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Fixed to tracker
sykes01
Posts: 4 Newbie
Hello
My fixed rate deal is coming to an end in the next few months (currently 4.84). It reverts to a tracker 0.99 + BOE base rate.
1.49 seems like a pretty good deal, but as the only way is up with interest rates, I am wondering whether it is better to get a fixed deal now or go with the tracker and use any money saved to over pay the debt. The loan amount is around £47K. My concern is when it comes to fixing, the lower rates will not be around and any benefit in reducing the amount through overpayment will not be reflected.
We also have a smaller loan (£28K) coming to an end, but this reverts to SVR (4.99) so fixing this now seems to make sense.
Any thoughts gratefully received
My fixed rate deal is coming to an end in the next few months (currently 4.84). It reverts to a tracker 0.99 + BOE base rate.
1.49 seems like a pretty good deal, but as the only way is up with interest rates, I am wondering whether it is better to get a fixed deal now or go with the tracker and use any money saved to over pay the debt. The loan amount is around £47K. My concern is when it comes to fixing, the lower rates will not be around and any benefit in reducing the amount through overpayment will not be reflected.
We also have a smaller loan (£28K) coming to an end, but this reverts to SVR (4.99) so fixing this now seems to make sense.
Any thoughts gratefully received
0
Comments
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Depends what fixed deals you will qualify for...and the fees for getting out early.
Getting it all into one product might be an idea. Save two product fees etc...Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
I am with Alliance and Leicester, so if I decide to keep the larger loan on the tracker, I will have to keep the smaller with them (as noone is interested in that alone) They have offered me a 3 or 4yr fixed @ 4.49% fee free for this one (or 2yr fixed @ 3.99). The original intention was to lump the two loans together, but I'm wondering if the 1.49% tracker with no tie ins may justify keeping the two seperate at the moment?0
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