view wanted on 2 mortgage options please.

davemorton

Okay, I hate making decisions, but think I have made my mind up, but would like other peoples views on my re-mortgage options please. Just really to see what other people thoughts are.
2 options are as such.....
Option 1: 4.49% fixed for 4 years,
Option 2: 3.99% fixed for 2 years.
Both are fee free to arrange.
Option 1 will be the easiest to sort out as they are my currrent lender, so just a case of swapping it over, option 2 would be a new lender.
Mortgage is for £130k repayable over 25 years, current income is approx. £32k.
One other thing I need to consider, is that I will be having a 10% pay cut in just under 2 years time, so will reduce the amount lenders will give me when the time comes to remortgage again.
Opinions please.

opinions4u

Instinctively I'd say option 1.

But:

One other thing I need to consider, is that I will be having a 10% pay cut in just under 2 years time

what are the go to SVRs at present?

QBSBuck

Whats your current mortgage deal? Whats the SVR? Pre-empting some questions from more knowledgeable people here, so that you can get potentially get a better answer.

davemorton

On my current mortgage, I am stuck on 5.99% for another 5 years (was a ten year fix, with no fee's to get out after 5 year, which I have just reached)
Option 1 is Halifax Homeowner Variable Rate, currently 3.990% (I cant seem to find if it set to a certain % above base rate)
Option 2 is 3.39% above Barclays Bank Base Rate,
currently 0.50% so 3.89% currently.

davemorton

My current lender (Halifax) value the house at £134K, I think a realistic value is £150 - 160K, and an optimistic valuation would be about £165-170K.

Thrugelmir

davemorton wrote: »

My current lender (Halifax) value the house at £134K, I think a realistic value is £150 - 160K, and an optimistic valuation would be about £165-170K.

Given your mortgage is £130k. The value of the property is critical to the options open you. Suggest you ascertain this before searching out the deals.

dimbo61

I would go for the option 1 at 4.49% and overpay every spare penny you can while on a higher rate of pay
Your LTV might be in the 75% or even 60% in four years time

Essex2201_2

I'd go for option one- interest rates are set to hike in the next 2 years - better to be safe than sorry!

kingstreet

davemorton wrote: »

My current lender (Halifax) value the house at £134K, I think a realistic value is £150 - 160K, and an optimistic valuation would be about £165-170K.

Pay for the inspection. It's not expensive and the Halifax desktop valuation system is notorious for its valuations.

If this takes you into another LTV band, you may get a better deal. Check what's on offer first, of course.