Brun

My current deal is up in a couple of months. My lender has sent me a letter stating that I will drop onto their base rate of 2.5% which will save me £200 a month. If I lock myself into a new deal then my payments will be a touch less than I'm paying now. Is there any reason I shouldn't just ride the base rate?

Simple answers please

bustaMOVEs

iTrader: (31)

I was the same, riding base rate now, but just recently gone up £20 so may think of changing soon before they keep going up, but still not sure

speedking

This thread.

Jamescsti

I'm riding the base rate as well, have been for a couple years now and it's worked out well.
It's all a bit of a gamble though and if rates do go up I'll take a hit. Would have to be a bloody big rise though to get anywhere near where I was before, I'm talking around 4-5% so I'm not worrying.

Brun

I'm aware different lenders will apply different rules but do you think i'd be right to assume that I would continue to be charged at 2.5% until the BoE rate surpasses it?

Brun

Thinking about it, although it doesn't state it on my letter, I will be dropping onto a tracker Mortgage so that stands to reason!

jay-sti

iTrader: (2)

Its sounds like your on a similar deal to me , i was on a fixed at 6.79% , then my fixed period ended and i dropped to 2.5% , saving me £514 pm

Ive been on the lenders standard variable rate for 3 years now and there variable rate tracks at 2% above base , ive got a long way to go before im back where i was , the general feeling on the market is that we wont see a bank of england rise until atleast 2014 and even then it will be very gentle , 0.25% at a time

Ride it out imo

Steve vRS

I'm doing the same and the money I'm saving (as well as a bit more), I'm using to overpay so that if and when rates rise, I'm used to paying at that level.

Steve

cookstar

iTrader: (6)

IMO, ride the SVR but keep the payment the same as you have been paying, you wont miss the money but will overpay nicely, reducing the term by a good chunk.

Brun

Thanks everybody

Carlh

I use an independent mortgage broker, every two years, he goes gets me the best deal and my mortgage comes down . the mortgage company pays him the business and he's not tied into anyone. Let them do the hard work bud!

cookstar

iTrader: (6)

Good luck getting a new deal at the moment for less than 2.5%, then there are the fees to consider, can work out to quite a bit.

Dunk

iTrader: (1)

Check what rate you'll revert to, if it's the lenders SVR, then be careful as they aren't tracking the BoE and are loading the rates to clawback their margin at the mo.

D

Brun

Our Mortgage will revert to the Base Mortgage Rate which is guaranteed to be no more than 2% above the BoE base rate so currently it is at 2.5% which will save me £280 a month

Brun

Just to put some meat on the story - we bought a new build 3 years back with no deposit. Part of the deal was that we were lent £19k interest free for 10 years (find that anywhere else ). As the £19k is in the small print of the Mortgage deal we are kind of stuck with the Nationwide until we clear the debt. Currently we have £11k saved up towards the 19k and if we stick on the lenders base rate then we can easily save the remaining £8k inside of 2 years with what we will save

Rob Day

iTrader: (78)

My Morgtage was coming out of its fixed rate in Feb 2011, so I took out a 2 yr fixed deal at 3.0% which saved me around £100, and although its proved to be not such a good deal as the base rate has stayed lower, I still feel that I did the right thing in the circumstances as we were (late 2010/2011) expecting a % hike to bail out the rest of the world ;(

Anyway Im at 3% for a further 9 months so its not too bad for me. If I was coming to the end of my fixed term now, I would ride the base rate

Rob

davegtt

My 5yr fixed deal just ran out too and Ive gone onto their variable which is 0.25% above base rate. Im now paying £160 a month on the mortgage instead of the previous 5yr payments of £530. Ive just lost a 30k a year job though and struggling to get a decent salary anywhere else so lucky for me this has all come about at the right time to help me survive. Saying that though, would have been nice to have saved my mortgage payments 6 months previous to losing my job, would have helped me put some good money behind me.

mart360

Dont know who your all with, but our "base rate" when our fixed rate was over was 4.5%

currently on 3.5% fixed for 2 yrs


Mart

Evolution Stu

iTrader: (2)

Same boat, mine was 5yrs fixed at 4.8% and it comes to an end this month saving me a stack, so I think I am going to actually revert to the tracker at 3.9% and overpay the mortgage then take a new product as and when the rate rises.

Neanderthal

iTrader: (6)

Our first house we took out a tracker mortgage (interest rates went up). So this house we took out a 5 year fixed and sods law, interest rates dropped like a stone 2 years in to the agreement.
It ends in September this year and I'm torn with what to do. Like most fixed deals ours drops to BoE base +%age so for the short term I'm going to stay on that.

jonc

I'm on a 2% + base rate tracker. I've been getting loads of mail from our mortgage provider informing us of the risks of future rates rises and to take up thier new fixed rate deals since our fixed rate term ended to try to get us off this mortgage and on to another that will make them more money. All their new offers go on to their higher rate standard variable tracker after the term ends, so that's a thanks but no thanks from me.

Dunk

iTrader: (1)

What's your views on where you think the BoE base rate is heading?
(I can't see it moving for 2 years)

D