New Motgage deal

[Glen H]

Any financial or mortgage experts out there - my current Fixed term rate with the nationwide is about to expire and about to start the search for the next deal - if any. Currenlty coming to the end of a 5yr fixed at 4.95% which was pretty good at the time and probably been a safe choice but as the base rate is so low at the moment I will shortly default to Nationwide's BMR of 2.5% so would actually see a saving of around £60/month  

I normally go for a 3 or 5 year fixed (repayment) - mainly for security of knowing what my payments are going to be but perhaps in a little better position to gamble a bit more now. Deffinatley not interested in anything that ties me in to the lender for anything longer than the offer period and not really into paying large reservation fees

I'm normally o.k at working out what the overall cost comparisons are for the offers available and but the big question is what's the interest rates likely to do over the next year or 2    

[carpetstu]

Glen tbh I would let the current mortgage just run at current rates mate.

See what happens and keep a close eye on the world financial situation.

If and when the current Apr starts going up the banks will offer rates to attract customers.

[RichP]

I' ve been sat on the Nationwide base rate for a while now, and plan to leave it there for the time being. The cost of fixing at a higher rate is not justified in comparison to the current savings. So, I think you should let it run on.

However, once we approach a general election I think there may be a risk of increased rates if Labour get back in again, resulting from a lack of confidence in their ability to manage the economy.

(not planning to start a political debate - just what I've read somewhere)

[pistonbroke]

save money , sell the house , move into the shed  

the worlds gonna end soon anyway so you might as well sell up and enjoy what short life there is left on this planet  

[RedditchJay]

I am in exact same situation, had 4.55% fixed last 5yrs, I intend to go to varible base rate at around 2.25% and see what happens.

[Jenko]

I came off a 5 year fixed last year, and decided to go to base at 2.5%.........

What I am doing is 'over paying' as it's easy to get used to a much lower rate............and at some point they will go up again.

[devans414]

Glen,

As everyone has already pointed out, stay put while rates are low, keep making the same payment so in effect overpaying and stretch to a little more if you can, rates are likely to only go up, take advantage of it now!

When the 'time' comes, have a look at Money Saving Expert well worth a read.

[Tim Ellershaw]

Money Supermarket is a useful tool for comparing deals.

But with rates as low as they are, the cost of remortgaging fees often outweighs the savings.

QUOTE

what's the interest rates likely to do over the next year or 2

with BoE base rate at 0.5% there is surely only one direction it can go, so fixing at current low rate may be a good option    

[DickieB]

Glen,

I've just gone through the same process.  Ended up with 2.49% above base for 5 years, but capped at 5.99%  Seems to be the best of both worlds to me.  I know I can afford 5.99 if I have to, but I'm quids in (and over paying) as long as base rate is 3.5 or less. Capped are worth looking at - I think only Yorkshire Building Society does them at the moment.

Dickie