Fixed Rate Coming to an End

MrsPorridge

Can I have some advice please? DH and I took out a 10 year mortgage - first five years were fixed at 4.98%. The fixed rate period is coming to an end in January 2011. What shall we do - fix again or leave it for a few months to "enjoy" a lower rate of interest?

We never have any spare money at the end of the month so cannot over-pay anything.

I am a stalwart of the debt free wannabee board so any "extra" money made from paying the mortgage at a lower rate will go towards debt repayment.

Thanks in advance.

[Deleted User]

What is your SVR going to be?

MrsPorridge

Sorry - what's SVR?

[Deleted User]

The rate you go onto after the fixed rate finishes.

beecher2

The standard variable rate - the rate you'll go on to. You might be lucky and it might be 2.5% or you might be unlucky and find it is closer to your present rate. Dig out your paperwork to see if you go on a tracker, or tell us your lender and someone should know.

MrsPorridge

Thanks - Lender is HSBC - no idea what happens - can phone them (not sure if they are open tomorrow). Will check my paperwork over weekend.

slummymummyof3

HSBC had fantastic 5 year fixed at 3.95% for £99 - we went with this (although it cost us £500!!!) - don't know if they are still doing such a good rate though.

beecher2

I think their SVR is 3.94%. Depends on your LTV what sort of rate you'll get - that 3.95% one is for those with LTV of 60% or less

slummymummyof3

Our LTV is less than 30% and we didn't have to have a valuation done either - they just took the 'average' 4 bed house value in the area.