Thrush

iTrader: (1)

Right, 31st March my 2yr fixed runs out - and I've been advised to just sit on the standard variable for a while.

My mortgage guy says there really aren't any great deals about at the mo, especially with the small amount of equity I have. I was paying 5.38% (£425 per month) with Nationwide, and he advised me to just let it run out and stay on their standard variable for at least the next few months as Nationwide are dropping their variable to 2.5%

Anyone in the know give me any more advise?

natehall

iTrader: (2)

it must be true

a commission starved commission hungry sales man told you!

sorry i mean "mortgage advisor"

dojj

iTrader: (3)

the internet is your friend

a lot of them comparision websites will give you lots of deals, all you need to do is find out which one suits your pocket best

some will have set up fees, some will have overpayment limits, etc, etc

Maria.

Matt honey, do exactly as he says! ( i was a mortgage advisor for 3 years with Mann & Co )

Double check that it will instantly roll over to their variable though.. because it might not!! If not, try and get yourself on a base rate tracker.... at the minute though these will have hefty set up fee's, but rarely have redemption penalties, and will really pay off with this low interest rate!

cossie4i+

iTrader: (15)

When mine comes off its fixed rate the interest should half

Steve

JBcos

i am a financial and mortgage adviser. Stick on the SVR for a while. If you look for a new deal then you'll end up with application fees that are almost certain to mean you will loose out at the moment (or atleast not benefit), if you have a small amount of equity then you wont benefit from the better rates that are available and could also end up with a higher lending charge being added. I shall be sitting on the SVR for a while.

Thrush

iTrader: (1)

I pressume you're being sarcastic (apologies if you're not, but it sounds like it)

But this commision starved commission hungry sales man DIDN'T sell me a new mortgage deal, and told me not to take a new deal and stay on my current mortgage and save a bit of money by defaulting onto my lenders SVR... So he didn't make ANY money from me at all as he didn't "sell" me anything....

So yeah, I'm thinking thats the best thing to do. He could have just said "nah, it's too risky to gamble with the interest rates which will probably go up - here, go on this 5yr fixed which ONLY costs £xxxx to set up" but instead gave me free advice, didn't try and sell me a new deal, told me not to bother with a new fixed plan, and not to go on a tracker that could cost me £2-£3k to set up, and just ride the SVR for a bit untill the market begins to change...

Pretty sound advice for someone so commission starved!

rocky_robin

Use the money that you will be 'saving' to overpay the mortgage. You will not be missing the cash, but it will help reduce your term.

I do this every month, but was limited to £500 (Nationwide), but now my mortgage has dropped a fair bit, so now throwing in as much as I can.