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

ineed

R_P_W wrote: »

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

3.8%, fixed for another two years, then I'll call and renegotiate.

iluvsaving

You should have been sent a letter from Halifax announcing their SVR increase. Might be worth looking around to see if you can get a better deal

tysfoot

yes i remember getting that letter, so do you think there are better deals than halifax. With product fees to pay etc it confusing if your saving money or paying out more in the long run. Do you have to pay a fee if i stay with halifax but go on another 2 or 5 years fixed

ineed

tysfoot wrote: »

yes i remember getting that letter, so do you think there are better deals than halifax. With product fees to pay etc it confusing if your saving money or paying out more in the long run. Do you have to pay a fee if i stay with halifax but go on another 2 or 5 years fixed

You shouldn't have to pay a fee to stay on a fixed rate, I didn't.

R_P_W

Tysfoot - as i said earlier the deals available to you will depend on what your LTV % is (i.e. the lower the better deals you will have access to).

I would speak to your lender and see what they have available if a fixed is what you really want. Although, personally I would only fix if the rate they offer is less than 4.5%. Otherwise I would stay on the 3.99% variable rate and overpay to mitigate impact of any future rate increases.

iNeed - fixing at 3.8% seems a pretty good deal to me so well done.

ineed

R_P_W wrote: »

Tysfoot - as i said earlier the deals available to you will depend on what your LTV % is (i.e. the lower the better deals you will have access to).

I would speak to your lender and see what they have available if a fixed is what you really want. Although, personally I would only fix if the rate they offer is less than 4.5%. Otherwise I would stay on the 3.99% variable rate and overpay to mitigate impact of any future rate increases.

iNeed - fixing at 3.8% seems a pretty good deal to me so well done.

Thanks, the guy I spoke to was very helpful. Maybe I caught him on a good day .

tysfoot

im just worried as iam sure every else is, is about the bank of england rate still being held at 0.5%
How much longer can this be held for?
It will become very expensive for so many people if they up it 1-2%, is this possible?

R_P_W

Well yes the BOE rate can be put up, it can be put up way above 1-2% which would have an impact on a lot of mortgage borrowers. However, there seems to be a view that BOE rates will stay relatively low for the next couple of years.

But, you will revert to the lenders SVR which can be changed by the lender if they choose to (you might have seen in the press in recent weeks that a number of lenders have increased their SVR rates).

It all depends on what is more important to you and your individual circumstances. So lets say for example, you stay on the SVR of 3.99%, and the best fix on offer is 5% - personally I would stick with the SVR overpay at the level you were paying on your fix. Keep a close eye on what other products become available over the next 1-2 years. In two years time with the overpayments you will hopefully then have access to the better rates because your LTV will be lower.

Three years ago I decided to fix with my existing lender again for 5 years. In hindsight I fixed at a higher rate than what the SVR was as I didnt really understand mortgages and my options at the time - the lender obvioulsy makes more money from you if you fix on a higher rate. Now I am moving house and buying property with my wife, I have a pretty hefty repayment charge too.

Simon_gloster

Halifax SVR is not linked to the boe base rate. It is set by them at their discretion.

However it does depend on what they estimate your home value at as this will determine the rates they can offer you.

It is not to say you can get a better deal elsewhere, also a new lender is likely to send a surveyor to value your home than use an index linkeld valuation (computer based val) like Halifax.

3.99% is their SVR today, however I m not sure if they brought that reversoonary rate in after your mortgage completed meaning you may be eligable for old terms which reverted to 3.00% above boe base rate.

tysfoot

R_P_W wrote: »

Well yes the BOE rate can be put up, it can be put up way above 1-2% which would have an impact on a lot of mortgage borrowers. However, there seems to be a view that BOE rates will stay relatively low for the next couple of years.

But, you will revert to the lenders SVR which can be changed by the lender if they choose to (you might have seen in the press in recent weeks that a number of lenders have increased their SVR rates).

It all depends on what is more important to you and your individual circumstances. So lets say for example, you stay on the SVR of 3.99%, and the best fix on offer is 5% - personally I would stick with the SVR overpay at the level you were paying on your fix. Keep a close eye on what other products become available over the next 1-2 years. In two years time with the overpayments you will hopefully then have access to the better rates because your LTV will be lower.

Three years ago I decided to fix with my existing lender again for 5 years. In hindsight I fixed at a higher rate than what the SVR was as I didnt really understand mortgages and my options at the time - the lender obvioulsy makes more money from you if you fix on a higher rate. Now I am moving house and buying property with my wife, I have a pretty hefty repayment charge too.

Thank you very much for that advise, i think i will take your advise and overpay.

One more thing. My Fixed rate ends in September and then will go on SVR, i have had lots of work done to my house within the past 6 months, Kitchen, extension, double glased windows etc so i will need a re-valuation, will halifax send a surveyor if i was to stay on the SVR rather than looking else where and paying a fee