5yr fixed rate

Lira

Thrugelmir wrote: »

Do you want security of known monthly repayments, or pay less with the risk that rates may rise.

When I say pay less, I would always add the caveat of overpay your mortgage by what ever you can afford. As the saving is only the interest. The capital balance has to be repaid one day which ever route is taken in the short term.

Yes, it's probably easier to budget if I know the amount will be the same each month/year. It's looking like I probably took the right advice at the time. It's just so much!! I was going through a very, messy divorce at the time so I was probably not in the best frame of mind for making such big decisions. Hey, ho. We live and learn!

Lira

_Andy_ wrote: »

5.54 is a good rate and will give you medium term stability.

I wonder what the chances are that I'll get the same rate in 2012 then?
I shall have to wait and worry about that when the time comes.
Thanks for your replies.

Gorgeous_George

You can work out whether it is worth switching deals. It is unlikely that it will be worthwhile with just two years to go.

You'd need to compare the cost of doing nothing (sticking with your current deal) and the cost of switching to a 2 year fixed rate. As well as early repayment charges (ERCs) there will be a final repayment fee, admin costs for closing the mortgage, admin costs for starting a new mortgage, solicitor fees, arrangement fees and a valuation fee.

If it was to be worthwhile, the benefits would only be marginal and not worth the stress IMHO.

I don't expect interest rates to rise in te next two years but with Ant and Dec running the country, who knows?

GG

dimbo61

You need to read the paperwork that came with the mortgage!
Does it say that the ERC decreases over the 5 year term ?
3% in first year
2% in second
1% in third ?
What does the mortgage revert to at the end of the fix? SVR or some form of tracker deal?