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New fixed rate or variable?
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I'd probably go on variable for a few months if i was in your shoes.
I had a meeting with a TSB account manager who said that they are just keeping out the market at the moment as they had already hit all their lending targets before this all happened so have no need to compete. Come the new year we might see them making more of an attempt at getting some business secured
Given the loan that you need to review is a smaller one you wont be massively impacted if rates improve but they are certainly a bit unattractive at the moment.1 -
JMA74 said:I'd probably go on variable for a few months if i was in your shoes.
I had a meeting with a TSB account manager who said that they are just keeping out the market at the moment as they had already hit all their lending targets before this all happened so have no need to compete. Come the new year we might see them making more of an attempt at getting some business secured
Given the loan that you need to review is a smaller one you wont be massively impacted if rates improve but they are certainly a bit unattractive at the moment.
I am tempted to go variable but worried that the TSB variable will just keep going up with each rise over the next few months to 7%+0 -
could do, but how much is that actually going to cost you? Even an extra 1% on a 20k loan is unlikely to be much more than £10 a month than you are looking at anyway. I'd still hedge my bets that they will offer something more competitive in the coming months.I am a Mortgage Adviser
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.1 -
I guess as you say it's not going to make a huge amount of difference on a small amount so I think I will just go onto variable and keep an eye on the market. I also plan to make some overpayments over the next few years to offset some of the increased interest.1
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so to update TSB fixed rates have lowered to 4.99 2 years and 4.59 5 years.
Worth fixing with either of these deals before possible Feb 2 rise?
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Given the relatively low amount I'd be tempted to go for the security of the 5 year deal and not having to worry about it again for some time (or pay arrangement fees). The likelihood is that rates will come down after peaking in the next 12 months but is always a gamble and the base rate will certainly be at 4.5% at some point.
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mdori003 said:Given the relatively low amount I'd be tempted to go for the security of the 5 year deal and not having to worry about it again for some time (or pay arrangement fees). The likelihood is that rates will come down after peaking in the next 12 months but is always a gamble and the base rate will certainly be at 4.5% at some point.0
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greyjoy70 said:so to update TSB fixed rates have lowered to 4.99 2 years and 4.59 5 years.
Worth fixing with either of these deals before possible Feb 2 rise?MFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5001 -
I'm currently contemplating similar... 3.69% variable or 4.54% fixed. Fixed is 240pcm more than now
My third option is to overpay my mortgage now to keep my cashflow at existing levels(this would require say 40k).
Taking an overly simplistic view, 240*12/40k = 7.2% which is too close to the average long term investing rate of return of 8%.
Not sure I'm missing something - ok yes my capital/interest payments will be different, but I am keeping the term the same, so it seems a good idea to drawn down a little.
My only thought is that I would only invest the £240 anyway so is there any point in the drawdown to overpay the mortgage at this time?1 -
I fixed with accord for 5 years at 4.58%, tracker was 0.39% above base rate for 2 years, surely that will end up higher than the fix due to the impending rate rises this week and again in future. My thoughts were just fix it for 5 and not have to mess about again in 2 years stressing over what is best. It's only £50 a month more than I'm paying now and my payrises over the next 5 years will cover that easily.1
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