Bank of Ireland mortgage SVR - should I fix?

retro1981

Do I fix for 5 years or stay on the Bank of Ireland SVR? Any advice appreciated!!

- Mortgage £84k, interest only, I make capital payments as & when I want/can
- At 2.99% my payments were £208/month
- New rate of 4.49% will be £312/month
- I cannot switch lenders as I am in negative equity
- BOI will let me switch to a fixed rate, with no valuation, fees or requirement to change to repayment
- 2 & 3yr fixed @ 4.55%, £316/month
- 5yr fixed @ 4.99%, £347/month

I have had various mortgages for the past 11 years, I have never believed in fixing; I never wanted to risk paying more than I could have. But could it be worth fixing for 5 years? I can’t see the SVR dropping, if anything is it not likely to go up when the base rate eventually increases? It would be an extra £35/month @ 5yrs = £2,100. I hope to be out of negative equity by that time (2017), but who knows what way house prices will be!

BOI reduces my monthly payment instantly when I make capital payments, so I understand this £2.1k will be less.

Or do I bide my time, hope that BOI keep these fixed offers for the near future, and if the base rate increases, I quickly contact BOI to do a switch?!

It’s all a gamble really :-/

motch

My gut instinct (for me) would be the 5 year fixed at 4.99% still being able to be on interest only for the next 5 years would be handy. my plan would be to reduce the balance by quite a few grand over the next 5 years though.

jaysb

I'm an ex Bristol & West mortgage that was recently sold by BOI to The Mortgage Works. So BOI are following TMW and lifting the SVR. Thankfully at this time I could remortgage (Nationwide) but if it happened 12 months ago, I would have been in a different position (unemployed) and unable to remortgage.

Hope your situation improves and you can then remortgage elsewhere. for my view - I would stay on the higher SVR and move as soon as I could remortgage - sod the BOI