Right, really could do with some sound advice, unless it's like some of your team choices then I'm not interested

My mortgage deal is about to expire, I currently pay 5.59%, if I pay £4000 off the mortgage and a £400 deal fee? Then I can secure a 4.59% 2 year deal, or I can pay nothing and go onto a standard variable rate currently 4%.....I know what sounds the better option to me but I don't/can't afford to pay more than the 5.59% I am currently paying.

This bank of England base rate, what's the crack? How often does it get reviewed? Can it only go up.25 each time so if it gets reviewed every 6 months the worst case I can be in is 5%....any help appreciated.

Thanks

The base rate gets reviewed every month.

As far as I know they can change it by as much as they want but they really wouldn't want to do too much at once. Far more likely would be a creeping rise at 0.25% a month.

I don't reckon it will shift much in the next year or two but long term nobody can tell. If you are only tying in for two years then don't fear a big base rate rise. It probably won't go over 2%. They will try and keep it low unti there is a big boom in the country's financial position and things need to be calmed down. I really can't see that happening in two years (or three... or four.....)

Just let it slip onto SVR mate and either enjoy the monthly saving or continue to pay what you have been to reduce the loan putting you in a better position when you do need to secure a 'new' deal, shouldn't be any real movements on Base Rate for a while.

You're all good.

I'm in a similar situation myself as my fixed rate is up in April. The last talk I saw, sorry no link, was that rates would stay low until at least 2015. Mortgage lenders are getting their cash from you by other means. Arrangement fees have increased greatly since I last secured a mortgage for example.

FWIW I'm looking for a good tracker deal with a low arrangement and exit fee and HSBC seemed the best bet the last time I checked.

The base rate is about as low as it's going to get at 0.5% I think. As the BoE control any movement, it's highly unlikely we'll end up at the early 90's 15% mark. If you shop around you should be able to easily get a rate comfortably below 4%

HSBC tracker is where you want to be

Rates wont/cant go up until the economy starts to show some signs of recovery and inflation comes down

I cant see that happening for a while yet and most are saying we have at aleast a furrther year at 0.5% base rate