Fixed coming to an end what do I choose now?

kitten47

Hi Folks

Our 5 year fixed mortgage is coming to an end next month and we ar at a loss to know which type of mortgage to choose. My husband and I are on a tight budget but felt in the last two years that we were paying over the odds with our fixed rate. We are currently with Nationwide and are unsure if they are a good choice of lender.

Any help would be appreciated

powerwin

Clearly the main risk of not fixing is that interest rates could rise and create problems for you meeting your monthly payments. If you are going variable, you need to do calculations to see what your repayments could rise to, and then assess how well you might be able to meet them. Working out how much repayments could rise with every 1% rise in interest rates would be a useful exercise.

Interest rates are very low at the moment, and are set to rise. I would do some research on likely interest rate moves and see how well you could cope with them.

After doing all this, you may decide it's safer to stay fixed.

This is not professional advice ...

Rgds

mustang1

If you give more details, people may be able to advise you better. What rate is Nationwide offering you? What is the outstanding mortgage balance and the value of your property?