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Fixed rate dilemma
scn1000
Posts: 9 Forumite
In September last year, I moved house and took out a new mortgage. Interest rates on fixed rate mortgages had just taken an upward step, so I decided to fix for ten years at 5.89%. Well what do you know, 20/20 hindsight - WRONG DECISION!!! 
Since then, rates have come back down again and show little sign of increasing for the foreseeable future.
So, apart from kicking myself on a regular basis, what should I do? I see the alternatives as being to pay the ERC of 8% and perhaps go for a base rate tracker and see what happens; or stick it out and pay the high interest for the next 8 years 11 months in case rates do escalate.
Thoughts and ideas much appreciated.
Since then, rates have come back down again and show little sign of increasing for the foreseeable future. So, apart from kicking myself on a regular basis, what should I do? I see the alternatives as being to pay the ERC of 8% and perhaps go for a base rate tracker and see what happens; or stick it out and pay the high interest for the next 8 years 11 months in case rates do escalate.
Thoughts and ideas much appreciated.
0
Comments
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ERC of 8% will be hard to recover in a sensible time.
You may find that your rate is not that bad if you are high LTV, a lot of the low rates are only for good LTV, whats yours?0 -
5.89% isn't a too bad fixed rate (depending on your LTV).0
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You can play around with figures on the mortgage calculator on the main MSE website to get some ideas0
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Sorry, I should have mentioned, LTV 73% when the mortgage was taken out.0
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