To Fix or Not to Fix?

Ste_Hyatt

Hi All

I have 53K left on mortgage. House value 65K. FIxed term ending soon. I was wondering under current interest rates would it be better to go into a 2 year tracker mortgage or stay with being on fixed? I pay £299 month at moment. Current rate 5.19%.

Thanks
Ste

edinburgher

There are definitely cheaper trackers, but you don't have a lot of equity. Making a few assumptions, the best I could find pretending to be you was a Barclays 2 year fix at 2.49% with no product fee (£238/mth).

Ste_Hyatt

Thank you for the reply. I will take a look at Barclays.

edinburgher

www. google.co.uk/compare/mortgage (remove the space after the first full stop) is good to play about with, you can experiment with different durations etc.

That said, approach a free whole of market mortgage broker to ensure that your 'cheapest rate' is actually the cheapest. My broker couldn't beat our rate, but they were able to match it + £750 of incentives from the lender :beer:

getmore4less

If you can find some cash to get your LTV under 80% that will open up more options. if you can't then planning a deal to need a change when you are under the 80% is worth considering

With a mortgages around that size fees can make a deal no use even though the rate looks good.

28 year term is a long one when you do go to a lower rate consider overpaying at least upto your current payment.

getmore4less

Using that 2.49% rate paying £299 in 2 years you owe £48354 LTV under 75%
(don't see that rate on Barclays site.)

laurasavon

What is the SVR you would drop onto? Don't forget if there is a product fee of a couple of thousand to fix in for two / three years it's quite high as a percentage on a small mortgage