Mortgage - would you fix now?
Discussion
I currently have £110k mortgage @ 2.5% on Nationwides BMR product. I believe this basically tracks 2% above base.
I checked this morning and they are offering rates of 2.07% fixed for 2 years, which would then revert to SMR of 3.99%. This would save about £25/month. No product charges.
At the other end of the scale they offering 10 year fixed at 3.04%, which would then revert to SMR of 3.99%. This would cost me £32/month. No product charges.
I have another mortgage of about 40k which is currently fixed at 3% (early redemption charges would apply).
LTV is around 70%. I overpay buy around 300/month.
My finances wouldn't be under much pressure if we saw 6-7% rates, so the monthly savings/cost isn't that important in the short term. I am tempted to take the 10 year fixed to protect against longer term rate rises, i hope to maintain or increase my overpayments. I have pretty much discounted fixing anything under 5 years as this would probably end when rates are on the increase and would leave me on the SMR rate which would no doubt be even higher and leave me searching for a new 'deal'.
So, what would you do? Am I forgetting anything?
Thanks
I checked this morning and they are offering rates of 2.07% fixed for 2 years, which would then revert to SMR of 3.99%. This would save about £25/month. No product charges.
At the other end of the scale they offering 10 year fixed at 3.04%, which would then revert to SMR of 3.99%. This would cost me £32/month. No product charges.
I have another mortgage of about 40k which is currently fixed at 3% (early redemption charges would apply).
LTV is around 70%. I overpay buy around 300/month.
My finances wouldn't be under much pressure if we saw 6-7% rates, so the monthly savings/cost isn't that important in the short term. I am tempted to take the 10 year fixed to protect against longer term rate rises, i hope to maintain or increase my overpayments. I have pretty much discounted fixing anything under 5 years as this would probably end when rates are on the increase and would leave me on the SMR rate which would no doubt be even higher and leave me searching for a new 'deal'.
So, what would you do? Am I forgetting anything?
Thanks
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