We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Ditch my fix? What to do ??

Options
BostonLicker
BostonLicker Posts: 2 Newbie
edited 20 November 2012 at 10:05AM in Mortgages & endowments
Hi Chaps, been thinking this over for a few days, but i always value other people's opinions!:)

In a nutshell, im thinking about ditching my fixed mortgage with the Woolwich and moving to another bank with a lower fixed % rate, with the overall aim of overpaying on the mortgage thus reducing the overall term.

I'm not concerned with the potential exit fees i will have to pay to move.

The main problem i have is do i switch to a lower rate now (3.29%) or do i wait out the current deal which still has the best part of four years to run at 5.45%. At first glance this seems a no brainer to move right? Heres the twist...

At the end of my current deal which ends in around 4 years at 5.45%, the mortgage reverts to a variable rate which is 1.99% above BBBR, which would make it 2.49% in todays money.

I know its impossible to predict base rates for 4 years time, but what would you do?

Do i see out my presented fixed deal with the hope the base rate is still low in 4 years time OR do i ditch the fix and go on a cheaper deal now?????

All comments are much appreciated.

Regards Bob

Comments

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.5K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.