Mortgages...does any one know...

Discussion in 'Time Out' started by Mrs Malapup, May 17, 2009.

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  1. Mrs Malapup

    Mrs Malapup Contributor

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    ....what happens when your current deal ends if you dont take out another one? Our fixed rate ends end of June and they are writing to say we should get another deal. But the deals are not particularly enticing...3 year fixed rate (too long) 5 yr Tracker( too long). With the bank's base rate being so low would it be better to just let the deal end and do nothing??.....deals cost money too [​IMG] We are currently on a fixed rate 5.9%. Anyone have any ideas on this. We are with the Halifax. Thanks :)
     
    Posted: May 17, 2009 By: Mrs Malapup Member since: Sep 4, 2006
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  2. downsouth

    downsouth Contributor

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    you will simply revert to your lenders standard variable rate, normally higher than any deal you may be on, but in this current climate of low interest rates you may actually find yourself on a far lower rate :) just be aware that when the BOE interest rate rises again so will your rate
     
    Posted: May 17, 2009 By: downsouth Member since: May 16, 2008
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  3. DotNetWebs

    DotNetWebs Contributor

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    Usually you just drop onto the bank's Standard Variable Rate (your contract should tell you).

    As you say, with the rates being so low at the moment, you might gain by doing nothing. You can always negotiate a fixed deal later.

    Regards

    Dotty
     
    Posted: May 17, 2009 By: DotNetWebs Member since: Feb 16, 2005
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  4. Cornish Steve

    Cornish Steve Contributor

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    Our fixed rate mortgage is at 4-1/4% (I could have obtained 3-7/8% if I'd been willing to pay some closing costs). People are going on about low rates right now of 4-1/2% or 5%, claiming they are record lows but they are not. I obtained the fixed 4-1/4% about 8 years ago. Rates dipped, no one noticed, and I reaped the benefit.

    The reason I mention this is that it's worth monitoring rates all the time - and not just when they are in the news. You'd be surprised at how much they vary, so set yourself a reminder to check them out every 4 weeks.

    In addition, keep a close eye on credit card rates. I haven't paid more than 4% interest on a credit card for more than 10 years. I use credit cards to obtain cash for my business. Currently, I have two zero percent cards (that I replace every 12 months, when the offer expires), one at 1.9% for the life of the balance, another at 2.9% for the life of the balance, and another at 3.9% for the life of the balance. Once again, if you're diligent, you can save a fortune.
     
    Last edited: May 17, 2009
    Posted: May 17, 2009 By: Cornish Steve Member since: Jul 4, 2005
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  5. Beachcomber

    Beachcomber Contributor

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    Stick with the bank / building societies standard variable rate - it will almost certainly be the cheapest option.

    When rates look set to rise more than 1% above the current rate start shopping for a new deal.

    I'd imagine we will see low rates for the next 18 months and then they will start creeping up by .25% every 4 - 6 months, possibly with the odd .5% jump here and there but for the time being I'd stick with what you've got.

    I was on a fixed 5.1% deal until March, since then my payments have dropped by £200 odd per month!

    One thing I would suggest - if you are comfortable with your current payments then when you transfer to standard variable and your monthly payments drop, put that extra money into a saving account or overpay on your mortgage - it's easy for a few hundred to get swallowed up into your everyday finances but if you divert any savings in mortgage payments elsewhere you can get real benifit from them.
     
    Posted: May 17, 2009 By: Beachcomber Member since: Apr 29, 2009
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  6. vvaannmmaann

    vvaannmmaann Contributor

    13,109 3,369
    Maybe your "life coach" course will help?
     
    Posted: May 18, 2009 By: vvaannmmaann Member since: Nov 6, 2007
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  7. red-source

    red-source Contributor

    512 72
    beachcomber hits the nail on the head! You will probably be able to get a much better deal than your current fixed 5.9 so if/when you make the deal, try to allow yourself to keep the balance going onto your capital. Its amazing at how much cash/time you can save of a mortgage just by overpaying an extra 50 - 100 squid a month !
     
    Posted: May 18, 2009 By: red-source Member since: May 16, 2009
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  8. Mrs Malapup

    Mrs Malapup Contributor

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    Thanks everyone for your input....roll on July :D
     
    Posted: May 18, 2009 By: Mrs Malapup Member since: Sep 4, 2006
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