Mortgage Advice

garywood1982

I have been on a fixed rate mortgage at 7.1% for almost 5 years and this is due to end in January 2013.

I am unsure what to do next?? Do I go onto the variable rate whatever that may be or do I get another fixed rate for X amount of years??

koexelek

It really depends on what the SVR you will go on to is going to be

garywood1982

I dont understand the abbreviation my friend?? This is my first and only mortgage!! I just want to save on the £860 per month I am getting hit on!!

fallenwiccan

SVR is the standard variable rate. Get your mortgage paperwork out or contact the bank and they will tell you what their current SVR is that you will be transferred to when your fixed rate ends.

garywood1982

I will do. Apologies for my naivety.

ASI

It all depends on your attitude towards risk. Rate are low so you could fixed your payments for 2/3/5 years (so you know exactly what your paying) or just stay on the SVR or opt for a tracker (with or without penalties) and have a good look what's out there by waiting 6 months. A mortgage advisor should ask you relevant questions to help you ascertain what is important to you as this present time.

You may wish to remortgage where you get free valuation and legals - quite a few deals out there but it depends on 1) equity in your property 2) what your property is worth now 3) what your credit score is like 4) if you have a regular income which can be verified.

**be vary of the arrangment fees**

You should be able to find a competitive deal. I'm stuck on a five yr deal until June 2014 at 4.89% so cannot wait to shop around. Hopefully rates should remain stagnant until then.

Hope it helps!

garywood1982

Thanks ASI. You have been the most helpful in answering my question and it has made sense to me. I didnt really know where to start but this has given me a good idea now. I'm getting fleeced at the moment, that is for certain so hopefully I can get my payments down and go on a few holidays rather than pay YBS!!

Thrugelmir

garywood1982 wrote: »

I'm getting fleeced at the moment, that is for certain so hopefully I can get my payments down and go on a few holidays rather than pay YBS!!

Worth using so the windfall to reduce your mortgage balance quicker as well.

Interest rates aren't going to remain long forever. So make the most of the saving today for longer term benefit.

ASI

Ex- Mortgage Advisor and now teacher! Good to see I haven't lost my touch

ASI

Agree with last post. Put money away for rainy day or have a mortgage which allows you to over pay. Mine has a 10% overpayment facility. I've used it to make reductions... even small amounts of £1500...it's made a difference.

garywood1982

Yes I see where you're coming from on this. I think just having been hammered for 5 years that I deserve a bit of luxury for the next 5. Seriously though, I will consider the options you have all mentioned and speak to the bank tomorrow to get more advice.