Help please regarding finding new fixed rate

GreenNinja

Hi all,

Am struggling a bit with knowing what to do regards my mortgage. Fixed rate finishes in October this year with Abbey tracker mortgage. I have 27,000 on interest only mortgage and in October the term will be 10 years.
Thought I had better start looking around for a new fixed rate and so far have found that I am probably looking at a fee of around £500 to set it up with limits about how much of the capital I can repay. Am wondering whether it will be cheaper for me to pay the rate it reverts to when the fixed rate ends???

All pointers/advice greatfully received.

foreversummer

Ask Abbey what deal they can switch you to. It is likely to be better than the SVR. There may be a fee though.

However, I am in a similar position in as much as my tracker finishes with Abbey in October also, but I was told to ring back in July - they will only hold rates for three months. Might be worth you giving them a ring to see if they tell you the same thing.

Foreversummer

sarkin1

Ask Abbey is the y do a fee free tracker deal you can swith to i know they used to have this product avlaible. If not speak to a broker about fee free deals.

klint

I would try to avoid paying fees, even if it means switching to the standard variable rate. As you've only got a balance £27000, every 1% rise in interest rate will only cost you just over £20 a month, compared to the hundreds of pounds you'd have to pay in fees.

Gloster_Advise

Greenninja,

Are you looking to early for a deal, I don't know. If you were my mother or father I'd say hold on for a couple of months, but then that is my opinion.

If you want to secure a rate now that is currently on the market, and as someone mentioned, try and avoid hefty fees. woolwich tracker,dependant on LTV, under 6% with no fees and no ERC. Bargain.

Regards
Si

GreenNinja

Hi All, yes probably a bit early to start looking but wanted to get a feel for what deals were out there etc.

Klint, thanks for that info was wondering about doing just that, staying on the rate that it reverts to. Am hoping to pay another 2k off the capital before October and after October will be able to pay off what I like each year on the mortgage without penalty, so it may be worth not renewing a fixed deal and just concentrate on getting that capital down.

anandp

Good idea usually to start feeling out the market early, but the way it is at the moment, any deal you get on the table now, will not only likely expire before you need it, but there are likely to be better deals in the next few months.

By all means, as others have said here, give Abbey a call for their best deal at the moment (without a fee), but I wouldn't agree to anything just yet.