fixed rate coming to end can you help

almond

hi
had a fixed rate with abbey 70k interest only £325 a month
for five years , it runs out 2nd feb and i asked if i don;t do anything what will i be paying
4.24 £248.30 a month
I can get fixed for 3 years 4.99 with £500 fee
I am not sure when i want to sell to down size and be mortgage free
but when i got the fixed rate 5 years ago i would not take a tracker
(could cry now) because i remember the days under maggie when interest was up to 16%

It seems to make sense to me to not do anything and open a bank account to put the £75 a month savings in

just wonder if you agree
thanks
just afraid i make the wrong choice again

BoGoF

I'm surprised they let you continue interest only.

Why not continue to pay what you were paying and overpay - at least you're reducing the capital.

almond

BoGoF wrote: »

I'm surprised they let you continue interest only.

Why not continue to pay what you were paying and overpay - at least you're reducing the capital.

i am on interest only since it was the only way to buy ex hubby out
and if i gave house away i should have about 150k to buy one cash

what i am trying to work out is will i end up losing out ? the only way i can see this happening is if rate goes to 6%

sorry forgot ask why are you suprised they let me carry on paying interest only?

BoGoF

almond wrote: »

sorry forgot ask why are you suprised they let me carry on paying interest only?

5 years ago it was relatively easy to go interest only. These days lenders are looking for the capital to be repaid either by switching to a repayment mortgage or interest only with evidence of a repayment vehicle.