C & G fix finally ending

MissE001

Hi all - I've had a fixed rate since 2008 at 5.69% - due to end in June and I should move on to SVMR which is 2.5%.

I'm just looking for some advice on when C & G are likely to contact me to advise of new payment (and probably try and sell me a new mortgage....)

Thanks!

dimbo61

I am sure that C & G will send you a letter telling you of your new mortgage payment in the next few weeks or maybe a phone call.
Now 2.5% is a very good rate and unless you have a very good LTV ( loan to value) you may just want to drop onto the 2.5% rate and if possible overpay every month BY keeping your mortgage payment static!!!

MissE001

Thanks dimbo - I've been looking around.....my LTV is about 70% (if that's the right way round - need about 70% of value) and best rate I can see is 2.49% but with £995 arrangement fee.

Hoping I can do just as you suggest and keep paying the same amount. If I'm not allowed overpayments, probably put the difference in an ISA until overpayments are allowed. I'm a bit impatient - just want to know how everything's going to look after June!

Thanks again

Thrugelmir

Unlikely you'll better this rate.

Overpayments are allowed.

I'm sure C&G will be grateful for the funds.

MissE001

Thrugelmir wrote: »

I'm sure C&G will be grateful for the funds.

Thank you! Hadn't thought about it like that!!

magpiecottage

If you stay on the SVR, you will pay 0.01% more. That is a pound a year more interest for every £10,000 a year you borrow (or 8½ pence a month)

So if, for example, your loan is a million pounds, you will pay £100 a year more.

By that reasoning, if your mortgage at least a million pounds andthe fix is at least ten years then you will gain.

On the other hand if you come off the fixed rate, you are vulnerable to increases in the interest rate.

Is it worth it? Well that depends on how you feel about the certainty of what you will pay.

In terms of probability, C&G are only offering to lend you the money at a fixed rate because somebody has decided to lend it to them at a fixed rate. That somebody will probably be more experienced in understanding the money markets than you are and reckons they will make more by lending it at a fixed rate over that period than by lending it at a variable rate.

MissE001

Thanks magpiecottage - and I'm a bit confused now, sorry!!

My fixed rate is ending and the terms of the fixed rate were that I would move to the SVR when it ended. At that time (5 years ago), the SVR was 7%. It's now 2.5% (not fixed) and I should be moving onto that when my deal ends in June.

C & G haven't been in touch at all yet hence my post asking when they are likely to. Once I know for sure what my payments will be on the SVR, I'll be able to shop around - but think that the arrangement fees may outweigh any lower interest rate.

My head hurts now