Svr currently 4.24% should we fix at 4.49% for 3 years no fees?

[Frazzzled]

What do people think, looks a good deal? Do you think BoE base rate will rise anytime this year? Interested to get your thoughts, thanks

We are fixing for 5 years at 4.79. This is mostly because we need to have a set amount to work with for the next few years. Our ifa has said it's a good idea but we went to him with it.

A few months ago most economists would have said they expected several interest rises this year as inflation is picking up but the economy has slowed sharply in the last few months so the thinking now is that the Bank of England will hold off as long as possible.

As a result, longer term interest rates have been falling in the wholesale financial markets - hence fixed rate mortgage rates have also started falling.

Your SVR is quite a big spread over Bank of England rates though - you could get a lower rate by just remortgaging to a better rate even if you didnt decide to fix. My bank offer 3.8% on a 2 year Tracker at a maximum 85% LTV.

The only thing I would not do is get a Lifetime Tracker. The interest spreads (premium) over Bank of England Rares are at historic highs, roughly 3% per annum. Back in the good old days the typical spread over Bank of England was just 1.5 - 2%.

thanks for replies. good point morebeta can i ask what bank it is that is offering 3.8% svr that is really good? we're currently with santander, so if base rate rises they can spread even more!! i am guessing interest rates may rise towards the beginning of next year bases on predictions but who knows! i do think 4.49 is pretty good compared to a few years ago fix's where all over 5%

I sent you a PM.

That is not an SVR by the way. The SVR is what you pay a bank once your existing mortgage deal/agreement has ended. The rate i quoted is for a new mortgage agreement. The SVR at First Direct is 3.69%.

morebeta got it, thanks so much, definitely worth looking into further.