halifax 5.95% deal comes to an end... what now...

james3333

so, guys, my fixed deal of 5.95% hasd come to an end at last...Phew!
so, im now dropping onto the SVR at 3.5%....saving me £140 PM

what to do now tho?
the BoE has had rates at 0.5% for 15 months, can they stay there much longer, will i benefit at all from the SVR or should i jump straight into another fixed deal?

opinions?

roseland69

I think its a case of how long is a piece of string. No one knows. The only certain thing really is that when they do change, there's only one way they can go.

Shonamy

There is a mortgage provider currently doing a half and half so half of it is tracked at about 2% above the BOE rate and the other half is fixed at around 2.7% from memory you can spread the risk with this mortgage if you are unsure what to do.

Also, if your current track rate is at 3% above BOE rate then it is unlikely that it will get above what you have recently been paying in the next year or 2. BOE rates normally increase or decrease by .5% and it is generally reviewed monthly. However, it is unlikely that any changes will occur within the next few months and you would need 5 increases to get up to your previous rate. Although nothing is guaranteed.

If you are able to it may be an idea to continue paying the same amounts you have been paying as you are already used to that going out and that way when the increases do come it will be on a smaller amount of funding and may not work out much more than what you are already paying.

dimbo61

With the coop doing a 5 year fix at 3.99% you would still be saving money and have the security of a long term fix.
If you used "whatsthecost" website you could play with the figures and reduce the term so that you are paying the same as now but knocking a few years off your mortgage term ( and saving thousands in interest)

AdamBrunt

dimbo61 wrote: »

With the coop doing a 5 year fix at 3.99% you would still be saving money and have the security of a long term fix.

I am in the same position as the OP and have been for a few months (with the Halifax on their SVR after my BoE+0.96% tracker finished around Christmas.

The only way SVR and BoE base rate can go is up - so for the cautious, a getting a fixed rate that close to your existing SVR could be a bit of no brainer. I will have to do some investigating [ certainly can't be as bad as the 'best buy' fixed on charcol; A&L 2.64% fixed for 2years - not bad you might think until you see it has an admin fee of £3000 !!! ]

james3333

I have only ever had 1 mortgage provider ( halifax)... how easy/much hassle is it to switch.....really? forms/calls/fees/solicitors?

rags1982

also in the same dilema at halifx

Can get a
fix 2 year @ 3.99
fix 3 year @ 4.39
fix 5 year @ 5.29
or
tracker at 2.40 above BoE rate = 2.9%

what to do is the question??

Can i see base rate at 1.5% in the next 12 months which would mean no point fixing for 2 years as that would be the same.
If I do tracker for 2 years, do people think rates will go up when the deals come out in two years?? i.e

a 5 year fix at 6.29% instead of the current 5.29%?

Is a five year fix good at 5.29 at present?? will the trackers reach 5.29 over the next 2 and a half year??

Wh05apk

Lenders margins are currently far too high in my opinion. personally I would stay on SVR until a decent rate comes along, I certainly would not be looking at fixing at 6.29%, I think it highly unlikely rates will go back to that for a long time (I could be wrong, watch them jump to 15% next week when UK plc has to borrow money to bail BP out!)

dimbo61

The Fee for the coop 5 year fix is £999 and you need a loan to value of 75% or less.
If you dont have 75% LTV then overpay the mortgage while on the SVR and check out for deals you can get.