Current mortgage deal finishing..what to do?

snowmaker

Hi,

I was wondering if anyone could give me some advice regarding my mortgage.

I have just recieved my mortgage statement from Santander and I see that my 3 year fixed rate deal finishes at the beginning of April this year, I fixed it at a rate of 5.99% in 2008. I am currently paying roughly £500 a month and have a balance of £63,000 left to pay over the next 17 years.

What I would like to know is what sort of deal should I take on next, I am presuming that interest rates are likely to start going up gradually this year so would it be wise to get another fixed rate term at todays lower interest rates (which ones are the best deals currently?) or a variable rate?

Also I am considering doing some home improvements so is now a good time to borrow maybe £10,000 to include in my mortgage?

Thanks,
Steve

Radionotme

How much did you borrow, how much was the house worth, how much do you still owe, how much is the house worth now?
These things would be factors in any answer.

The good news is that the standard variable rate is 4.24%, and if you wanted another 5 year fix, then that's between 4.74% and 4.99% depending on LTV, so you'll be better off regardless.

Depending on your circumstances and LTV you can shop around for better deals too, but you'd need to know the key facts above.

As for variable vs fixed, it depends whther you're prepared to risk the possibility of higher rates against the surety and peace of mind of a fixed deal. Interest rates can only go up, but by how much, and how fast, nobody knows.

snowmaker

Hi,

Thanks for replying, I originally borrowed £77,000 in a Homebuy scheme with a local housing association on a property which was on sale for £103,000 when I took out the mortgage in 2002.

I still owe £62,300 and the house is now worth approx. £160,000.

Required payment of the other 25% (at todays value) owned by the housing association would only occur if was to move house.

I have just seen this deal at Yorkshire Building Society with a small arrangement fee and good 5 year fixed rate of 4.79% http://www.ybs.co.uk/mortgages/current_products/products/5yr_fix_02r.html

Does this seem competitive? I may be looking to overpay to the same as I am paying now on my higher rate.

Many Thanks,
Steve