Which mortgage to go for...confused!!

wendfrombev

Hi there again

Can someone please give me some advice.
My Halifax rate 5.45 comes to an end of this month...I know its leaving it late, but Ive been watching the deals go up and down now and wishing for a miracle really!!


Ive got an outstanding mortgage of £48,000 on my present home.
It is currently up for sale for £115000 and I have put a deposit down on a new build £125,000.
Here's my dilemma...
The Halifax has offered me a fixed rate of 5.99 for 3 years to port over to the new property - fee £499.
Ive been in touch with L and C but they havent contacted me as yet.

Ideally I would like to fix for 10 years when I move to my new property, how do I go about this?
Shall I stay on the SVR rate with Halifax currently 7.25 (eeeek) until I sell up or shall I go onto a tracker rate with no tie ins until my house is sold, hoping that rates might come down in the Summer.
Or fix for another 3 years and port it over.

I know I am hoping for a miracle here, but ideally I would like a lower fixed rate than 5.99.

Any advise would be fab thanks

beecher

How many years do you have left? Have you worked out how much you'd be paying if you stayed on the SVR? Might not be that much on such a small mortgage.

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

Halifax's 10 year fix is 5.95% at £499 for existing customers at the moment so maybe you're better asking if you can fix on that, and port it? Though others have said that there's no guarantees about porting.

wendfrombev

Hi Beecher

Thanks for replying.
Ive currently got 21 years left on the mortgage paid for by myself on a small income of 13,000 a year.

Ive been having doubts about fixing for 10 years now as I don't know what the future holds maybe I might fix for 5 instead, gosh its all ifs and buts isn't it.

What puts me off is these charges to stay with your lender to pay them back what you are lending in the first place, it really annoys me that they can charge extortionate fees. £499 for the privelege of staying their customer..grrrr

Than again I look at it another way and think that I would be paying rent anyway.
My friends rent has increased much more than my mortgage and I bought mine 5 years ago.

Ive worked out that I will be paying £366 a month instead of £328 if I fixed for 3 years.
I am hoping that with a bit of time the rates might come down and all of the talk of the govt introducing longer fixed rate mortgages will appeal to me nearer the time.

beecher

You're paying the fees in order to get a cheaper product - there will be a no fee rate, and it is worth putting the figures into that link I gave you to see if it is worth paying the fee or not. For me it is worth paying the £499 rate - but only just.

When you move, will you have to up the amount of money you borrow? I think you're better thinking about whether you can definitely port, what any ERCs are etc, rather than trying to second guess what is going to happen to mortgage rates. It might also be worth looking at their lifetime tracker?

I think it might be worth going to an advisor to work out what's the best move for you.