Fixed rate ending April 2013

hulahoop09

Hiya

Me and my hubby took out a fixed rate (5.79%) in April 2008 for 5 years with Halifax. House was valued at 100k (now they dont seem to be selling for 92k around the area) and we took out mortgage for approx 80k. We had a payment holiday when on maternity & wedding leave so a small portion is on SVR already. We used to pay approx £499pm before payment holiday and now pay approx £526pm. After payment holiday they sent letter advising when fixed rates end all mortgage will be on SVR (at that time 3.50% now 3.99%) and we will pay approx I think it was £100 less than what we do (I think that will now be approx £70 less with the increase in SVR).

When our fixed rate ends obviously 4 months time maybe big changes but I am wondering if best to stay on SVR or if we should fix again? Atm I think our mortgage balance stands at approx 75.4k.

If we hadnt taken out the fixed in 2008 we would of saved a lot of money but it was before recession hit and also our first mortgage together so wanted to be 'safe' so to speak. Lol.

Thanks!! :beer:

kingstreet

Wait until you are closer to the expiry of the fix, then see what customer retention products Halifax has for you to consider.

Once you have them, look at potential remortgage product options and you'll have a decent idea of the right route to go.

Only you can decide if fixed or variable are right for you though.

hulahoop09

Thanks! We ideally would like to stay with them as no issues and when my credit was bad (still dented) the other lenders didnt want to know and also we are on a little less wage then we were as I am back at work on reduced hours due to having a baby.

Can I ask in a situation like this would it be likely that we could take some cash our so to speak for home improvements or is it a case of waiting til a lot more is cleared off the mortgage before we do this? We would like to do this but at the same time dont want a massive increase in payment and also atm our mortgage will be paid off in the year of my 50th And it isnt an essential it just means the house can wait for treats for longer! Lol.

Thanks again!

kingstreet

Further borrowing will be subject to affordability and credit checks and to the amount of equity you have in the house, so impossible to give you anything other than a guess at this time.

hulahoop09

Okey doke thanks! Not sure what equity is 100% lol. I know house was valued at 110k and we took out 80k mortgage (rest was cash already in the house). Also I was glad I passed a credit check then as my credit wasnt great so wouldnt want to risk another credit check incase I failed and then we couldnt get a mortgage as we would screwed then as would have to sell I am guessing!

The kitchen and bathroom repairs will have to wait for the future! Lol. And the possible loft conversion required for future will wait that bit longer!! Haha.

Thanks again.

kingstreet

Equity is your stake in the property.

If you have a property worth £100k with a £70k mortgage your equity is £30k, 30% of the value.