Another remortgaging advice thread

[Charl881]

Our mortgage runs out in September. We had an amazing rate of 1.34% but annoyingly at the time only took out a two year term.

We currently pay £810 a month. If we take another two year fix it will be about £860/870 from what I can see, so a manageable increase. A five year seems to be the more sensible from what I’ve seen but that’s going to be over £1k a month.

We could manage it but would have to massively cut back elsewhere especially with energy bills going up. We’re then obviously in a lot more precarious situation if one of us should lose a job / we have a second child etc.

Does anyone have any advice on best thing to do?

We have a meeting with the mortgage advisor next week but just interested in views

Interest rates are likely to go up tomorrow unfortunately.

There isn't a huge differential between 2 & 5 yr fixes right now (your numbers if £200pcm difference surprise me) - I'd shop around and find the best 5 year fix. Would question if you need a broker

Yeah I’ve just double checked and the two year one was discounted than fixed. I thought it was lower than the last time I checked.

Broker is a friend so no charge and might as well see if he can get anything better although anticipating it won’t be much difference.

Do you think rates will go up by much? Just wondering whether to just take our current providers up on their 5 year fix, which is the best around or at least in line with the best I’ve found online. Rather than waiting to speak to the broker next week.

I think 2 yrs is risky, any 3 yr options?

we fixed for 5 with a plan to overpay as much as possible

@dhair We overplayed a bit this time but don’t think we’ll be able to next time around!

Just realised we can’t switch until 30th August else we’d have to pay part of our early repayment fee so guess I’ll hold fire for now.

Just kicking myself for not fixing for longer two years ago.

hindsight is a wonderful thing but i wouldn't think they will be lower in 2 yrs

Wondering whether it’s worth us just paying the £328 early repayment fee to fix at a better rate rather than wait until the end of August and have no fee but potentially a higher rate.

Existing company are offering 3.09% for five year fix.

rates are going up again tmw so that rate may have changed

Yes, I'd pay the early repayment fee and fix.

I just paid €380 in early repayment fee and fixed for 10 years at 2.85% (in Ireland, so rates are different).

Any ideas when there might be another increase in mortgage rates? Current mortgage can't be refixed until November without having a charge attached to it and I'm worried that by November things will be even worse 😞

today

After the rise today I mean, sorry should have made that clearer. I know there's a rise today and from what Im reading it sounds like there will be continued rises but just wondered how soon that is likely to be?

If you are within 6 months of a rate ending a new lender will normally allow you to reserve it once the application has been submitted. Most existing lenders allow you to book a new rate up to three months before expiry of the current rate so you should be fine.

they meet every 6 weeks I believe. they are predicted to keep going up for a bit

You can oftentimes fix six months in advance so look into it now for your end august/November fixes - I’d lock in a rate now for then if you can as they are only going one way

Thanks everyone! I've requested a chat with a mortgage broker to see what the best options are. I don't usually stress about these things but it's all getting so out of control so fast I feel like I need to be on the ball with it all!

So update. The 3.09% rate had disappeared today (cursing!). Fixed in for five years at 3.23%. Mortgage advisor did discuss the riskier move of two years in case they go down but we didn’t want to gamble.

We used London and Country free online brokers for a 5 yrs fix on a £250k mortgage. Contact them as they have access to the whole market and they are widely recommended on here.