Fix my S.V.R. ???

steve33556

Hi all
:mad:
I really can't decide if I should fix my 2.5% SVR from Lloyds its capped at 2% above base rate as its a pre 2007 deal. If I remortgage due to current circumstances I will have to stay with Lloyds and there are only two deals available to me. I am considering fixing this sub account for 2 years at 2.39% (this is the best rate I can get) the other is a 4 year fix at an even less competitive rate. However if I did fix this sub account after the fixed deal I will loose the pre 2007 SVR and revert to the more expensive variable rate which is currently 3.99%.
So should I protect myself against rate rises or leave this sub account on the pre 2007 SVR ?? Any advice will be very welcome.

Thanks for looking at my post.

Thrugelmir

You need to take into account the whole term of the mortgage remaining not just the next 2 years. Once you lose the 2% above base there's no guarantee that you'll ever get it back.

So should I protect myself against rate rises

Only real option to protect yourself is to overpay and borrow less. Rates ultimately will rise. How high who knows?

steve33556

Im not in a position to overpay my mortgage at the moment, however in a years time my partner will have finished at university and has a guranteed job after she completes her degree. At this point monthly mortgage payments (at current rates) will represent 13% of our joint gross monthly income. I will loose the 2% above base rate if I fix. So to fix now or not ???