NOW LIVE: The Forum 'Ask An Expert' event. The theme is ENERGY. Please post your questions on bills, switches, alternative fuels etc. Our expert MSE Andrew will answer as many as possible

Standard Variable Rate or Fix again?

keldac Forumite Posts: 21
Part of the Furniture 10 Posts Combo Breaker
I have 4 years left on my mortgage with an outstanding balance of £27,000. My very low fix is due to end at the end of the year. I am considering going to the SVR and not fixing again as I am able to overpay about £250 every month. However, I am not particularly good at crunching the numbers and not sure whether I would be better fixing again for 2 years and saving the money to pay a lump sum off the mortgage at the end of the fix. Any clues or any calculators you can point me in the right direction to please?
Mortgage £32,000Unsecured loan £10,800


  • Baileys_Babe
    Baileys_Babe Forumite Posts: 5,259
    Part of the Furniture 1,000 Posts Name Dropper
    If you went with a fix you can usually make some over payments without penalties - varies by product and lender. You could then save any extra you had for over paying to pay a lump sum off at the end of the fix.

    You could also look at reducing the term of your mortgage that way your money for over paying would be incorporated into your regular payment. Your likely to be able to shave about 12 months off the term.
    Fashion on a ration 2023 66/66 coupons remaining
    Rolled over coupons 62.5/62.5 remaining (using for secondhand purchases)

    One income, home educating family 
  • frugal_lass
    frugal_lass Forumite Posts: 93
    Part of the Furniture 10 Posts
    The issue I found is the calculators can’t take all factors into account. Most mortgages only allow you to pay off up to 10% without penalty. So it depends on how quickly you are able to pay it off and what types of mortgages are available. Once your mortgage is below a certain amount the mortgages options become limited. Have you read this?

    I will be going to SVR because I will not take long to pay it off. In your case you may want to have a chat with a broker and then put your numbers through the overpayment calculator. Good luck!
    Mortgage so far: £31,630.01Aiming to be mortgage free by 2024
  • Exodi
    Exodi Forumite Posts: 2,478
    Sixth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 15 August at 9:30AM
    Just FYI - If you didn't want to fix, you'd switch to a tracker as it will almost certainly be lower than the SVR

    As I see it, this is just a typical fix vs tracker thread, as a 2/3 year fix would still be fine in your circumstances, even with your overpayment plans (as even if you did fix and reach the max overpayment - usually 10% of the total balance - you could just put anything extra in a top paying savings account and pay off as a lump sum when the fixed term expires). A tracker you can pay overpay as much as you like.

    No-one will comment whether a fix or trackers will be better over the next couple of years because that's unfortunately crystal ball stuff.
    Know what you don't
  • beanielou
    beanielou Forumite, Ambassador Posts: 86,464
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    Better posting this on the mortgages & endownments thread  :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing [email protected]. All views are my own & not the official line of Money Saving Expert.Lou~ Debt free Wanabe No 55 DF 03/03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free February 2021**** "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.***Fall down seven times,stand up eight*** ~~Japanese proverb.It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***Weight loss. ** 2 stone 7 lbs.***
  • keldac
    keldac Forumite Posts: 21
    Part of the Furniture 10 Posts Combo Breaker
    beanielou said:
    Better posting this on the mortgages & endownments thread  :)
    I have done! I only saw that section after I posted here and couldn't find out how to delete it. That said, there's more comments here :-) 
    Mortgage £32,000Unsecured loan £10,800
Meet your Ambassadors


  • All Categories
  • 338.8K Banking & Borrowing
  • 248.6K Reduce Debt & Boost Income
  • 447.5K Spending & Discounts
  • 230.7K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 171K Life & Family
  • 244K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards