What to do after our first fixed rate??

ruthb2008

We bought our first house almost 2 years ago, and are coming to the end of the 2 year fixed rate. I know that usually the best (cheapest) option is to take a follow on deal with your current lender.

However, money is not often spare and we do try to plan what we having coming in and going out. With the current talk of mortgage rates rising, is there some merit in paying a little more and actually taking out a new fixed rate mortgage to allow us to more easily plan our finances?

If we move to a variable mortgage, what is the liklihood that rates will shoot up, leaving us unable to afford our repayments?

I'm a complete novice when it comes to this, so any thoughts would be greatly appreciated.

Ruth

justcat

Did you use a broker? If so, they will usually contact you before your fixed rate is up to go through options.

If not, I would recommend you use a broker. No one can guess when or how much the rates will go up, but they can help you get in the best position for now (and hopefully the future).

ruthb2008

justcat wrote: »

Did you use a broker? If so, they will usually contact you before your fixed rate is up to go through options.

If not, I would recommend you use a broker. No one can guess when or how much the rates will go up, but they can help you get in the best position for now (and hopefully the future).

Hi, yes we used a broker. He has been back in touch now and has just said "often the best option is to take a follow on deal with Nationwide as this is a simple process and removes the need to switch to a new lender." I could always pose the question to him and see what he thinks!

justcat

Yes, go back to him and ask. He might be right but it's worth a look at your finances.

I would have thought so anyway.

getmore4less

WHat they are saying look at what the current lenders retention offers, they will have similar product(fixed if thats what you want) to any new lender as well as the do nothing option of the follow on rate.

ruthb2008

getmore4less wrote: »

WHat they are saying look at what the current lenders retention offers, they will have similar product(fixed if thats what you want) to any new lender as well as the do nothing option of the follow on rate.

I'll ring my current lender to find out what their offers are, and then get back in touch with my broker to see how that compares to the wider market then. I'll ask for his thoughts on fixes too.