Fixed rate coming to an end

[Parakeet88]

I wasn't sure where to put this...

Our 2 year fixed rate mortgage is coming to an end in the next month. Our mortgage is fairly small and we were considering paying it off rather than committing ourselves to another 2 year deal. However, given the current circumstances, we're rethinking that.

Looking at options, the interest rates are all still quite high (around double what we're currently paying) which I'm suprised by given the base rate has been cut so much.

Is anyone in the same position? I'm not sure whether to pay it off as planned, fix again or just go with the variable rate for now in the hope that it goes down.

What's your current rate and how much left and how much outstanding?

Fixed rate deals haven't actually reduced it seems as I'm waiting on some better Santander products.

Current rate is 1.64% and we've only got a small amount left, which we were going to pay off but I'm just not sure it's a good idea now - would rather keep the money we have in savings.

I'm wondering whether we should just wait a few weeks and see if the rates catch up.

Can't your lender match that for another 2 year term? I was looking at hsbc last will and they are about that for 60% ltv. The fee is a pain though.

Some places won’t do deals on under £10k, if that’s relevant.

Thanks everyone. It's a bit more than £10k but that's useful to know. The fees are a pain! I've seen some reasonable deals, but with £999 arrangement fee which just doesn't justify it!

What is the standard variable rate at the end of the mortgage?

You should be able to get something around that rate first direct are doing a fixed rate of 1.64.

Most of the banks said they'd review their mortgage rates on 1st April. Wait a few days and see what's available then.

Martin Lewis said the rates should come down 2-3 weeks after the announcement of the interests rate fall. Hold on a bit if you can!

We have a fixed term coming to an end on 1 June so looking with interest too. We were going to reduce it but not sure about that now as our savings have just nose dived in value!

Why don't you do offset? If you can afford to pay it off keep the money in the offset savings. Benefit from lower interest payment as you'll only pay interest on the difference between the mortgage amount and the savings amount.

Thanks everyone, will hold off a bit longer!