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Difficult decision
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bmthmark
Posts: 297 Forumite
My mortgage fixed rate is coming to an end so need to decide what to do.
Property value: £330,000
Owe: £205,000
My current lender (Lloyds) will allow me to sign up to a new deal May 1st but if I want to go elsewhere I have to wait until July 31st (unless I want to pay redemption penalties) .
The dilemma I have is that Lloyds will only be able to offer 2.19% fixed for 2 years or 2.84% fixed for 4 years with no booking fee. This seems ok as my current rate is something like 3.1%.
However HSBC offer 1.54% fixed for 2 years or 1.69% for 3 years but with a booking fee of £999.
I just don't know whether to stay with Lloyds and fix it for maybe 2 years - I can do this next week. Or wait until July but risk rates going up.
I'm thinking take the Lloyds deal and maybe start to overpay with the amount I would be saving each month, approx £100 difference to my current deal.
What are peoples thoughts on this?
Property value: £330,000
Owe: £205,000
My current lender (Lloyds) will allow me to sign up to a new deal May 1st but if I want to go elsewhere I have to wait until July 31st (unless I want to pay redemption penalties) .
The dilemma I have is that Lloyds will only be able to offer 2.19% fixed for 2 years or 2.84% fixed for 4 years with no booking fee. This seems ok as my current rate is something like 3.1%.
However HSBC offer 1.54% fixed for 2 years or 1.69% for 3 years but with a booking fee of £999.
I just don't know whether to stay with Lloyds and fix it for maybe 2 years - I can do this next week. Or wait until July but risk rates going up.
I'm thinking take the Lloyds deal and maybe start to overpay with the amount I would be saving each month, approx £100 difference to my current deal.
What are peoples thoughts on this?
0
Comments
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Rates will probably go up this year. You don't have to wait until July 31st to apply for a mortgage, you can apply now and have it start on July 31st.0
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MoneyGeoff wrote: »Rates will probably go up this year. You don't have to wait until July 31st to apply for a mortgage, you can apply now and have it start on July 31st.
Do you know if they will hold a fix rate for 3 months?0 -
I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
They'll honour it for at least 3 months, sometimes up to 6 months depending on the lender.0
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Thanks all, just chatted with an adviser. He said they will honour it for up to 6 months.
Good news for me0 -
Just to update the post.
I had a meeting with HSBC and have sorted my mortgage out.
I got a fixed rate of 1.89 for 3 years with no booking fee. The rate is much better than Lloyds and we were able to knock 5 years off the mortgage and still pay the same amount as Lloyds.
I don't need to pay any redemption charges as this starts when Lloyds fixed rate is finished.
Thanks for you help all.0
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