Standard Variable Rate or Fixed?

GSXRCarlos

Hi all, just want to check that i've got my numbers right.

Due to finish my 3yr fix in August, and have been looking at new mortgage rates.

I'm currently paying 403/month + overpayment = £410/month, in august the payments will drop to 304/month (Nationwide 3.99% standard variable rate).

Nationwide's SVR has not moved in the last 3 years of the mortgage and i presume it won't be moving any time soon.

If i continue to pay £410/month is it really worth moving/fixing or am i actually better off staying on the SVR until things look like changing?

Thanks

Thrugelmir

Interest rates could move when you least them to.

How do you intend repaying the credit card debt? May be better to let the mortgage drop onto SVR and use the released cash to tackle this debt.

GSXRCarlos

The credit card debt will soon be taken care of by an extension on my mum and dad loan, so i'm not too worried about that, but you've definitely given me something to think about. Hadn't thought of it that way. Thanks

benjaminsmam

I too am finished my Fixed tracker at the end of March and have £1,400 CC looking at this I think I will stay on SVR and look to pay off the CC too, is it worth borrowing extra though as Santander were pushing me to do this last week when I popped in on my lunch hour, practically throwing more money at me, is this responsible lending?

Thrugelmir

benjaminsmam wrote: »

practically throwing more money at me, is this responsible lending?

What's changed is that the lending criteria is far tighter. Being asked and offered are two totally different matters.

dunstonh

Predicting interest rates over the medium term is unreliable at best. No-one predicted them to be this low. Indeed, the trend for predictions before the steep drop was for them to go up.

You buy a fixed rate to get certainty of payment each month. Not for it to be the best rate going. Sometimes that may end up with you paying less, sometimes more but at least you know exactly what you are paying for 5 years (terms less than 5 years are often pointless buying)