Current Deal Due To End....

MWillow_2

Good Morning Everyone!

So, our deal is shortly due to end and i am unsure what to do....

Outstanding Balance = £162,934
Current Deal = 3yr Fixed @ 5.99%

We are with the Halifax so we are going to drop onto their SVR of 3.5%, then over pay to continue paying the same amount (don't want to pay less).

We have also been offered the following: -

2yr Fixed @ 4.74%
3yr Fixed @ 5.59%
5yr Fixed @ 5.64%

So, what would everyone do??

Thrugelmir

Very much down to personal choice whether to fix or not.

An SVR of 3.5% is a reasonable rate in the current market. So if you are comfortable in the knowledge that interest rates over time will only be heading one way. Then maintaining your monthly payment at the same level as now will make inroads into repaying your mortgage debt. Maybe even try to find some additional savings from your budget to pay that little bit extra.

Mortgage interest is calculated and charged monthly. So every month of overpayment will reduce the amount of interest and correspondingly the capital balance owed. Even as interest rates rise you can absorb the increase by maintaining your repayments.

By overpaying you will also improve your LTV which in time may offer better remortgaging options with alternative lenders.