Bought at top of the market, need to remortgage

LisaV

I bought as FTB at the end of 2006 with a 2 year fixed rate and 10% deposit (which I saved and saved for years to get!) - outstanding mortgage amount is £131K and because of house price changes I am still hovering about the 10% deposit mark four years later.

Currently on Santander SVR of 4.24 %. should I fix now? it will mean monthly outgoings increase by about £150 pm if I go to 5.99% fixed offer, but I am nervous about rates going up swiftly with inflation and the likes of me suffering badly as a result..... help!

Any advice greatly appreciated - thanks.

beecher2

Have santander offered you the 5.99% fix? How many years is it for? I'd be cautious of trying to remortgage elsewhere as you may well have an LTV of more than 90%.

LisaV

Called Santander this morning, offering 4.49% for 2 years fixed with fee of 624. tempted to go for it although worried that fix is only short term and at the end of 2 years rates will be a nightmare.

I know, I know... trying to guess what will happen with rates is a nightmare. should I go for Santander offer, or go for a longer term fix at a higher rate?

beecher2

I don't see the point in fixing for 2 years - personally I'd overpay by as much as you possibly can and try to get your LTV down. Why not see an independent adviser to go through your options?

Peelerfart

I agree with Beecher, 2 year fixes are largely pointless and to be charged £624 for it is salt in the wounds.

Make the overpayments and hope the mortgage rate doesn't rise dramatically,then see where you are in 9 to 12 months,unless of course you're losing sleep worrying

With my crystall ball I don't see large rate rises soon - I may be wrong though.