Variable morgage

he200hi

Hello,

I have a fixed mortgage that ends in november and goes to 3.5%.
looking around the best mortgage I can find is fixed for 2 years at 3.55%.
I know we can't predict the future but I'd appreciate any advice as to whether to go for this or wait and see if there is a better deal?

Many thanks in advance:)

AskMeAnother

More details needed please.

Current lender, loan amount, house value, income levels etc.

he200hi

House worth 235, but I suppose 220 to a lendor as auction price. 172k left on mortgae, 20yrs

AskMeAnother

ok, so you're potentially under 75% loan to value. So as long as you meet a lender's income and credit scoring criteria there's no reason why you can't find a better deal with someone else, certainly under 3% i you want a 2 year deal.

JimmyTheWig

Are there fees to pay to get this 3.55% fix?

I personally don't see the point in paying fees to get a 2 year fix. I don't think rates are going anywhere particularly fast for the next 18 months at least. So paying to get a 2 year fix, in my mind, means paying to get no benefit, only to be left needing a new rate at potentially the time when rates are on the increase.
If you're happy where you are then I would go for a long term fix. Or stay on the 3.5% variable rate with no fees.

Obviously I don't have a crystal ball and could be wrong. It's your choice.
You need to consider...
1. What you think rates are going to do over the next few years.
2. How long you plan to stay in your property.
3. How much of an increase in a variable rate you could afford without it becoming too difficult for you.

AskMeAnother

JimmyTheWig wrote: »

Are there fees to pay to get this 3.55% fix?
If you're happy where you are then I would go for a long term fix. Or stay on the 3.5% variable rate with no fees.
QUOTE]

edit: Sorry, not sure why quote didn't work...so have simply changed colour

Or take a variable rate under 3% if you're happy to tie in for another couple of years. etc.

5 year fixed rates available around 3.39% subject to usual lender criteria.

JimmyTheWig

[The quote didn't work because you've lost the "[/" fromt he "closing quote tag" at the end. It's what often happens when you highlight the last word in a quote.]

Would you have to pay (arrangement fees, etc) for a sub-3% variable rate?
5 year fix at 3.39% sounds good, depending on fees.

AskMeAnother

can get under 3% with no fees at all - can get to 2.29% with a 995 fee (probably worth it on a mortgage of this size)

Fees on the 5 year fixed vary up to £2000 but again are worth it versus the low fee equivalent over a 5 year period.

Some great deals out there now if people have the time (or contacts) to look properly.

Thrugelmir

he200hi wrote: »

House worth 235, but I suppose 220 to a lendor as auction price. 172k left on mortgae, 20yrs

What SVR will you move onto when the fixed rate ends?

AskMeAnother

He said it's 3.5% - and judging by the retention product offer my guess would be Halifax ??