We are on a 2 year tracker/variable mortgage which has increased from £1200 a month to £1710 due to interest rates (currently we are on 5.34%). I engaged an advisor (no fee) who has found us the following:
swap now (6 months early) to:
2 year fixed at 4.19 with a £999 fee
3 year fixed at 4.14 with a £999 fee
5 year fixed at 3.99 no fee
all of them are portable if we want to move (which we may but not for 2-3 years I don’t think). Wouldn’t be a hugely bigger / more expensive house just a change of location.
I don’t know what to do. Is fixing at 3.99 stupid at this point or a wise move given rates are likely to fall? It would reduce our payments by £200 a month if we do that. Advisor also said we could extend the term. We have 21 years left on a 260k mortgage but quite a lot of equity as the house is worth 675k ish. We are both 40.
i know nobody has a crystal ball… but i am interested to hear what others are doing in a similar situation?