Mortgages ending next year (past 6 months from now)

[Flowersonthewall6]

Just wanted to pass on some information from having a few chats with a broker and the bank.

Our fixed deal ends next summer so we aren’t within the 6 months to fix another deal with our current provider. This is what we have been suggested to do:

This week we are going to get a fixed deal with another leader and sit on it till early next year, they tend to be valid for 6 months.

Early Next year we then have three options:

1. rates have gone crazy so we take the fixed deal from this year and pay our early repayment charge
2. rates have stabilised or gone down and we wait till the summer to remortgage
3. rates have gone up but not crazy however our current bank has a deal that we can secure to move to at the end of the summer (6months before the end of current deal) but we can lock it in early in the year. Also checked these can be cancelled and another deal taken if the rates decrease over this 6 months.

Just incase anyone is on the fence and wants options. If you deal finishes within the next year it may be worth getting a mortgage in principle now with a broker and sitting on it.

Yes this is a good idea. We did this in June and sat on it for 2 months. Ended up paying the ERC and remortgaging earlier in the end.

I’m in the same place, but agreed mine in principle in July so I think we’ll almost certainly lock in in Jan. It’s a rise but not much and guarantees it’s affordable for 5 years - which I will gladly take.

Good post thank you, in same position. My broker said rates unlikely to go much higher so the 6% + we are seeing might be the peak. All depends on inflation and what the Bank of England do over the next few months.

BoE is expected to increase rates by a minimum of 0.5% on Thursday.

Mine doesn't end until December 2023, I feel completely stuck.