mortgage advice

EasyLay

Hi,

We are coming to the end of a fixed rate mortgage deal at the end of the month (4.69% 5 year deal with nationwide). If we decide to leave it we will revert to the standard variable rate BMR of 2.5% which is a substantial drop in what we pay currently.

We like the idea of a fixed rate - however the fixed rates vary from 3.39% (3 year fixed) to 4.49% (5 year fixed) which will continue to stretch us financially. If we fix a new product with nationwide they offer a £400 sweetener.

My question is, if we do nothing and stick with the current BMR will we able to change to another mortgage product if the rates start rising again?

thanks
Mike

Farmerbob

Yes you'll be able to stay on the SVR and when the rates start to rise then you can look to re-mortgage and fix

Thrugelmir

Why do you wish to leave a rate that's guaranteed to remain at 2% above base for life?

EasyLay

Thrugelmir wrote: »

Why do you wish to leave a rate that's guaranteed to remain at 2% above base for life?

are you suggesting we stick with it?

Thrugelmir

I'm certainly suggesting that you consider your options very carefully before losing it permanently. If you would be financially stretched if interest rates were to hit 5%. Which in all likelihood will happen at some point in the future. Then take the opportunity to reduce your mortgage now by making overpayments.

By owing less then the impact of future rate rises will be lessened.