Help! Two rates-thought I'd decided!

em_z

Thanks to some v helpful advice here I had decided to leave the Halifax SVR of 3.99% and move to the co op's 3.29% fee free 5 yr fix. I've got an appointment to see a co op adviser tomorrow so was digging out some info to take with me. I found my last mortgage statement only to find I actually have 2 products. I completely forgot about this!

I have £85,258 at 3.99% and £21,361 at 1.99% tracker (tracks the BoE rate). I've been trying to do the maths, but am struggling. On the surface it seems like I'd be better off sticking as I am rather than moving the whole amount to a slightly lower rate (£106,619 at 3.29%). The Halifax' 5 year fix is the marginally better than their SVR at 3.94%.

I'm really confused now and though I had everything decided! Can anyone advise me on this?? Thanks

Crashandburn

Difficult one to answer without knowing the term left on the mortgage but if you were to do the whole remaining balance over 20 years, then the rates work in favour of the new five-year fixed rate at 3.29% as you would have payments of £606 per month versus £623 per month by keeping the two products.

The other factor to bear in mind is that both rates at the Halifax could possibly increase with the bulk of the money at the peril of their variable rate.

The other option is to product switch with the Halifax for the larger portion of the mortgage thereby reducing the amount of interest you pay on this aspect whilst benefiting from the lower tracker for the smaller part.

I personally think there's no one single solution to this but whichever you feel comfortable with.

Good luck

em_z

Thanks crashandburn.
The remaining term is 38 years, but am overpaying to get this down. I did some sums and also concluded that the 5 yr fix with coop was better, but don't really trust my maths skills! Currently paying £435 a month, excluding the overpayment.

em_z

Anyone else got any ideas about this? Thanks.