR and hope for the best? Or go for a lifetime tracker? Or is a guarantor mortage the way to go?

Any advice would be gratefully received!

epsilondraconis

Only you can make the decision regarding fixed vs variable. You need to take into account your attitude to risk, your savings, job security of your partner etc.

If you do go down the fixed rate route and are looking for 5 years, the Co-op / Britannia have a 5 year fixed at 3.99% (with a £999 fee). Food for thought...

http://www.co-operativebank.co.uk/servlet/Satellite/1193206372574,CFSweb/Page/Bank-Mortgages?WT.svl=copy

Cannon_Fodder

I'd suggest fixing to cover the period at Uni. A 5yr deal gives you an extra year of certainty, while you find a job upon leaving Uni.

If you went for a 2yr tracker, then rates rose more quickly that you planned for (its just a case of when, not if...) then your lack of income could be a hurdle in securing a new fixed deal whenever that happened. Things could get sticky...

"only £40 less" - fixed for 5 years, is £2,400 saved. Very MSE. If the Coop/Britannia deals beat the deal you found, not forgetting to allow for any difference in fees, maybe go for one of those.

Thrugelmir

Or is a guarantor mortage the way to go?

Do you meet the criteria to remortgage ?