When Should I Remortage?

blacksta

I came of out of fixed rate roughly under 4 years ago and have automatically reverted to the BOE + 2.15%. Hence my mortgage rate is about 2.65%. I fully understand that rates will not forever remain low. I would like to know when i should be planning to ditch mortage while wave is still high. My projections dictate rates may remain low until Late 2013 ( dont ask how i arrived at the projections).

At the moment i am using the savings to clear all other non secured debts and making sure i am in a stronger position when the low rate wave crashes. At the moment i not sure of the need to ditch the current low rate for a mid 3 or 4 % ( I might be wrong) - Please help.

Gary123456790

Hi,

Much like choosing fixed or tracker, you are in the area of personal choice. It sounds to me like you are sensibly making good use of the reduced payment to clear other debts - this is very wise.

Once these are cleared then put the extra money into the mortgage along with the normal payment (on SVR you probably dont have an overpayment limit but check with the lender). This will reduce your LTV and give you access to better mortgage deals when you decide you need to change to a new mortgage product.

The SVR you are on looks to me very favourable to fixed and tracker deals currently available, so looks the right place to be now, but this is totally your choice to make (for better or worse as they say).

Gary.