Mortgage advice

What are your opinions on fixing a small mortgage for two years at 4.19% as opposed to staying on the SVR????
Thanks

3 Comments

Supermod

4.19 isnt a bad rate to be honest. The base rate isnt (apparently) going to be at its height for another 4ish years. Most trackers were withdrawn and replaced with more lender preferential terms...which is obviously to be in their favour. They wouldnt be able to lend though if it wasnt this way.

I managed to get a tracker the VERY day the base rate dropped.

Pundits say interest rate is likely to remain at 0.5% for at least a year.
Look for best deals and do the maths.

I'd agree to the above. I am also on SVR (3.5 with Halifax) and would most likely stay and reap the most out of it as all fixed rates are higher than 3.5.

The reason i would not fix if i was in your shoes, because, as the pandits say, the rates wont go above for 1 yr, but what about after 2 years? When you come off the 2 yrs period, the rate most likely will be above 4.19 that you are being offered now.

So stay put and wait till you get a good priced fixed rate instead of jumping to the first available good deal in fear of losing it.
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