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Original poster

Mortgage Renewal

10 replies

Heyduggee123 · 03/05/2022 13:21

so our mortgage is up for renewal soon. Given the current circumstances would you try locking in for as long as possible? Even if that means higher mortgage payments?

We're currently looking at a 5 year fixed rate, but they've gone up by 1% even since we started casually looking a couple of months ago

OP posts:
Ionianprincess · 03/05/2022 13:21

I would, we always fix for as long as possible

Aimee1987 · 03/05/2022 13:22

Yep fix for as long as possible. Bank of England will continue to increase the base rate

MrsMoastyToasty · 03/05/2022 13:24

I would. They can only realistically go up (and I can remember 13% interest rates).

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Original poster
Heyduggee123 · 03/05/2022 13:35

mmmm yes that's what I'm thinking too. I've never been one for taking on a mortgage deal for as long as possible as I like the payments to reduce as the amount reduces on the remaining loan value - but given the current circumstances I think we should go for a 10 year deal. We're in our forever home (well until kids move out and they're only 3 atm 😂)

OP posts:
BashfulClam · 03/05/2022 13:38

I would lock it in for as long as possible. I have 3 years before my next deal and it’s worrying.

SomethigWentBang · 03/05/2022 13:39

I just remortgaged with my current lender. I was surprised to see the 10yr fix was a lower rate than the 5.

rates are tipped to go up this week is it? I'd get an offer ASAP.

caringcarer · 03/05/2022 13:39

Rates are only going upwards for test of this year and maybe next year too.

gwanwyn · 03/05/2022 13:55

but given the current circumstances I think we should go for a 10 year deal. We're in our forever home (well until kids move out and they're only 3 atm 😂)

If your secondary school options are fine and have been for a while it may well be worth it.

We did 10 years with first house expecting to stop till kids left home - in end it was a mill stone rates dropped but secondary which had been improved went dire and getting into other options looked impossible and DH work changed - several time much to his surprise and he ended up other end of country and commuting back at weekend- we had to wait the lock in period out due to penalties before getting on market. We've locked for 5 and are overpaying and have been for a while - so have best rate offered so hope to be in decent poistion for next time even if rates are higher.

BarbaraofSeville · 03/05/2022 13:56

People have paid thousands of pounds extra over the last 10-15 years because 'rates can only go up' and they've only just started to do so.

I wouldn't fix for 5 years if it is a lot more than a 2/3 year fix, but a 10 year fix for less than a 5 year fix sounds interesting, unless they're both just really high, with the 10 year fix being slightly less high though. Check if it's portable though, you wouldn't want to face huge exit penalties if you wanted to move before the end of the fix.

It really depends what is available, the difference between fix and variable, amount of mortgage, fees etc and what's right for one person isn't necessarily the same for another.

Original poster
Heyduggee123 · 03/05/2022 14:13

gwanwyn · 03/05/2022 13:55

but given the current circumstances I think we should go for a 10 year deal. We're in our forever home (well until kids move out and they're only 3 atm 😂)

If your secondary school options are fine and have been for a while it may well be worth it.

We did 10 years with first house expecting to stop till kids left home - in end it was a mill stone rates dropped but secondary which had been improved went dire and getting into other options looked impossible and DH work changed - several time much to his surprise and he ended up other end of country and commuting back at weekend- we had to wait the lock in period out due to penalties before getting on market. We've locked for 5 and are overpaying and have been for a while - so have best rate offered so hope to be in decent poistion for next time even if rates are higher.

the school situation is a very good point which I hadn't thought of. Only 2 secondrys in our area, and only one that they would be in catchment for. My nephew will be starting there in September, I was told that there were 300 places available and 500 people applied - so lots and lots of very upset children/parents.

Our current mortgage rate is just 1.09% but the 5 year renewals are 2.4% (same for the 10 year one as well)

I think edging our bets we might go for the 5 year deal and try and overpay as much during that time as we can

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