Fixed or Variable

Veste

My current fixed rate deal is about to expire (Nov) and I am considering whether to go again for a fixed deal or take a punt on a variable deal. As my loan is quite large (£289K) the monthly repayments are substancial in relation to my income, so my first intinct is to fix as at least I know what Im in for each month. But what if rates go down? Any advice to help me decide which route to take would be greatly appreciated.

MortgagesInc

It depends on your view on what interest rates may do - some trackers are actually lower than fixed rates currently, so if, as expected, rates fall slightly then you would benefit. However, if you think that any rate rises would put serious pressureon you financially then you should look to fix - Woolwich are dropping their fixed rates tomorrow, so they are looking very competitive.

pollyanna24

Just out of interest, how do you know Woolwich are dropping them tomorrow? Is there a website I can have a look at? I was wondering if Nationwide were thinking of dropping their fixes?

chelseablue

pollyanna24 wrote: »

Just out of interest, how do you know Woolwich are dropping them tomorrow? Is there a website I can have a look at? I was wondering if Nationwide were thinking of dropping their fixes?

Hi Pollyanna

Nationwide are scappring the £100 discount on reservation fees for exsisting customers and the fixed rates are unchanged

This link may be of interest to you: http://www.nationwide.co.uk/intermediaries/latest-news/existing_borrower_range.htm

pollyanna24

Thank you for that, that is very helpful.

I have been checking on the Nationwide website quite regularly to monitor their rates as I have a fixed rate mortgage with them which is up in April 2008.

Whenever I go and check, I click on "If you are Nationwide borrower coming to the end of your deal." This is saying (for 5 year fix as this is what I am intersted in) that the rate will be 6.13%. However, on the link that you provided, it would be 5.98%. I'm a little confused (don't take much). Obv the lower one would be great, but which one would it actually be?

EDIT: Think I've worked it out. The 5.98% is for if I'm buying a new house and 6.13% is for additional borrowing. Is that right? How about if I just want to refix my mortgage with them again with no additional borrowing?

herbiesjp

pollyanna24 wrote: »

Just out of interest, how do you know Woolwich are dropping them tomorrow? Is there a website I can have a look at? I was wondering if Nationwide were thinking of dropping their fixes?

Advisers get notification from the lenders beforehand - loads of emails that come in from different lenders

chelseablue

pollyanna24 wrote: »

Thank you for that, that is very helpful.

I have been checking on the Nationwide website quite regularly to monitor their rates as I have a fixed rate mortgage with them which is up in April 2008.

Whenever I go and check, I click on "If you are Nationwide borrower coming to the end of your deal." This is saying (for 5 year fix as this is what I am intersted in) that the rate will be 6.13%. However, on the link that you provided, it would be 5.98%. I'm a little confused (don't take much). Obv the lower one would be great, but which one would it actually be?

I think you would need the 6.13% as the 5.98% is for a house purchase. And you are not moving house just remortgaging.

On the NW website if you click 'getting a new deal' the 5yr fixed is 6.13% for 90% or less LTV

Hope that helps!

MortgagesInc

Hi Pollyanna

The 6.13% is the one that would apply - the 5.98% is for existing borrowers moving home.

lolarentt

Veste wrote: »

My current fixed rate deal is about to expire (Nov) and I am considering whether to go again for a fixed deal or take a punt on a variable deal. As my loan is quite large (£289K) the monthly repayments are substancial in relation to my income, so my first intinct is to fix as at least I know what Im in for each month. But what if rates go down? Any advice to help me decide which route to take would be greatly appreciated.

We're in the same situation and will probably go for a variable rate this time as looks like rates will be coming down, certainly unlikely to be any more increases in the short term.

Had a very good quote from ING
http://www.ingdirect.co.uk/home/about_our_products/about_our_products_mortgages.html

and also looking at Natwest (ref guarantee to beat remortgage quote) and Nationwide

chelseablue

MortgagesInc wrote: »

Hi Pollyanna

The 6.13% is the one that would apply - the 5.98% is for existing borrowers moving home.

I was right about something for once! lol

x

MortgagesInc

Wooolwich are also very good at the moment - depends on your loan to value etc but the are offering 5.92%, no fees and no redemption penalties