My mortgage deal, WW3 starting, apparently Japanese stock market is crashing

[BeachBae]

Which affects the US market according to X, which I assume affects ours.

My mortgage deal is due to expire in October. The new deals are up on my app. I've been holding out for rates to drop.

Should I snap up a deal now, this morning?

If you want certainty then yes , fix at a rate you can.afford .
All investments are all over the show at the moment given the worry about the American economy on Friday .
As for WW3 I don't think that'll happen

When I got my mortgage deal in a pretty volatile time last year, the rate I got was 'reserved' - if it improved subsequently between then and the point of actually going for it I'd move to a more favourable rate if that was available, or stay on that one if rates went the wrong way. I had several months like this and improved rate about 3 times. This was apparently normal practice.
Worth asking if this is the case with yours?

The current cheapest deal is fixed for 7 years, 4.28% and only 50 odd quid more than I'm paying now.

Really? What I'm seeing on X about Iran is very worrying.

Can you afford to fix now and then if something cheaper comes up between now and October you could switch to that? They usually don't make so swap onto the new deal til your current one expires.

I wouldn’t take anything from X at the moment, it’s full of misinformation and half truths. As PP has said, see if your bank will let you reserve that rate and move to a better one if one becomes available

Please don't base your financial decisions on what you're reading on twitter/X. That's mad.

I’d bite the hand off that rate

Surely the past week has only served as a reminder that social media is not a reputable source 🤦🏻‍♀️

https://www.bbc.co.uk/news/articles/c6p224j24x0o

Can we please stop pretending everything on X is crap? Yes, the stock market is tumbling. Things are looking dicey in the Middle East, Ukraine and South-East Asia.

You’d be insane not to fix tbh.

If World War III really kicks off, you will never have to worry about paying off the mortgage.

....and then you link to a BBC news article. 😅

4.28% for 7 years seems pretty good, but you need to consider what the early repayment charges are, the fee, and what you could get from elsewhere.

However, it might be possible to book that rate either for free, or for a reasonably trivial sum and then it will be valid for up to 90 days. Then if you later find you can get a better rate elsewhere, you can just take that deal up instead.

Ah sure if the war starts you probably won’t need a mortgage anyway

I linked the first article that came up when I goggled stocks crashing. There’s multiple news sites. Take your pick.

Why is anyone worrying about fixing their mortgage if WW3 is about to kick off? The most dangerous thing at the moment is not the threat of a world war, but the amount of "people" spreading unrest and panic with hyperbole

I would much rather fix at a rate I knew I could afford then hold out for a drop that may never happen.

Rather be disappointed at missing out on a lower rate than waiting for a rate that could go U.K. and be unaffordable

Stop taking your 'news' from social media.

If WW3 was to happen your mortgage deal would be the least of your worries.

If I fix, how does it work if I had to go and stay with relatives and wanted to rent the house?

If there’s greater economic weakness it can be an argument to cut rates faster. Not saying turn down a great rate, just that this isn’t a reason to panic.

If you wanted to rent the house you’d have to get permission from your bank and maybe change the loan to a buy to let one. Buy to let loans tend to demand at least 25% deposit and a higher interest rate.

if you need more money could you make money with a lodger? I had one before dc and it really helped me with the mortgage.

Stock markets are complicated things, it seems in Japan it's due to a combination of changes in interest rate in Japan, predictions of a correction in the market (partly due to the US but also Japan itself) and as usual people taking out profits for fear of a bigger drop to come. You need to be seriously on top of financial markets to make personal decisions made on where they are and where they are going, and even then you will probably be wrong.

Regardless of anything else going on, from 6 months prior to your deal ending always secure a deal with your current lender. Then check every so often if it’s lower cancel and secure the next deal with your current lender.

You can cancel with no fees or charges if another bank has a much better deal. But always hedge your bets and secure a deal with your current lender from 6 months out while looking at other banks etc. Puts you in the best situation and gives you options

I would be reluctant to fix for 7 years, i would prefer 4 or 5.
If you have a residential mortgage a Lender will usually agree to allowing you to rent it out for a temporary period. Usually less than 12 months I believe.

I've had to fix at 5.39% for 5 years recently (80% LTV). 2 years would have been around £150 more pcm, everything else came with fees that would have had me worse off in the long run.

I did get told at the time that I could arrange for a better deal if interest rates fell, though they didn't until my renewal was due. It's always worth getting a deal now and then waiting to see what happens in the meantime; your rate does sound good and I'd expect your wages to go up while your repayments stay the same.

So if you can afford it, go for it.