Interest rate rises, should I remortgage? Help please

[QuandaleDingle]

My fixed rate mortgage ends in one year 11 months and I've just seen on news about the potential base rate rise today

I've got a fair amount of equity (house valued about 300k with 110k outstanding,
Mortgage is at 1.75% with a monthly repayment of £600 which is doable but would be very tough if it went up by much)

I am worried that when my fixed rate ends the interest rates will be sky high and I won't get any where near as good a deal

With energy bills and everything rising I want to keep my costs from spiralling as much as poss so in my circumstances would you remortgage to try and fix at a decent rate ? Also, I know id have to pay a penalty for coming out of my fixed deal

Personally I wouldn't give up nearly two years of a low fixed rate at this point in time.

I'm in a very similar position with a rate of 1.59% for the next 18 months. Just checking what my lender is offering at the moment I'd be looking at a rate of 3.5% ish if I wanted to refix now, plus at least a couple of thousand in penalties.

Maybe look at what you'd be paying on a realistic new fix right now, then overpay that much until the end of your deal? Then when it ends you'll have paid down a good chunk, and have got used to a higher payment so it won't be such a shock to go onto a higher rate. And you won't have chucked money away on the penalty.

Or look at 10 year fixed rates that price out the short term rate rises. Appropriate if you want absolute certainty, but not if you intend to move and the product is not portable. I got 1.6% 10yr fixed as an equity release to reinvest.

I was in a similar situation and broke my fixed term - 1 year remaining to get a new product. But I did this last December when rates were just starting to creep up so managed to get 1.5% which was lower than my then fixed products. I only switched to the new product this June maximising my low old rates. I think it might be a bit late to do this for you now. St would be to calculate both scenarios with some speciation and see where you stand.

I’d hold your nerve for two years and overpay a bit if you can. Then when you come to remortgage the capital will be less.

I think you’ve missed the boat now I’m afraid

Thanks everyone this has been helpful