Mortgages - wwyd?

Hmmm. Just looking at our rates, and we'll automatically switch to the base mortgage rate which is 2.5%, well under any of the fixes and with no fee. Is there any reason why I shouldn't just stay on this and keep an eye on rates before considering switching if they start heading up?

That is exactly what we have done, I'm not working so the cheapest option is the best one for us atm. Definately keeping an eye on the rates going up, then we'll have to decide when to fix.

SVR's look very attractive at the moment, especially compared with fixed rates. However, as soon as the base rate starts rising, fixed rates will shoot up too (in fact, that's why fixed rates are relatively high at the moment - as lenders think rates will be rising in the medium term). Different economists have different slants, largely as no-one can predict the future.

We re-mortgaged this summer, and decided to fix for 5 years. We got a great deal, however (3.99% - nothing around like that now), and we both think rates will rise within that time, but if they don't, at 3.99%, we don't feel as though we'll have been cheated ?.

You have to go with what fits your circumstances - prior to our fixed rate, we had a tracker for 3 years on interest only, as I was having a career break to raise our family. We lost out to begin with, but reaped halfway through when rates plummeted. Now I'm working, and the children are getting older, we're keen to start seriously paying down our mortgage accordingly.

We've just had a meeting with a mortgage adviser as we plan on moving. We've always had fixed and we did discuss other alternatives but he advised against it. He said rates will rise and even something like 2% if you're not banking on it could mean a hefty rise and it was risky. We're sticking to fixed again, we have a decent amount of equity so there are still some good deals. We're currently on 5.69 with Halifax and he's found us one, think it's Abbey, that's about 4.5% which is pretty good IMHO, i'd rather know what i'm likely to be facing.

3.99% is a fantastic rate Carrie. Our first fixed rate back in 2000 was at 6.99%!! I still prefer to pay a bit more and know that I haven't got to worry for a couple of years.

Are you with Nationwide? I think they are the only large BS that has a 2.5% standard rate at the moment. It is worth considering that the Nationwide standard rate for customers that were on deals prior to about 29 April 2009 is guaranteed to be no more than 2% over base rate, i.e. it the same as a tracker at 2% over base. I was struggling to find tracker rates any lower than that. If however you remortgage with them, you will revert to their new base mortgage rate which is 3.99%.

We are having the same discussions at the moment and are deciding to stay on the standard rate of 2.5%. I haven't found any good fixes around and if we did fix we would want it to be for 5 years or so.

Thanks all. Redbedhead - yes, we're with Nationwide and that's helpful to know and makes me lean towards staying with it for the moment at least - with the arrangement fees included, most of the rates around would be expensive compared with the Nationwide rate unless rates rocket up significantly and quickly. I think. But as I say, we usually make the wrong decision and lose out! We can also make big overpayments if we want once we're out of the fix - though I'm a bit confused as to whether we'd want to or whether we'd be better paying them into one of the few accounts that pay more than 2.5% interest and then chucking that into the capital when we remortgage if the rates go up. All very confusing - I used to be good at maths!

Stab in the dark here, but are you with Nationwide, as that's what they call their SVR. If you are, you can always change onto a deal (fixed or tracker) at any time, but for now I would let it automatically go to the BMR and take your time to shop around for a potential good remortgage.

Like you, I doubt rates will get lower, so it's best to take your time to see who has what deal. I reckon (*disclaimer* and this is by no means what will happen) is that when rates do rise, they will go up relatively quickly

We're just buying a new house and we're fixing for 3 years - we want to know how much we're going to be paying and interest rates are only going to be going up.

Money Saving Expert suggests you can get good no-fee advice from London and Country over the phone: http://www.lcplc.co.uk/