0.75% above BoE

eddiedog

Hi,
Help. I'm stuck in a mortgage maze!
I've recently come off my fixed rate mortgage and am now on a variable rate 0.75% above the BoE base rate.
I've been looking around for a new mortgage but am starting to think I should stay on this rate...am I crazy?

I'd like my new mortgage to allow me to pay extra off as and when I have it, so that part works really well on the current mortgage. I've continued to pay in at the old fixed rate (4.5%)!

I can afford for the overall rate to get as high as 5 or 6% so I'm not too concerned if the base rate goes up, but I don't want to miss out on the deals available now.

0.75% above BoE base rate just seems like a really good deal but am I being naive?

Please help

Peelerfart

Time for a cool head I think.

yes,rates are probably going to go up,and possibly even soon, but as to wether they will reach anything like 5 or 6 % in the near future I really doubt.Just keep paying at your old rate and bring down your LTV.

You cannot get a deal like the one you are on now,in my opinion, dont walk away.

I may,as in all things, be wrong,I'm just some bloke.

GuidoT

Stay where you are, you will not get anything near the 0.75% above base now.

Rates will eventually go up and review it then.

Thrugelmir

eddiedog wrote: »

0.75% above BoE base rate just seems like a really good deal but am I being naive?

Think yourself lucky.

As normality returns to the mortgage market, rates on offer will be in the range of 2% to 2.75% above base.

So take the opportunity to make inroads into your mortgage debt or tidy up your personal finances.

getmore4less

Base + 0.75% is below savings rate!

Why give that up?

when rates go up so will savings.

savemoney

Thats a good rate. I pay 1.89% above Barclays bank rate and I dont owe a huge amount

eddiedog

Thanks guys.
I've alway been on a fixed rate so it all just seems a bit scary to me. Its great that you've all had the same opinion...make my decision seem less scary
Thanks again

rich744

Sit tight!!!!!

My fixed rate ended with the Nationwide. It was 5.19% and went onto their base rate of 2.5% saving arounf £170 a month. IN the months running up to the end of fixed rate, I received numerous letters from nationwide, asking me to consider one of their new fixed rates. Nothing compared to their standard base rate...

So sit tight, but keep an eye on BOE policy.

Burridge60

Congratulations you have a Fixed Rate at 4.5% (with no cap) for as long as you choose to pay it - When interest rates rise above it you will have to pay more (possibly out of what you have saved before they went up).

Try it at the higher rate if you want to stress test yourself to the 6%.

Check with your lender whether you can get the money back easily if you should need the overpayments. Very important if you don't have a separate emergency fund.

One big plus no arrangement fee. On balance as much as £1000 saved.

Thrugelmir

rich744 wrote: »

I received numerous letters from nationwide, asking me to consider one of their new fixed rates. Nothing compared to their standard base rate...

Thats because the NW's SMR is currently 3.99%, some 1.49% higher than BMR. This is the default rate that you'd move onto if you opted for a new fixed term product.

Marketing material sent from banks has a purpose .............

nichart20

Our fixed rate ends in Oct and is 2% above BoE base rate we are going to over pay as if the interest rate is 7% after great advice, I am a little obsessed with the overpayment calculator, working it out for different rises I am going to join MFW in July once debt free