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mushnmc11
16th June 2011, 20:28
ok, my mortgage is coming to the of the fixed rate term, it has now gone to variable and my payments are over 100 quid less, do i stay variable or change again to fixed. help would be really apprieciated.

thanks

Dominic
16th June 2011, 22:14
ok, my mortgage is coming to the of the fixed rate term, it has now gone to variable and my payments are over 100 quid less, do i stay variable or change again to fixed. help would be really apprieciated.

thanks

Personally, having gone for a tracker for 2 years, now going down the fixed route. The rate is just 1% higher than my current rate but I feel rates will close the gap within 6-9 months and will benefit for the majority of the term.

It depends what rate you can get really. It's hard to comment based on ? as a small rate rise on a large amount can make a bigger difference than a larger rise on a small amount.

You could have been on a very high rate on a small mortgage and dropped 2% or more and only saved ?100. So it's hard to give a definitive view based on the limited information you have posted.

So you need to look at how much the arrangement and legal fees are, the difference per month, how long a fix it is etc etc. Then what do you think will happen to rates? My thoughts are above - I think we will be nearer 1.5% in 9 months than 0.5%, but that's just my hunch based on what I've read. I may well be wrong, nobody really knows. Then assess your attitude to risk and how important a fixed rate would be to you re planning finances etc.

navara
17th June 2011, 09:16
ok, my mortgage is coming to the of the fixed rate term, it has now gone to variable and my payments are over 100 quid less, do i stay variable or change again to fixed. help would be really apprieciated.

thanks
Overpay the ?100 to reduce your debt. Stay on the variable for now.

ninja_ang
17th June 2011, 10:38
It really depends as Dom said on what the rate is that you are on now and what rate you can get fixed and how much that means paying a month. For example we are on a variable rate that we got a long time ago, so we are currently paying 0.68%, we can fix in at 3.99%, so would mean paying an extra ?300 odd a month, so we are better off staying as we are for now. But if your fixed rate is only 0.5% or 1% above the variable it might be worth fixing as the thought is that interest rates are going to rise by the end of the year. But you could hang on a few more months and get the benefit of the extra ?100 a month for a while.
xxx

Dominic
17th June 2011, 11:28
Overpay the ?100 to reduce your debt. Stay on the variable for now.

Don't see how you can advise that given the very limited detail given!

For a start some mortgages don't allow overpayment and for a second we don't know the rate being paid. It might be possible to actually reduce payments further or at least secure a fix at negligible cost, depending on circumstances. If rates rise the fixes we see now will disappear, replaced with far higher rates.

navara
17th June 2011, 12:04
Don't see how you can advise that given the very limited detail given!


That's my advice and mine was paid of years early. I think we have another thread on here with the same advice.

Dominic
17th June 2011, 13:01
That's my advice and mine was paid of years early. I think we have another thread on here with the same advice.

My point is whilst overpaying is good, assuming it's allowed on that product, overpaying if also paying a high interest rate is not so good. You need to secure a good rate (balanced by cost to switch) whether it be fixed, tracker or discounted or indeed a low SVR as well as overpaying.

The op may also have credit card debts etc, paying interest on same, in which case it makes far more sense to pay these off first.

You can't give one size fits all advice based on limited facts

navara
17th June 2011, 13:13
You can't give one size fits all advice based on limited facts

It's never stopped you in the past:D:D


Seriouly though..























http://www.paidtoshop.co.uk/image.php?u=6840&dateline=1276731935 (http://www.paidtoshop.co.uk/member.php?u=6840)Get some advice from an IFA.

wildfire2
17th June 2011, 13:38
I?ve always went for a discounted or tracker deal in the past. But as it?s a pretty good bet that rate will rise soon I?ve went for a 2 year fixed deal.
One thing to be very careful about, no matter which deal you go for, is that the fees don?t outweigh any potential saving. No sense saving ?10 a month if the bank is going to charge you ?1000 to get the deal.
See what your existing lender can offer in the way of ?no fee? deals.
Also ask for a quote on reducing the length of your mortgage, even paying it off 1 year quicker can really save money in the long run.
If you speak to an independent financial advisor be sure to compare whatever product they offer you with the ?no fee? deals from your existing lender.

Pandoraskids
17th June 2011, 15:28
Overpay the ?100 to reduce your debt. Stay on the variable for now.

Depends on personal circumstances but this is what I'm currently doing :)
My mortgage isn't huge though

Dominic
17th June 2011, 18:50
It's never stopped you in the past:D:D



Past performance is not a guide to future performance. Your house may be at risk if you do not keep up repayments on a mortgage or other loan secured on it...........:D

MomaBee
17th June 2011, 19:23
It depends what the variable rate is. Just because it's ?100 cheaper doesn't mean it's the best rate going.

My fixed finished a year ago but the variable rate was 2.5% higher than I am currently paying.

Shop around then overpay.

Dominic
17th June 2011, 19:24
It depends what the variable rate is. Just because it's ?100 cheaper doesn't mean it's the best rate going.

My fixed finished a year ago but the variable rate was 2.5% higher than I am currently paying.

Shop around then overpay.

That's basically what I was saying :) but put more succinctly!

MomaBee
17th June 2011, 20:38
That's basically what I was saying :) but put more succinctly!

Thats why I don't need to post most of the time;)