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new mortgage deal
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worried_jim
Posts: 11,631 Forumite
I have been offered a new mortgage deal from santander. I have 18 years left on £91k and have been offered a two year tracker @ 2.79% above base rate, I am currently on the svr 4.24%.
There is a £100 fee for this deal.
Now unfortunately shopping around with other banks is not an option as my credit is shot so I have to stick with santander and I know that no one has a crystal ball but over the next two years will rates rise another 1% to 1.5% or should I fix for 5 years @ 4.69%?
There is a £100 fee for this deal.
Now unfortunately shopping around with other banks is not an option as my credit is shot so I have to stick with santander and I know that no one has a crystal ball but over the next two years will rates rise another 1% to 1.5% or should I fix for 5 years @ 4.69%?
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Comments
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It's a matter of opinions really.
If you think (as i do) we'll get another 14 months of low rates, then go for the tracker and over pay.
That said, historically 4.69% is low, and I guess possibly in 5 years time, we may only be dreaming of interest rates of only 4.69%.
So in short, I don't really know, but for a hunch, I'd go for the 2 year tracker...Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
Why is your credit "shot" are you struggling to manage
A 5 year fix gives you long term security while you sort out your credit score.
Use "whatsthecost" to work out how much extra the fix would cost and dont forget interest rates would only have to go up 1.5% before you are worse off!0 -
Answer this.
Will interest rates in your opinion remain below 2% on average over the next 5 years?
Can you afford and mantain the payment at the fixed rate?
Are you are risk taker or more risk averse where your home is concerned ?
There you are. You new the answer all along didn't you.:)0 -
Great advice !
I thought http://www.whatsthecost.com/mortgage.aspx was a brilliant tool and really appreciate the tip. I think I will say on the svr @ 4.24% at the moment and then as soon as the rate starts to climb I'll call that day and fix for 5 years @ 4.69% as rover35 has made me very aware that I am risk averse when it come to my home.0 -
When rates begin to climb, that 4.69% 5 year deal is unlikely to be available.0
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Its less than 0.5% so sign up today and clear all the over debts over the next 5 years safe in the knowledge that your mortgage is fixed!!0
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