fix or not

AnotherJoe

webbit wrote: »

ive got 8 years 9 months left on my tracker 0.49% above the base rate 38k left (£365 a month)
We want another 25k, i can get 2.49 on a 10 year fix on 11 year term (£217 a month)
..think i will keep current term as worst case interest rate goes to 5% it would add £85 to current deal which would still be in our reach but i very much doubt it will get anywhere near there, but in the mean time over pay current deal by £50.

I suggest you dont overpay the current deal. Putting that money into your pension would return many times what you are saving on interest payments on the mortgage.

Debtslayer

If I were you id keep current mortgage and deal and raise the additional money required through other means rather than adding to your mortgage. You say you need 25k for new kitchen, bathroom, boiler. A lot of companies that do kitchens and bathrooms offer 0% deals now and if not you'll probably be able to get 0% credit cards or cheap rate on a personal loan. Iv it were be I wouldn't be adding to mortgage especially a small one like yours with that good an interest rate

getmore4less

the potential problem with alternate borrowing is the terms may be shorter(or problem renewing a 0% card) making the payment requirement higher and OP may not have the cashflow to cover.

getmore4less

webbit wrote: »

ive got 8 years 9 months left on my tracker 0.49% above the base rate 38k left (£365 a month)
We want another 25k, i can get 2.49 on a 10 year fix on 11 year term (£217 a month)
..think i will keep current term as worst case interest rate goes to 5% it would add £85 to current deal which would still be in our reach but i very much doubt it will get anywhere near there, but in the mean time over pay current deal by £50.

no overpayments if planing to borrow more why overpay 0.74% to borrowit back at 2.49%.
Should not have been overpaying anyway as you can get better rate savings and other options like pensions for longer term.

Almost certainly going to be better to take additional borrowing and over pay that if any of them.