Is it worth remortgaging?

summerday

Hi,

We are currently on the Halifax SVR of 3.5%. Our payments really came down recently after our fixed-rate period came to an end. The balance is approx £140k and house is worth approx £210k. It's a repayment mortgage.

Most opinions seem to be that interest rates will almost certainly rise this year, so we're really not sure what to do for the best? We could cope if rates rise, just obviously don't want to pay more in interest than is necessary in the long run. Of course the arrangement fees need to be factored in too...

Also should say that we could use some savings iff necessary to bring down the balance to 60% if it meant accessing the best mortgage rates.

Any opinions or advice on whether it's worth remortgaging and what do would be appreciated.

Thanks, Summerday.

fishty

I've also heard that mortgage rates will most likely rise this year.

I came out of my fixed term 2 years ago and am nervous of how the market may go. I've been seriously considering going back to a 5 yr fixed rate at 4.4% while it's still on offer, even if short term it does mean the initial payments will go up, I'm hoping long term that it will pay off.

I'll be looking forward to hearing what everyone else has to say about this.

dimbo61

Unless you are about to come into lots of money why not take a long term view of your mortgage. Its a marathon not a sprint and the security of a 5 year fix where you know the biggest bill each month helps with the family budget.
Any 5 year fix under 5% is good value.

summerday

Thanks Dimbo. Any other opinions anyone?

molit

its all about your attitude to risk....

Crashandburn

say 3 year fixed deals at 4.19% with next to nothing to set up............you just have to ask yourself if you feel rates will rise 75bps over the next 3 years for you to be losing out??!!??

Some offers dont need to be taken up for 6 months so you can reserve the rate now and then draw it down in Sept.

shortchanged_2

Thing is summerday your SVR isn't all that great anyway to be honest. If it was an above BoE rate of 1.5% or less or an SVR of 2.5% for example then I would be more tempted to stay on the SVR, but on this 3.5% rate you are definately more exposed to interest rate rises.