My 0.99% fixed rate up in December!

Stevensuperbike

Hi all,

My 0.99% fixed rate is up in December this year! I still owe £49k (house £valued 236k (probably less now with the UK market) been saving up and paying chunks off at a time i.e. £4k, £6k but finally met my 10% overpayment allowance this year. I earn 55k a year, have a housewife, 2 kids, 2 dogs, £mortgage, 2 cars, (1 decent car + 1 banger) 2 rabbits, 6 chickens (lots of dependents on me!) Currently saving chunks to also pay off - Paying off a car £8k (0%apr), £10k kitchen (0%apr), credit card £3k(0%apr). I tend to save £2k every month and pay off either of these whichever I feel like paying off first, the overpay for mortgage has taken the back burner for now with the car and kitchen being our most recent purchases which I'd like to clear up first. Car, kitchen and credit card are only 0% for another year which I have calculated I could pay off saving £2k a month. Not feeling great about mortgage overpayment now on the back burner though!
 
My mortgage broker/ advisor is ringing me to make an appointment with him to have a look at the current market rates. I know he can 'lock in' certain rates even if rates increase in December. 

I've accepted that I'll be paying more for the mortgage in December but any advice on this which I may not be aware of or considering? Many thanks. 

Steve

MorningcoffeeIV

Stevensuperbike said:

I've accepted that I'll be paying more for the mortgage in December but any advice on this which I may not be aware of or considering? Many thanks. 

Yep - instead of paying off the 0% debt, keep saving the funds in a decent interest interest account, then pay off in full before the 0% expires.

You may as well benefit from the flip side of high interest rates while you can.

Stevensuperbike

MorningcoffeeIV said:

Stevensuperbike said:

I've accepted that I'll be paying more for the mortgage in December but any advice on this which I may not be aware of or considering? Many thanks. 

Yep - instead of paying off the 0% debt, keep saving the funds in a decent interest interest account, then pay off in full before the 0% expires.

You may as well benefit from the flip side of high interest rates while you can.

Thanks MorningcoffeeIV,

I've just checked and Kent Reliance do a 5.01% (£1000 min deposit) savings account. I may well look into this as a £2k sum every month would equal a £100 free on interest. That could offset my extra mortgage payment this December!

la531983

Also a word of warning that the mortgage amount is quite small, 10% of a small mortgage is not much, bear this in mind when locking yourself into a new rate as there will likely be fees for overpaying by 10% in a year.

Stevensuperbike

la531983 said:

Also a word of warning that the mortgage amount is quite small, 10% of a small mortgage is not much, bear this in mind when locking yourself into a new rate as there will likely be fees for overpaying by 10% in a year.

Thanks, I have considered dropping onto the SVR and paying off as much as I can, between the car,kitchen,credit card and mortgage I may just choose to pay all 4x £500 per month and run with that for a while. Not decided yet, the money for free in an account needs considering also 👍

housebuyer143

Stop over paying everything with an interest rate less than 5%. Put all you money in a savings account and only pay them off when required.