Mortgage up for renewal- how fucked are we?

[SimonsCow]

Been on a 5 year fixed rate mortgage. It’s up for renewal in December. Financial advisor phoned to say we should secure a rate now.

We paid 345k for the property in 2019. 80k deposit. Pay £950 monthly. The plan was to have it paid of 20 years from now.

This was my first house purchase and I’ve buried my head in the sand a bit. We’re already stretched paying the mortgage every month. What kind of increase am I looking at here? What are my options?

Talk to a mortgage broker and/or look at comparison sites.

I just remortgaged and my rate went from 1.79% to 5.29% for two year fixed. That was best rate available for 60% mortgage to property value. In real terms my mortgage monthly payment went from £1,050 to £1650 per month. I didn't extend the term as we are very lucky to have both had recent promotions so can afford it with belt tightening.

A lot of people I know are having to extend mortgage term to manage the increase but obviously you pay more long term if you stay like that.

It very much depends what your fixed % was.

However, assuming it might have been around 2% and you borrowed 265k for 30 years. That would give you a monthly repayment of £980 on your old fix.

After 5 years paying like that, you would have about £231k left to pay over 25 years.

At 4.5% that is £1170pm
At 5% that is £1241pm

You should be able to find a deal somewhere between those two, I would think.

That was to give you a flavour but you really should speak to a mortgage advisor.

https://mortgages.halifax.co.uk/?WT.ac=calctoolsrempod

Put your numbers in here for a rough idea. Obviously it's just one provider's figures but it'll give you a ballpark.