End of Fixed rate, complete mortgage airhead needs advice please!

biffa48

I am not very good with money/mortgages/maths in general and would appreciate any advice that anyone may have.

We are coming to the end of a 5 year fixed rate deal repayment mortgage 4.79% with C&G, we will automatically revert to their standard mortgage variable rate which is currently 2.5% (paperwork states it is capped at 2% for the life of the mortgage?????)

I am tempted to do nothing and stay on that and use the money saved to overpay, from a trawl of this forum that seems to be the general advice? However I do like the security of a fixed rate due to my general rubbishness with money, when I have enquired (only so far with C&G) the fixed rates don't appear to be that good (in terms of monthly outgoings) so I don't want to rush into anything and would certainly search more extensively first.

Our house is valued at approximately £200,000 and our mortgage is for approximately £145,000

We do have other debt, 1 credit card that is on a 0% and will be paid off, and some other loans.

So the main question is, should I keep existing mortgage and overpay?

Thanks in anticipation and sorry for long first post!

kingstreet

IIRC, C&G's commitment is to be no more than 2% over the BoE base rate, not capped at 2%.

I think your plan to overpay while sitting on standard rate is very good.

As and when rates start to rise, you can of course switch to something more suitable if you feel it worthwhile.

herbiesjp

You should be overpaying what is charging you the highest interest.

Thrugelmir

Overpay your existing mortgage and perhaps divert some money into clearing your other debts. The credit card won't 0% forever.