Motgage rates going up

charsun

HappyMJ wrote: »

In my opinion you aren't going to save much even if you switched to a tracker mortgage. Do you have redemption fees on your mortgage? Would you qualify for a 2 year tracker mortgage? You need enough income to support the amount you are going to repay and have money left over. It might mean you need a salary in excess of £30,000 to get the 2 years. You've got to borrow a minimum of £25,000 and it also prevents you from overpaying which isn't what you wanted.

The interest rate is higher with that amount. Try a maximum of £15,000 and set the term to 18 months instead. If you don't already have a super balance transfer card (which I may have wrongly assumed) then just get the interest free on purchases credit cards and put all your spending on that and pay the mortgage off using what you would have spent on the groceries and bills. It'll soon be clear. When interest rates do rise they'll only increase by small amounts to see what happens. A 0.25% interest rate increase would only cost you an extra £2.50 a month in 12 months time assuming you've got your balance down to £12,000 outstanding by that time.

no i don't have redemption fees, i can pay as much as i can off without any penalty. and no i don't have a super balance transfer card, ime not sure what that is . if that's all its goner go up with a 0.25% increase ive got nothing to worry about, what i might do is increase my over payments. thanks happy you've been a fantastic help to me, much appreciated :T

Landofwood

charsun wrote: »

no i don't have redemption fees, i can pay as much as i can off without any penalty. and no i don't have a super balance transfer card, ime not sure what that is . if that's all its goner go up with a 0.25% increase ive got nothing to worry about, what i might do is increase my over payments. thanks happy you've been a fantastic help to me, much appreciated :T

A super balance transfer card is a credit card that allows you to transfer money to a bank account. There are no fee-free cards that permit this. Alternatively, you can transfer the money to another credit card and then transfer the positive balance to your bank account free of charge. But then you don't need super balance transfer card to do this, so I have no idea why he is giving you such bad advice.

You seem I have accepted the good advice in this thread, so you should be fine.

getmore4less

just look at a no fee retention deal with your current lender.

they do tracker less than 1/2 your current rate and no need to change the term.(new fixed deals probably come with 10% overpayment limit)

Looking at loans is a waist of time.

New lower rate with current lender then free money from Credit cards if you can be bothered

Stop looking at the term 2 month either way is not relevent,

Total payment is all that matters in reality.