Fixed rate coming to an end

Chrisw2214

Hi all very new to this stuff looking to get some advice I have a mortgage on one fixed rate deal that ends in march but I borrowed some more where I moved home and my other fixed rate deal comes to an end in September should I brave the storm of going to a svr on my mortage until September then tie both my amounts in together. I may get a better deal on remortgaging the house on the whole amount as I can shop the market a bit more but if I stay with my current provider I'm limited to there rates and best fixed deals. I also think I may be better off as I will only have to pay once for a mortage arrangement fee rather than paying in march and again in September. Does this make sense to you money savvy people
Chris

getmore4less

Why not provide some details of your current mortgage and sub accounts.

Edi81

How about a tracker?
Who is the mortgage with? What customer retention deals are they offering?

Chrisw2214

So I'm currently with santander on a fixed rate of 2.99% I belive and my 2nd fixed rate that comes to an end in September is 3.99% was hoping to save a bit of money on my monthly repayments my mortage is around 165k mark and my house valuation according to zoopla is 333k I know these things aren't always accurate but just using as a rough guide. I would rather go on to another fixed deal as my monthly budget is quite tight

EnterUserName

Are both of your mortgages with Santander?

My only question given your budget is tight is, what happens if interest rates increase between now and September? Could you cover it?

Have you thought about getting advice from a mortgage broker?

getmore4less

how big is each bit?

Chrisw2214

So one part is 44k the other is 125k so total is 169k sorry not 165k as I said earlier . Both parts are with santander as it's my understanding you can't have two mortgages on one property with different providers. I have spoken to a mortage broker who seems keen to get me to keep it as two part's running as he said my ltv rate is sub 60% and the deals don't get any better if your 50 %or 60 % I worked out once it's hits the svr it will cost me and extra £133 a month which I can budget for to brave the 5 months on svr as I'm hoping that by fixing both parts as one lump I will save on what I was paying every month which should outweigh the cost of being on svr for 5 months

fewcloudy

Chrisw2214 wrote: »

Hi all very new to this stuff looking to get some advice I have a mortgage on one fixed rate deal that ends in march but I borrowed some more where I moved home and my other fixed rate deal comes to an end in September should I brave the storm of going to a svr on my mortage until September then tie both my amounts in together. I may get a better deal on remortgaging the house on the whole amount as I can shop the market a bit more but if I stay with my current provider I'm limited to there rates and best fixed deals. I also think I may be better off as I will only have to pay once for a mortage arrangement fee rather than paying in march and again in September. Does this make sense to you money savvy people
Chris

You're not 'very new to this stuff'. You've moved home, and have several mortgage products by the looks of things. You just need to do the maths, and have faith in your broker.

SandraX

The only thing I would say is go for a fixed rate, ie certainty.

getmore4less

Chrisw2214 wrote: »

So one part is 44k the other is 125k so total is 169k sorry not 165k as I said earlier . Both parts are with santander as it's my understanding you can't have two mortgages on one property with different providers. I have spoken to a mortage broker who seems keen to get me to keep it as two part's running as he said my ltv rate is sub 60% and the deals don't get any better if your 50 %or 60 % I worked out once it's hits the svr it will cost me and extra £133 a month which I can budget for to brave the 5 months on svr as I'm hoping that by fixing both parts as one lump I will save on what I was paying every month which should outweigh the cost of being on svr for 5 months

still not said which is which.

With a 5 month gap what you could do is delay the first to change as late as possible and if Santander allow switching early do the second part as early as possible that will close the gap for next time.

Looking at Santander products
check what retention deals are available

looks like 2year fixes are something like 1.54% £999 fee and £1.89% £0 fee.

break even on those rates for 2y fix is around £143k(depend on term and payments)

Both your mortgage part are under that combined is over so there may be a benefit it combining.

For 5year 1.95% £999 fee and 2.19 £0 fee the breakeven is around £85k


with full details and the earliest you can switch products on a santander it will be possible to work out if sitting on SVR for a few months is worth it.

Chrisw2214

When you say which is which do you mean which rate goes with which part of the mortage? And what do you mean by breakeven sorry for asking so many questions