Kicking myself about not fixing mortgage rate

[errnerrcallnernnernnern]

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.

Take it and run

I got a quote for 4 late yesterday afternoon and it was pulled from the market overnight. Today that product came back on at 4.5. Could kick myself I didn’t snap it up before 5pm yesterday. 😬

Yeah, I would.
We can't buy for another few years, I was looking into mortgages for planning ahead purposes over the last 6 months and the difference then and now on high LTV mortgages for FTB is already over 2% points. By the time we are ready, I fully expect to be paying over 6% and we are already downshifting our expectations and looking to spend 10% less on a house to make up for the higher interest rates and squeeze on affordability assessment.

OP I would just grab that rate - rates are changing fast and are being pulled overnight each day. Shopping round/going to a broker may take you days in comparison to staying with your existing lender (who may also pull their rates soon too).

@errnerrcallnernnernnern Do you mind me asking who the offer was with? We are in the same position.

Now feeling sick...i very nearly fixed for 5 years at 0.4% half a year ago, but paying the early exit fee meant I dilly dallied with the decision and before I know it my fixed rate of 1.2% ends in Jan and rates are 4 times the amount 😬

Market is pricing in 6% my mid 2023

3.9% is a bargain.

I’d take it Op. it’s a good rate. My first flat was 4.5% rated have been artificially low for last 20 years and thus over now. Fix for peace of mind.

Not at all. It’s with the Halifax.

I think that's fairly good but the big question of course is can you afford it. I doubt you'll get much better any time soon. Another 0.5% isn't a crazy or unexpected increase in normal times.

Just to add, rates were about 3-4% 10 years ago, and no one was really making a fuss then. They have been extremely low recently and it's just the comparison.

I'd fix right quick

Take the rate if you can afford it, I've found if you have nothing complicated and know how to search a broker isn't needed.

I fixed at 3.69% for 5 yeara on Monday with our current mortgage provider. Had a look on s couple of price comparison sites to check it was a decent rate, which is was as there are no product fees etc

Realised it was possible I might get a bit of better rate if I contacted a broker but knew how much info we would need to provide and that there was a good chance products would be pulled. With my current provider it was just a click of a button

Better to get a decent but perhaps not the very best rate than hold out for the best rate and end up with an awful one!

I would go for fix at 3.9 op.

We got a 5 year fix of 3.59 agreed today. That was through a broker.

Don’t piss about desk are been withdrawn as they are no longer viable for them to offer dither and you’ll miss out

I would book an appointment with an independent financial advisor as they will look at the whole of the market and also often have access to products/deals that aren't available online.

I have been looking myself, but not ready to proceed yet, and the 3.35 rates that were showing a couple of years ago have been pulled. The best I could see today was 3.8% for a 5 year fix so your 3.9% seems pretty good.

But I will use my IFA as usual when I can actually remortgage.

I've had four deals pulled in the last two days. Still no offer pending the latest submission at 4.34% for five years. I'm extending my mortgage for five years to offset the increase in rate.

I use a broker, the desperation in his voice as everything is disappearing in front of his eyes is very real.

Yes, definitely agree with this, in fact my deal that is expiring is at 2.9%.

I can see you've gone ahead with it now OP. Good idea I think. I've heard that some providers are going to stop fixed rates completely.

Don’t waste time thinking about it, so many products are being pulled, interest rates are only going one way for some time.

Massive disclaimer, but I thought some of the rumours about stopping fixed rates were because rates are expected to peak next year (but no one knows exactly when) so for example a 10 year fixed rate taken just before the peak rate would end up being more expensive for customers than a variable rate?

Take the five year fix today before it all goes to shit

How does anyone know they will peak at 6%? And now long for?

Thats what I’m wondering as well @WorrieaboutFIL