IM STUCK. Fixed term coming to an end, what should i do

tysfoot

Hi.
My halifax 2 year fixed rate is coming to an end very soon and im a little confused

I have a mortgage of 85000 and currently paying £486 but have read on my detals when i took the mortgage when the fixed rate ends i will be on a tracker rate and will only pay £347 saving £139 a month.
Now i know the bank of england keep holding these interest rates but for how much longer ?

What i was thinking to do was to for the tracker rate of £347 and overpay on my mortgage by about £200 or what ever i can afford month by month

I want to pay a little less interest each month but would like to overpay so what do you think is the best option for me in my circumstance

Thanks for your time

harvey115

Can you give details on the following:

Your Fixed term Interest Rate
Interest Rate post fix (the tracker you mentioned)

tysfoot

im currently on a 2 year fixed at 5.89% which is to end.
On the paper work it just says after 25 months(which is my fixed term lenght) the rate shown in part 1 (meaning my 5.89%) will end and assuming rates do not change your new payment will be £365

I didnt read this untill now.
Does that mean i will automatically leave my fixed term, it doesent say what product i will go on to. i just presumed a tracker

harvey115

Your KFI should give details of which type of rate you will go onto after the fix, whether it will be a SVR of the lender or some sort of a tracker deal.

You need to find information on your post fix rate from your KFI.

R_P_W

I would imagine that you will revert to your lender's SVR %. Which depending on the lender might mean you pay less than you did on your fix.

It is my understanding (and happy to be told I'm wrong) that the lender can increase or decrease their SVR % at their own discretion? So they could put the rate up even if the BOE stays at 0.5%.

You need to contact your lender, ask them what the rate is and what the payment will be. Seems a sensible idea you suggesting to overpay what you can afford. Just double check that you are able to overpay on your particular mortgage product as some have limits and you can incur charges for exceeding them.

Depending on your LTV % though you might want to look at other lenders and compare what the costs might be.

tysfoot

Thank you.
This is my first mortgage so everything is very new to me still.
I didnt even know you could change lender untill u said and iv e done a little compare. Wow nearly £1000 just to get a new deal. it feels like im just throwing money away

R_P_W

It is true that a vast majority of mortgage products our there involve some arrnagement fee, but you have to look at the whole lift cost of the product rather than just an initial cost upfront.

If you are able to get a rate that is 1% lower then it wont take long to make that £1000 make in saved interest! I'm not saying you should definately do it because I don't know your specific circumstances, but it doesnt cost you anything to look.......

tysfoot

it will 3.5% variable rate after my fixed rate ends

ineed

I've got my mortgage with Halifax, first time mortgage like yourself . And also like you my fixed rate is due to end soon, in August. I wanted to stay on a fixed rate so I called them up today and it was negotiated in less than ten mins, paper work on its way to me and I'll be paying £20 less a month on my new rate. It might be worth looking into, I wanted the peace of mind of staying on a fixed rate.

R_P_W

Do you mind if i ask what fixed rate they offered you?

beecher2

tysfoot wrote: »

it will 3.5% variable rate after my fixed rate ends

It may say 3.5% on your KFI, but Halifax's SVR is now 3.99%