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I've come off a 5 yr fixed rate mortgage onto 1.25% AVR
spigmite
Posts: 6 Forumite
Hello,
Please forgive the possibly stupid question.
I've been on an Alliance and Leicester 5% fixed rate mortgage for 5 yrs. It ended in Oct 2010.
Since then, it's reverted to an AVR of just 1.25%
My really basic question: Is this right?! It doesn't seem to match any of the offers on their site. (Or any offers I can see anywhere else, for that matter. Or am I just not looking hard enough?)
And secondly, is it even worth thinking about moving onto another deal anywhere?! Is the best plan just to sit tight, and if interest rates look like they're creeping up, make a call then?
Sorry if this seems like a daft question. I was all clued up 5 yrs ago when I took out the fixed rate. (Using a broker I hooked up with via this site). Since then of course interest rates have dropped dramatically and everything's changed.!
Cheers,
nick
Please forgive the possibly stupid question.
I've been on an Alliance and Leicester 5% fixed rate mortgage for 5 yrs. It ended in Oct 2010.
Since then, it's reverted to an AVR of just 1.25%
My really basic question: Is this right?! It doesn't seem to match any of the offers on their site. (Or any offers I can see anywhere else, for that matter. Or am I just not looking hard enough?)
And secondly, is it even worth thinking about moving onto another deal anywhere?! Is the best plan just to sit tight, and if interest rates look like they're creeping up, make a call then?
Sorry if this seems like a daft question. I was all clued up 5 yrs ago when I took out the fixed rate. (Using a broker I hooked up with via this site). Since then of course interest rates have dropped dramatically and everything's changed.!
Cheers,
nick
0
Comments
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If you are on such a good rate then you were probably due to move to base +0.75% or SVR minus XYZ. Have a look at your documentation and next time, don't leave it 6 months before checking !
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"old" deals are much better than newer deals, particularly when you look at follow on rates, follow on rates of 1/2 - 1% above base are not unusual on old delas - mine is base + 0.19%!I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Now think about what you can do with this reduced rate.
1) Clear unsecured debts.
2) Build up a contingency fund.
3) Build up some savings (perhaps in an ISA) to use to repay part the mortgage debt while savings rates are higher than your mortgage rates.
4) Top up pension contribtions.
5) Take part in a sharesave scheme at work.
You are in a great place. Don't waste this money.0
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