Fix rate or base rate?

markgparker

My fix rate mortgage ends next month, should I get another fix rate mortgage or just stick to the base rate mortgage? any advise?

Farmerbob

What rate are you on now and what will it be from next month?

GMS

What is your attitude towards risk? If you are happy to take a chance on rising rates then consider the SVR. If you want to lnow monthly payments then look at a fix.

If your revert rate is very low then look at overpayments.

Keep in mind that rates are currently low comapred to historic rates and if/when base rate rises the fixed rates availabel now will likely rise too.

A long term fixed rate now may well look cheap in the near future even if it looks less so in the short term.

markgparker

My rate now is 4.5% but i think the base rate is 0.5% i have 5 years left

somethingcorporate

markgparker wrote: »

My rate now is 4.5% but i think the base rate is 0.5% i have 5 years left

Is that YOUR base rate? Usually Standard Variable Rates track it (plus a bit, minus a bit if you are blessed!).

Go back to your mortgage docs, it should give you the info you need. Alternatively, you can tell us who your mortgage is with and we can make an educated guess.

My suggestion would be with such a low mortgage due to end so soon I would stick with the tracker and just overpay at your standard mortgage rate.

CrispyLettuce

Yes - you need to double check what your mortgage will revert to.

For example - my HSBC Fixed Rate mortgage (5.97%) finishes in October, then it will revert to the HSBC SVR (Standard Variable Rate) which is currently 3.94%.

Depending on your lender, the SVR in some cases can be higher than your current rate - even more reason to double check.

trulysaintly

Your circumstances dictate the direction you should take, not a gamble on interest rates.

First of all you need to see an adviser who will assess your situation. The mortgage market is totally different to that of two or three years ago - the first hurdle is finding out whether you CAN remortgage, not necessarily the best deal at this point.

You may be able to absorb potential rate rises in the future, I don't know...neither does anyone on here. Get some advice before you decide.

dimbo61

Well Mark you have posted a question and given no information what so ever!!!
Mortgage size, LTV, income, term left ( 5 years) lender, SVR , what your mortgage reverts to at the end of the current deal ( dont know if its a fix) affordability ETC
How can anyone give views/opinions ( not advice) if we dont have information.

Its like asking what kind of car should I buy without knowing anything about you JAG or micra, transit or smart car