Mortgages what’s everyone’s plans

[Clockwatching54321]

Anyone got a deal ending next year?

Our 5 year fix runs out next summer and I think
we have 3 options:

1. pay the early repayment charge now and get another fix (not the best option at the moment)
2. get another mortgage deal but not execute until the last minute (6 months from now) and pay the early repayment charge then (hoping the deal doesn’t get pulled)
3. wait it out on the 2% fix and overpay as much as we can and see what happens next summer

Do you think interest rates will fall under another Conservative government?

They're going to rise higher aren't they?

That's why people have been giving up their 1.4% fixes to remortgage at 4.5% or 6%.

Madness isn't it! You'd think under £xx there'd be no ERC

We're in this position but with a higher LTV (about 70% on current house prices).

We decided to pay the ERC and get the best fixed deal we could. We've just been approved for a 5 year fix at 4%. I'm happy with the decision. I worked out that it was an extra 2000 now or an extra 17000 over 5 years if we ended up on a 6% deal next summer.

We have young children and I know we can meet the 4% repayments. 6% would have been a push and 7% a nightmare. I can sleep for 5 years now, even if rates miraculously plummet and we end up losing out

@Bobbins2022 I did something a bit different, but with the same reasoning, I could afford my fix (2.48%)& the most I could lose out on was 2.48% & whatever they dropped to (I don't think they'll drop to zero anytime soon!). That seemed the best way to look at it IMO

Rates are already coming down again, so I wouldn’t go for a long fixed rate now. We’re holding out until our fixed rate ends at the end of next year. We’ve got a small mortgage left now though, so we can take the risk.

Our fix ends in Feb 23, with just over 4 years left on the mortgage.

Have decided on option 3, with a plan to try to reduce the term just a little with overpayments. We have other debts which will be almost clear by March 23, so we’ll use the funds we are currently committing to paying off the other debts towards the increase in the mortgage (and hopefully some overpayments).

If we had a longer term remaining on the mortgage we would have gone for another fix but with less than five years remaining we don’t really want to pay the fee for a two year fix. Where’s that crystal ball?

Mine smashed due to constant changes 🙇🏻‍♀️

by Dec/Jan we should have a slightly better idea of where we are at & be better positioned to decide whether to fix or not.

I'm not over paying currently because I'm still looking at porting so it disadvantages me to over pay.

I need to find a better savings account though.

Difficult one. The gilt yields seem to be over their recent price spike due to the mini budget.

OTOH I think the BOE are probably well scared after how the markets reacted to the mini budget, and they have been dragging previously on rate rises. I'm not sure they will want to risk another low rate rise in the hope they will muddle through. My guess is another 0.5% rise in rates for November minimum.

Whether this is priced in current mortgage rates I have no clue.

Canada are today, ECB tomorrow and Fed next week before the BOE. I expect them all to be up.

Base rate to go up again next Thursday?

That's the oddity in this isn't it? The gap between the base rate and mortgage rates is large as banks rush to manage the risk of an unstable economy. You'd like to think that as the economic outlook becomes clearer the gap will close to mortgage rates could still go down even if the base rate continues to rise.

What a headline!

The Metro doesn't shy away from a bit of sensationalism, does it @oiltrader?

Although, people having to find hundreds of pounds extra every month because of our government is a pretty big deal, I guess.

I'll wait it out until next summer, a lot can change.

And even then I'll also look at a standard variable for a bit if the markets are still twitching like a spooked mare.

Fixed is not always best in a volatile market. The finance houses don't want to be exposed in future years, so they load their risk provisions into the retail mortgage products.

ECB just announced +0.75%.

And yet mortgage interest rates are down an average of 0.15% week on week. The rates on personal loans are significantly lower than mortgages at the moment. Weird times.

Mortgage fix expires Sep 23. I'm planning to overpay as much as I can before then then tbh I might switch to a variable rate with an option to fix later if the variable rate is lower. It's a gamble yes, but nothing seems certain these days.

@PatChaunceysFruitCake

I don't know how the mortgage rates are determined. I believe that something called an interest rate swap determines the price - the base rate is just a general indicator that the price of money is going up.

It may be that the banks feel that it is pretty much 100% that the rate will go up on 3rd November - and therefore they don't feel in any rush to change the rates and are waiting until then. It is (arguably) a competitive market, so if they are overcharging then you might expect lower prices to come in.

www.reuters.com/world/uk/uk-banks-start-cutting-truss-premium-mortgage-rates-slowly-2022-10-27/

My fixed rate of 2.4% is ends in July 2024. My plan is to sit tight and ride the storm and pray things have settled down by then. It would be difficult to remortgage at the moment as we renovated our house (inside is 90% finished) but we have done nothing outside so from the kerb our house looks rubbish. Funded nursery hours for DS kicks in from September 2023 and we will be finally rid of nursery fees when DC starts school in September 2024. So the plan is to pay off debt from the renovation whilst putting any further works on hold (apart a small piece of work inside)

Interest rates up again.

Average tracker mortgage to go up by £881 a year.

Variable £555

Some people coming out of deals will be looking at £400 a month on top of what they're used to paying