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AIBU?

Kicking myself about not fixing mortgage rate

84 replies

errnerrcallnernnernnern · 28/09/2022 15:56

Hi, our mortgage expired a year ago and we have been paying the variable rate ever since. We were offered a rate of 3.4% for a 3 year term.

I have just called my bank now and have been offered a 5 year term at 3.9%.

I just wanted to get your views on whether you would take 3.9%, or should I shop around?

I am inclined to either to lock it in for 5 years or 3 years.

Thanks! Happy to provide more details if needed.

OP posts:
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Am I being unreasonable?

41 votes. Final results.

POLL
You are being unreasonable
39%
You are NOT being unreasonable
61%
Testina · 28/09/2022 16:00

Why ask us if you should shop around, when you can literally do so with the device in your hand right now? Why wouldn’t you shop around?

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errnerrcallnernnernnern · 28/09/2022 16:05

I suppose I’ve already shopped around by looking at the current rates offered by the big banks.

I’m thinking whether I would get a better deal with a mortgage broker.

OP posts:
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Testina · 28/09/2022 16:28

Again, why wouldn’t you speak to a mortgage broker. It’s free.

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Paddingtonthebear · 28/09/2022 16:44

Speak to a broker and shop around but you might not get any better than that

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errnerrcallnernnernnern · 28/09/2022 16:47

@Testina you’re not really helping! Just leave it be then.

OP posts:
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3WildOnes · 28/09/2022 16:52

Personally I would fix at 3.9. I doubt you would get a much better at the moment. Would you have to pay fees to change your provider too?

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hanginthere12 · 28/09/2022 16:56

Hey.

We just remortgaged two weeks ago and our deal was 3.5% for a 5 year fixed rate. Best deal we could find at that time. Take the 3 year fixed while you can.

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Quincythequince · 28/09/2022 16:57

Testina · 28/09/2022 16:00

Why ask us if you should shop around, when you can literally do so with the device in your hand right now? Why wouldn’t you shop around?

Because not all websites list all deals and OP May miss one.
Because there may be an FA on here who has some insight.

Why bother posting - seriously.

Anyone can look up anything, at any time. But sometimes it’s quicker to ask and people on here are quite sympathetic and helpful.

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Poppyseed14 · 28/09/2022 16:57

Your rate will also depend on your LTV. If that's under 60% you may well find a better rate. I'd run it through an adviser first just to see what they can offer.

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hanginthere12 · 28/09/2022 16:59

I highly recommend going to a mortgage advisor though. It's him that found us the deal of 3.5%. Can't say my bank would have offered us the same, maybe more. So yeah defo seek some help from an expert as it may be worth trying to get the best deal possible, before it's too late. x

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Drywhitefruitycidergin · 28/09/2022 17:00

Personally I would fix - I wish I could. Kicking myself for similar but more complicated situation- financial advisor appt on Tuesday can't come too soon!

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RedWingBoots · 28/09/2022 17:07

Take the offer now before it is pulled from the market by Friday.

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errnerrcallnernnernnern · 28/09/2022 17:08

Quincythequince · 28/09/2022 16:57

Because not all websites list all deals and OP May miss one.
Because there may be an FA on here who has some insight.

Why bother posting - seriously.

Anyone can look up anything, at any time. But sometimes it’s quicker to ask and people on here are quite sympathetic and helpful.

Thanks Quincy!

OP posts:
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Mummybud · 28/09/2022 17:18

errnerrcallnernnernnern · 28/09/2022 15:56

Hi, our mortgage expired a year ago and we have been paying the variable rate ever since. We were offered a rate of 3.4% for a 3 year term.

I have just called my bank now and have been offered a 5 year term at 3.9%.

I just wanted to get your views on whether you would take 3.9%, or should I shop around?

I am inclined to either to lock it in for 5 years or 3 years.

Thanks! Happy to provide more details if needed.

I’d fix with your current bank at 3.9%. I haven’t heard of cheaper fixes (although it will depend on your LTV). If you go through a broker they might find you something marginally cheaper, but you’ll pay a fee and have to go through application, valuation etc. Lenders are pulling products constantly and interest rates may increase again any day. If you go with your current bank you could get it sorted in the next couple of days, whereas another lender could take weeks. I would lock in using the easiest route - it’s only going to get worse.

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Outnumbered99 · 28/09/2022 17:22

Speak to a broker now, tonight, or first thing tomorrow. Then see where you are, hopefully you will get sorted with a good deal ("good" for present conditions)

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Circleoflife2057 · 28/09/2022 17:22

The rates are increasingly daily by some providers. 3.9% is a decent rate, you won't find much better. Fix it now!!

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Zogster · 28/09/2022 17:25

We've just locked in at 3.51 with Virgin. I'd recommend trying a broker but be quick.
If you already have an offer for 3.9 aren't they obliged to hold that rate until you sign the paperwork? We had to sign and had a few weeks to do so... That would allow you time to shop about whilst holding the current offer?

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3ShotsOfEspresso · 28/09/2022 17:27

3.9 is decent right now. I’d fix for 5 depending on exit penalty (Santander suck, for example). Is you penalty a decreasing fee or fixed amount?

Ultimately, fixing gives you a level of stability. My last two mortgages I went 5 year fixed and sometimes I was up £200 a month, sometimes down, but it didn’t matter because I could afford it.

Just moved last month, fixed for 5 again (thankfully) so whether interest rates go up or down, we know this figure for our budget.

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gogohmm · 28/09/2022 17:28

Rates are increasing and likely to go higher fairly quickly. I would fix myself as soon yet are pulling cheaper deals.

For comparison my first mortgage in 90's was 5.9%!

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Itsutterlybonkers · 28/09/2022 17:32

It does of course depend on LTV ratio. But that isn't any worse than the couple of friends I know who have recently fixed a new rate. I would definitely fix for at least 3 years but that's not based on any expertise, just my own view. I would also advise you contact a mortgage broker but swiftly.

What a horrible time it is to be dealing with mortgages.

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BaileySharp · 28/09/2022 17:32

Grab it. A broker might be able to get a better deal but only maybe. I found the amount of stuff I had to provide was quite time consuming which isn't ideal right now when rates are rapidly rising

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GroggyLegs · 28/09/2022 17:34

Just fix it.
Rates are only going one way & if you can afford to pay that fixed amount why on earth would you gamble with your home and sit with the anxiety of watching rates potentially rise?

(I am a committed fixer).

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errnerrcallnernnernnern · 28/09/2022 17:37

Thanks everyone! There is no product fee or exit fee and we are staying with the same bank.

Yes, it has been locked in. You’ve been very helpful, I will go with the 3.9%.

OP posts:
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AnyFucker · 28/09/2022 17:39

I would snatch their hand off

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AllThingsServeTheBeam · 28/09/2022 17:39

We can change on the 1st and I'm looking to lock in for 10. I'm really worried

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