mortgage up for renewalo

6 replies
Found 12th Feb 2011
can i have some opinions please my fixed rate is up soon and its dropped to the standard variable rate which is a saving of £130 amonth people say the interest rates need to go up by 3 to 3 and a half percent for my mortgage to meet what i was paying on my fixed rate ,does anyone think it gonna go as high as that,what would you do

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6 Comments

Banned

DLM

Financial questions are better posted on this … Financial questions are better posted on this forum:-[url=http://forums.moneysavingexpert.com/forumdisplay.php?f=15]http://forums.moneysavingexpert.com/forumdisplay.php?f=15[/url]



And there we all were thinking you're a financial guru...

Most experts think the rate will increase later this year and start of next year but when they do it is usually only by 0.5% each time so would take a good few increases before it reached the level you are currently paying on the Fixed Rate so probably best taking advantage of the SVR for the moment. If you were comfortably managing to pay the higher Fixed Rate it would be a good idea to keep your payments at this level as it would significantly help reduce the term of your mortgage or help to reduce your payments in the future (depends how your lender treats these overpayments and the options they allow). The SVR is unlikely to ever go lower than it is currently therefore a good time to take advantage of this and pay as much as you can comfortably afford.

Hope this makes sense.

I've done just this for the past year plus. I came off Fixed and then told them to keep my payments at that level which is paying £90 extra each month on what I have to meaning I am paying it off faster.

I will be waiting till I see rises in the interest rate start and then will re-consider.

Banned

Stuart is correct. Although I'd suggest increases of 0.25% are likely rather than 0.5%.

I got a lifetime tracker two years ago at 0.3% above base. At the time, base was around 5% and the month after I got the mortgage it plummeted month on month. So now only paying 0.8%.

Problem is, interest rates WILL rise to a more realistic 5% in the next few years so people will be paying more like 7, 8 or even 9% based on what deal they got in the past couple of years since the drop.


Edited by: "JonnyTwoToes" 13th Feb 2011

JonnyTwoToes

Stuart is correct. Although I'd suggest increases of 0.25% are likely … Stuart is correct. Although I'd suggest increases of 0.25% are likely rather than 0.5%.I got a lifetime tracker two years ago at 0.3% above base. At the time, base was around 5% and the month after I got the mortgage it plummeted month on month. So now only paying 0.8%.Problem is, interest rates WILL rise to a more realistic 5% in the next few years so people will be paying more like 7, 8 or even 9% based on what deal they got in the past couple of years since the drop.



Spot on regarding the likely increases being 0.25% rather than 0.5% (meant to type 0.25% but missed the 2 out). When announced they usually state it as "a quarter of one percent".
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