Remortgage - Fixed or Tracker?

leni

Our mortgage deal comes to an end in May 2011. So we are debating whether to go fixed or take out another tracker. Any advice? This is our current situation;

17 years remaining
49% LVT (£53,000 outstanding - £110,000 value)
I start Maternity in May and will most probably be made redundent during maternity leave.
Husband is in a secure job (as a job can be)
I also have a part-time business which will suppliment the income.
Current deal 1.1% = £285 repayment per month with Halifax - then reverts to SVR of 3.5%
Our monthly outgoings are £500 (not inc mortgage)
Monthly household income whilst on ML will be - £2000 (not including business income)

I've been looking at First Directs 5 year fixed deal of 3.8%, £99 booking fee, plus valuation (no idea how much these cost) - £356 per month

Given our current situation, if we stayed on the Halifax SVR, we only need a rate rise of 0.25% to be almost the same as the fixed rate. Plus given the future job prospects and starting our family - is fixed better? 2 year, 3 years or 5 years?

Peelerfart

In my opinion,

First Directs 5 year fixed deal is a great offer which,if I wasn't on a low tracker, I would be applying for.

Sounds to me like stability might be desirable in your circumstances.

Good Luck

PF

dimbo61

If you can get the FD 5 year fix then bite there hands off as this gives you long term security just when you need it and you can overpay if you have the money

Rocket_Scientist

FD are currently offering free valuation and legal fees on remortgages too!

CloudCuckooLand

Sounds like a very good Fixed deal.

Just wonder if they might value your place a little lower to bring you above 50% LTV...would that hurt the rate much?

Worth applying.

steveM1978

I agree, If you can get a 5 year deal at that rate grab it! (even if it goes up by 0.25% with your LTV)
Guessing the MPC actions is a lottery but for what its worth "i think" it will be at 1% by the end of the year. thats an opinion and nothing more.

Gorgeous_George

Assuming that your SVR is not linked to the BofE base rate, I think the base rate would need to rise by more than 1% before the SVR changed. That said, a 0.3% margin at low cost must be attractive for security.

I'd only be tempted by a longer term fix. You need to judge what the sitiation will be at the end of the fix. House prices could be lower, mortgages rationed. You might not have a choice to switch lenders at low cost - if at all.

You pays your money and takes your choice.

GG

Babymerlin

hello there.

how do i find out about this First Directs mortgage offer, i have been on their website and it donesnt tell me anything!?

sounds a good deal. my mortgage fixed rate ends in feb, and i am a bit lost at the moment. was having countrywide mortgage people over tonite but cancelled them as didnt know if they would charge a fee for it. so im swimming in a massive sea of mortgage talk and im drowning!

beecher2

http://mortgages.firstdirect.com/mortgage-products/product/5-year-fixed-repayment~35

for those with an LTV of up to 65%

I thought you'd decided to stay on the SVR as you were moving?

Babymerlin

hi - yes still having wobbles about the whole mortgage thing.

but been researching all afternoon and i think our halifax SVR mortgage is the way to go.
thanks

hansonwa

Our Fixed just ended so currently 1.25% :T

I have decided to apply to FD for the same 5 yr fixed and pay the £99 fee to hold the Mt for 6 months so I will at least get 6mths low rate whilst untied and, have the back up that if the rates do rise a good rate is all ready secured.
I will also be re checking the offers in 6 mths to decide whether FD are still the be offer.
Peace of mind for £99