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Fixed rate ending soon

Hi,

My fixed rate mortgage will be ending at the end of October. I have been given 4 options from my current provider, the variable rate, 2 year fixed, 5 year fixed or 10 year fixed. In addition to this, we are also considering to look at re-mortgaging to pay off our share equity loan that we got when we brought our house in 2008. This will be 40% of the market value (requiring independent valuations to be completed). 

My question is, should I move on to a new fixed rate first and then look in to repaying the loan or do it all at once?

Comments

  • jlfrs01
    jlfrs01 Posts: 291 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    I think it depends on how long you've got to go on the loan and the interest rate it's at. If it's a competitive rate and you've several years to go, refinancing the debt could be counter-productive if the interest rate is higher.
  • We pay interest only on the loan and it is at 3.75%. We have to pay the loan back by 20/11/33.

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