Mortgage advice

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Joined
3 Dec 2008
Posts
182
My fixed term is coming to an end, at the moment the variable rate that it will automatically change to would save me a fair few bob. I don't really have the spare cash to shop around and be charged fees, and as it's a 50% equity mortgage my options are limited anyway. My fixed was 6% or something and the variable is down to 5% at the moment, making it currently a better position for me.

Does anyone have any knowledge of the market, should I pay the £60 and renew my fixed term for another 3 years at the higher percentage, or stay on the variable rate?

I know the logical thing is to speak to a mortgage advisor, but I don't like speaking to people on commission. Call me paranoid.
 
Find a non commission based IFA in your area and ask them? I can't help as I don't know your personal circumstances but if I were you:

I like security of knowing what I'm paying. I can also see interest rates rising in the near future. How much could you afford them to go up by before getting screwed over?

Personally if what you are on now suits you and you can afford it and fix in for peace of mind for X years then I would do it.

Can't help more than that I'm afraid!
 
Yeah wont cost a penny for advice from a Advisor. 5% sounds a lot though. had our mortgage for a year now and we got it @3.4% and i saw a deal few weeks ago at 3% of something like that. Best bet is to see advisor as they have access to all the companys. but do also check with ur bank as they maybe worth a shot.
 
Personally I've been on SVR for nearly 2yrs now and enjoying pretty much as low interest as possible.

I know that interest rates will climb and when they start the sky is the limit.
Once your on SVR remember you are in effect on a "rolling 30 day contract".
So as soon as rates start to climb you can literally immediately go in and lock yourself into a fixed term.

But as said above - I'm in no real position to advise, just telling you what I'm doing.
 
Are you saying the LtV is 50%, if so you should be getting a better rate than 5%.
I would personally go to fixed. it just means that you know how much you will be paying and your not at the whim of rates
 
I'm guessing it's a shared equity property, so the OP is only owning 50% of it.

Mortgages for shared equity tend to have worse rates than fully privately sourced ones.
 
+1 on fixed. forgot to mention the 3.4% rate i get is on a 75% mortgage. while rates are still low maybe try getting a long term fixed though. thats only my opinion though
 
Personally I'd extend that fixed rate for the peace of mind, interest rates are extremely low just now (should be lower really seeing as the base rate is 0.5% or something daft). Getting advice from an independent advisor would definately be the best way to go though.
 
use the comparison sites
then visit a mortgage bloke
If you have a low credit score you are shafted, banks dont like you anymore
 
Yeah wont cost a penny for advice from a Advisor. 5% sounds a lot though. had our mortgage for a year now and we got it @3.4% and i saw a deal few weeks ago at 3% of something like that. Best bet is to see advisor as they have access to all the companys. but do also check with ur bank as they maybe worth a shot.

you got a mortgage for 3.4% a year ago?!

were you a first time buyer?

i got 5.25% a year ago and that was the best around. fixed for 4 years as a first time buyer
 
Fixed if you like the peace of mind, variable if you don't mind paying a different amount each month and can still afford to pay the mortgage should the interest rate rise 2%
 
Trackers are next to non-existant currently.
The Liber rate is going up and up, even if interest rates are not, so be aware.
Whatever you currently enter a variable at will not go down, they're basically as low as they can go.
Once the Govt and BoE come clean, and actually admit inflation is going du-lally, then interest rates will start to march. I'd expect 1% increase over the next 12-15 months, and after that is truely is anyones guess, and will in part relate to who gets into govt next month.

Find out how much your Variable will cost you monthly now, and how much with 1% added and 2% added, and finally 3% added. Exact monthly payment calculations.
Compare this to the price of the fixed. If interest rates go up more than 3% in the next 2 years, the govt will have f'ed up badly again. You probably won't have a job, let alone a house, and we'll all be standing in line with you.

Make your decision based on that.
 
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