My first mortgage expires soon. What happens next?

[lifesgreatquestions]

If anyone knows about mortgages I would be grateful for any advice.

I took out a 5 year fixed rate at 5.7% that's now coming to an end. I looked on the compan's website and it looks like if I do nothing then I get put on to a standard variable mortgage rate at 2.50%. I'm scared of variable rates but perhaps this is a good deal, obviously a much better interest rate????

One issue is I bought the house pre OH so he isn't named on the mortgage and we want to have a joint mortgage now.

Also, we might want to move next year.

Do these things impact on my mortgage opportunities?

Can I really just pop my details into moneysupermarket.com and go for the best deal?

In case it's vital info, we have good credit ratings. I bought at 170000 and the home is worth about 300000 and our joint income pre tax is 100000.

If you're thinking of moving next year, I'd personally stay on SVR until then. Purchasers generally get offered slightly better rates than remortgagers.

See an IFA? We have one who reviews our mortgage etc every couple of years when the deal we are on runs out.

I'd recommend you take legal advice over this... It might sound a bit cold, but you've been with your partner less than five years, I'm assuming you're not married, yet you're planning on handing over a half share in, what, £140k equity in your house? Please consider arranging a legally binding agreement over who owns what proportion of the house. If you live happily ever after, you need never think about it again, but if you split up, you won't get taken to the cleaners.

That aside, it sounds like you're in a great position to remortgage. Good incomes, low loan-to-value ratio. But shop around. Even if you stick with SVR, there's no reason to suppose your current provider offers the best one. You might as well check out the fixed rates available, and decide from there whether the certainty is worth the higher rates you'll have to pay for now (I'm seriously risk averse, so I don't mind paying over the odds just to know what I'm paying for the next five years). If you find a deal you really want in on, go for it. Even if you move, you'll be able to take that mortgage with you, and add to it when you need to it with whatever loan you prefer at the time.

Try www.moneysavingexpert.com/ - I've always found good advice there.

I'd also recommend getting independent advice. There are a lot of products on the market and they can help you sort through the best deals for you personally. If you go for another fixed rate, for example, the penalties for early repayment or overpayment can vary quite a lot from lender to lender. I've also found that the independent mortgage broker could get better terms than I could get myself. Above all, don't rush. Five years ago I fixed at 6% just as the base rate nose-dived. My deal finished a few months ago, I'm also on 2.5% and I've decided to leave it for the time being.

Putting your 'OH' (married? partner?) on the mortgage is quite a big step. Take legal advice and consider protecting your existing equity.

had to make the same decision recently. Still on SVR now but DH is very good at watching the market and assures me it will stay low for some time.

Rates currently very lower and unlikely to get lower so only way is up! I would see a IFA and try and get a better deal asap.

Agree with brown - why not wait until you move and get a joint mortgage then. Your relative contributions can be set in stone at that point.
For now the Svr is possibly a good option if you plan to move within 12 months. If you do sign up to another rate and it is a good one see if you can make it portable ie you can take it to your next house. Rates must go up soon given the BoE criteria for setting them.

Thanks everyone, some really sound advice. Brownsauce we are drawing up an agreement, we're a very warm and squishy couple and even we don't think it's cold, we've both been burned. We're doing wills at Christmas as well.

Thanks Breathes, I've now downloaded their advice re remortgaging.

Cogito, I feel your pain, I also mortgaged just at the height. It's wrangled for 5 long years but like BR said, I'm also seriously risk averse! My OH and I aren't married and won't but we are drawing up formal agreements and wills.

Bohemod good thinking re the portable mortgage. I didn't know that was possible.

Thanks again everyone, I feel like I'm suddenly learning a lot.

have a look at my mortgage calculator spreadsheet - link on the site stuff board - and then you can quantify your options

Thanks!

Base rates are currently 0.5%. In the seventies the base rate rose to 14%.

Dear Mr George Osborne

I do not intend to be involved in this nonsense anymore and am de mortgaging the family kennel and its two inhabitants. I shall quietly move in with the gypsies when they next come here.

It's Mr Mark Carney you should address that to.... BofE sets the interest rate. Btw, base rate rose to similar levels as recently as the mid nineties.