Should I Fix Rate now??

DudeBear

Hi Everyone

First time poster so please be gentle! I am 2 years into my mortgage and its now time to fix the rate again for follow the base rate.

Mortgage company have offered me a 3 year fixed rate at a monthly payment I can afford, if I go with the variable rate its making things very tight and if the rate goes up I'm in trouble.

Sounds an obvious thing to do is to fix the rate for 3 years at what I can afford. Is there anything I should watch out for??

Thank you

R_P_W

What is the fix rate that is ending?

What is the variable rate it reverts to?

What fixed rate are they offering you?

What is your LTV%? What is your credit history like?

DudeBear

Thanks for the questions

What is the fix rate that is ending? Not sure at work, paper work at home

What is the variable rate it reverts to? 5.99%

What fixed rate are they offering you? If I overpay £350 now it brings my LTV down to the next bracket (85%) - 2 years fixed term at 4.59%, 3 years at 4.79%

What is your LTV%? What is your credit history like? Current LTV is 86% but if I overpay it brings me down. Credit history excellent, no debts or loans etc

Thank you

ess0two

5.99 variable you sure?

DudeBear

To quote the mortgage company letter "... you're happy for your mortgage to just continue, then your interest rate will change on xx to a variable rate, curently 5.99%, please refer to your original offer for details"

I can't afford their monthly re-payment on the above option so am looking to a fix rate again. Thanks

sammyjammy

5.99 is the rate it would have been at the time you took the mortgage, not necessarily the same now. Who is your lender? You should be able to find out current variable rate on their website.

Wh05apk

Accord?

They are currently 5.99%

Personally I don't see rates rising for a long time, 3 years could be just as rates are rising, so new deals may be far hgher then, I would look short term - 2 year tracker to save moey, or long term 5 year fix for security, to me a 3 year fix provides seurity over a period when there should be little need for it.

DudeBear

Thanks everyone - I have contacted my mortgage brooker who did my initial mortgage two years ago.

Will meet with him this week for advice. Thanks

dimbo61

Who is your lender ?
Are you reading paperwork that is 2 years old ?
If you are nearly 85% now could you overpay a little each month for the next 3 years ( while on the 3 year fix !!) and you would have a LTV of 75% and get the best deals in 3 years.

Just an idea !