2 year tracker nearing end - what next? Move to SVR?

AndyLiverpoolFC

I am nearing the end of a two year tracker which is currently a whopping 5.29% above the base rate (so, 5.79%). At the end of this two year period, the mortgage company will move me to their standard variable rate which is currently a more manageable 4.24% (presumably 3.74% above the base rate).

The new SVR will save me around £200 a month so appeals but is this the sort of thing I should stay with?

Are my alternatives to shop around and try and find myself a better deal (be it fixed or variable)? The only thing that worries me is that I can't seem to find many deals better than this 3.74% SVR.

Is the done thing usually to switch at the end of a two-year deal? Are you even allowed to stay on the SVR?

I'm really lost - any help much appreciated. What would be the best thing for me to do?

Andy

Dave_Ham

Hi Andy,

You can stay on the Santander/Abbey SVR, but depending upon your loan to value Santander may even offer you a new better than SVR deal.

Depending upon the LTV, there are likely to be better products out there but depends upon your circumstances and LTV will depend the specifics.

Hope this makes sense

AndyLiverpoolFC

My loan to value was 90% when we took out the loan and is probably now 85-90% so still very high.

Thanks.

Dave_Ham

It does not hurt to ask them, although sitting on the variable for a few months may be the cheapest monthly cost for a littel while.

They will have an index valuation on your property so can quickly tell you with 1 phone call and no major questions. If you are on interest only with them, then all bets are off and you will just have to sit on the SVR for a long time if you cannot get onto repayment and save yourself a phone call..