Fix rate ending in October: what to do

MigsyBigsy

Hello all,

Advice on the following would be very much appreciated:

My 5yr fixed rate with Barclays is ending in October, currently at 2.15%. At the moment I have around £27,000 remaining. Monthly payments are £430 but i overpay £1000 each month.

Just did a rough calculation that by the time the term ends I would have around £15,000 remaining. 

What mortgage products should I be looking at? not going for a 5yr.

thank you in advance for your replies.

Miguel

Edi81

At that low value and amount of overpayments I’d look at reverting to SVR at the end. Less hassle all around. 

amateur_house

I have a fixed rate 1.99% mortgage ending in February with £11,000 outstanding, (7 years left on the original mortgage term). I've just re-mortgaged to a 2 year tracker at 4.39%, the SVR is 6.29% so it seemed a no brainer - no arrangement fee, no early payment charge and unlimited overpayments.

I would look at what your current lender offers - if they have anything lower than the SVR it might still be worth switching.

grumiofoundation

MigsyBigsy said:

Hello all,

Advice on the following would be very much appreciated:

My 5yr fixed rate with Barclays is ending in October, currently at 2.15%. At the moment I have around £27,000 remaining. Monthly payments are £430 but i overpay £1000 each month.

Just did a rough calculation that by the time the term ends I would have around £15,000 remaining. 

What mortgage products should I be looking at? not going for a 5yr.

thank you in advance for your replies.

Miguel

As above would look for something other than SVR.

One point to note is you can get higher interest than 2.15% in savings accounts, so one option would be to stop overpaying and save instead (can always pay off lump sum in the future - obviously this assumes you won't just spend the 'overpayments'). May also be an advantage to actually have a slightly higher mortgage when come to remortgage options as i believe some lenders have minimum loan amounts.

GiantTCR

October is far away. I wouldn't worry until June/July

propertyhunter

grumiofoundation said:

MigsyBigsy said:

Hello all,

Advice on the following would be very much appreciated:

My 5yr fixed rate with Barclays is ending in October, currently at 2.15%. At the moment I have around £27,000 remaining. Monthly payments are £430 but i overpay £1000 each month.

Just did a rough calculation that by the time the term ends I would have around £15,000 remaining. 

What mortgage products should I be looking at? not going for a 5yr.

thank you in advance for your replies.

Miguel

As above would look for something other than SVR.

One point to note is you can get higher interest than 2.15% in savings accounts, so one option would be to stop overpaying and save instead (can always pay off lump sum in the future - obviously this assumes you won't just spend the 'overpayments'). May also be an advantage to actually have a slightly higher mortgage when come to remortgage options as i believe some lenders have minimum loan amounts.

Remember to factor in any income tax you pay on your savings - if you aren't already maxxing out your ISA allowance each year. Still, the point stands that there are interest rates of 4%+ now. 

20vt-rs

Do you have any savings or emergency fund? It might be worthwhile looking at using that to clear the mortgage, and then putting the whole mortgage payment back into savings for a short term. Given the amount you pay per month and the estimated value left at the end of your fix, that might not take much time to replenish, and save you interest on the mortgage.Worth a thought.