Stay on SVR or fix?

immy

Rates on the rise so am considering fixing since my SVR now is on par with the the top 5yr fixes and looking to go higher next year.

Options are
2yr fix at 1.80% with new provider
5yr fix at 2.25% with new provider
or stay on SVR at 2.24% for now and fix next year
Balance 150k


My current providers rates for fixing were not competitve, and are working out 2.4k worse off over the 5 yrs.

stevenhp1987

Out of interest, who has a svr of 2.24% as that seems really low for a typical svr?

YHM

Sounds more like you are on a base rate tracker + 1.49%....

Why don't you sit down with a broker and let them find you the best deal available to you

getmore4less

If it is a base+1.49% tracker think carefully before giving that up.

£150k will be in the fee/no fee range so both need looking at.


spreading info over multiple threads is not helpful to yourself.
https://forums.moneysavingexpert.com/discussion/5880051/remortgaging-pitfalls
https://forums.moneysavingexpert.com/discussion/5880260/house-valuations

Are you still with the post office mortgage?

immy

We took out the mortgage in 2008 fixed for 5yrs at 5.34%, which then reverted to SVR of boe rate + 1.49%. This was with the post office (bank of ireland).

I remember several years ago, folk with similar mortgages were getting their base rate inflated due to the low boe rate but i think our small print on our agreement worked in our favour.

So why would it be beneficial to stay on this deal?

getmore4less

It's a good rate tracker and if margins on fixes go back to higher levels the next fix could be above the tracker you have.

Trackers stand up well against fixes over the longer term where rate bob up/down and where there is a down ward trend but if we are moving into a longer period of upward rates leading with good fixes may be the way to go.