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At the moment we're paying the 4.??% standrad variable rate on the mortgage. What are the current deals, who's best.
Come on STW advise me.
stay with your current lender because changing is a faff and take the best 5yr fixed rate they offer. take the advised service and they will tell you which is the most cost effective mortgage for you as regards Fees vs no fees. Kepp you payment as it is and reduce the term or if you can afford to..... increase your payments and watch the years slide right off your mortgage...
Co-op - 2 yr fixed at 1.09% apparently.
Just remortgaging with Woolwich for a 1.9% fixed for 2 years. Some cracking deals out there, we're using local adviser, the affordability stuff took 30 mins.
Last year I did pretty much what jekkyl says, and put a few quid into the mortgage too. This along with a slight overpayment means my term has gone down from 16 to 6 years.
Mortgage free. Bring it on. 😀
Agree with a lot of the above, subject to loan-to-value. Stick with your current co; many seem to offer reduced fees if you stay with them.
We were on 5 yr fixed @ 3.94 and bailed out early (paying a fee) because it was cheaper to pay the fee and jump on to one of the new 5 year fixed. Now on 2.19 (HSBC) which suits us just fine even still paying the Advance account fee.
They do restrict your overpayment to 20% so we're saving up the extra extra into another account and hopefully will be able to knock another 5-10k off the capital in 5 years time if we haven't spent it on holidays/more kids/etc.
I'm currently on the HSBC tracker rate - can't remember the rate, around the 2% mark - probably the 2.19% Rich mentioned above. But its fully flexible - I can change it any time for no cost or redemtion, so if interest rates look like they're going to go up any time soon I can ditch my current deal for no get out charges. I can also overpay with no penalties - it's run basically like a Current Account Overdraft. I did look at the fixed rates and other discount rates around at the time and they all cost around an extra £100 per month+ extra, so would have cost me around £2k in additional interest before the interest rate is thought to start to increase, and then it would have taken some time for it to have risen enough for me to have benefitted from the deal - so not at all interest rate efficient.
No point in fixing in at this time I think, unless you can fix in at a low rate for the remaining life of your mortgage, so the downside you'll be paying for now and in the short term will turn into an upside in 5 - 10yrs time IF (and it's a big IF) interest rates ever do rise significantly in that timescale.
Just had our adviser around last night and she can get us 1.45% (£995 arrangement fee) fixed for two years (but you need to have 60% equity for this product).
Saving us £60 a month on the best deal she could find us just 6 weeks ago.
So we are knocking a third off the term, borrowing a further £30k and it is only costing us £350 a month more than our current deal.
I might even get to retire at this rate 🙂