Should I take out another fixed rate term or stay on SVR?

chelseasarri

Hi, I'm new to the forum and looking for some general high level advice...

I personally took out a 2 year fixed rate mortgage with Halifax in Sep 2015, which upon ending in Sep 2017 I decided to stay on the Standard Variable Rate as it was our intention at that stage to move quite soon and buy a new place with my partner & I together.

As we're getting married, we've put the house move back but having had a year of paying increasing SVR repayments I'm now thinking I should arrange a new 2 year fixed term to ensure we're getting a good deal for the short term until we come to move - feels like I'm just throwing money away. Realistically we won't be moving for at least 12 months, possibly more like 18 months, so any early repayment fees would be fairly low I'm guessing.

Any general advice on whether to arrange a new mortgage or stick with the SVR for another 12-24 months? I appreciate there are variables involved but hoping there's a clear 'best option' either way!

Thanks
CS

mdori003

I would fix at this stage if you've found a good offer. You can always port your mortgage if you sell?

LRmortgage

Or what about a tracker with no early repayment charges?

Depending on your LTV you can get somebody decent rates that are lower than fixed rates at the moment and give you the flexibility to get out whenever you want.

Potential BOE Interest rate rises will need to be factored in, however could be an option for you.

Peelerfart

Or fix for two years and overpay,if allowed, to the SVR amount.
Whatever you do, don't stay on SVR if it's your plan to do as you've detailed.

Mortgage_Adviser

As mentionned above if you can get a tracker with no/low arrangement fees you can save money comparing to a high eearly repayment charge.


If you can not get a tracker but it may be a year or so until you sell it may be a matter of comparing the rate of the fixed mortagge plus early repayment charges and SVR.


So if you can get a mortgage with 1.5% rate and early repayment charges of 1%. In a year it will cost you 2.5% (plus any fees)
If SVR is say 5% you may still be better off even after paying early repayment charge when time comes.

chelseasarri

Thanks everyone for your replies and advice, much appreciated.