Anyone due to remortgage next year? Worried

Ilikeviognier · 2022-10-16T07:40:20+00:00

Just that. Due in July. Dithered about paying ERCs earlier in the year- decided not to as it was 2 percent. Now feel have missed the boat there but also worried sick rates will be 9 percent or something next year. Could look to overpay but clearly that doesn’t solve the rate problem. Aargh.

Losethename · 16/10/2022 08:48

I'm am and I'm worried. Dh isn't as worried as me though. When the energy prices were due to spike even more he said it'd stabilise as the government would step in, and they did cap it a few days later. His reasoning now is everything is up in the air as a reaction to their ludicrous budget which has lost confidence and affected the interest rates so they'll be making changes going forward which will instill a little more confidence eventually and the rates will be affected again and stall or come down a little. He's usually spot on at calling things so I'm trying not to worry and see how things are when our term is up but it's hard isn't it. Noone really knows what will happen.

PivotPivotPivot123 · 16/10/2022 08:49

I think rates will come down x

AntiHop · 16/10/2022 08:51

We're in exactly the same position. Our five years at 2.5% ends in August. When we took the mortgage out, I really wanted to take a 10 year fixed. But the broker said that was foolish as we'd be likely to want to move or borrow more to extend during that time, and he actually refused to arrange that product for us 😩

We'd be in such a strong position now if we had been 4 years into a 10 year product.

I'm bloody terrified.

tiredofthiisshit21 · 16/10/2022 08:55

Am in the process of remortgaging for my fixed rate which comes to an end in March. Managed to secure 3.53% for 5 years which is still a lot more than we're currently paying.

Don't forget you can lock in a new rate up to 6 months before your current fix ends.

Original poster

Ilikeviognier · 16/10/2022 09:17

3.53 actually sounds pretty good right now 😳. Yes I knew about the 6 months before but it’s whether you’d want to at that point - that would take us to January and it’s predicted Bank of England will increase rates again in nov and Dec so the base rate could be around 5 percent by year end 😳

OP posts:

tiredofthiisshit21 · 16/10/2022 09:28

Ilikeviognier · 16/10/2022 09:17

3.53 actually sounds pretty good right now 😳. Yes I knew about the 6 months before but it’s whether you’d want to at that point - that would take us to January and it’s predicted Bank of England will increase rates again in nov and Dec so the base rate could be around 5 percent by year end 😳

Yeah I locked that in about 3 weeks ago before things started going a bit mad so feeling quite lucky.

caringcarer · 16/10/2022 10:44

My son has money in a government LISA and can't get it out with government bonus until end of April 2023. He has almost enough for his deposit. Now he says if rates are sky high in April he won't be able to afford to buy. He thinks he could pay 4.5 percent tops. He won't have equity so won't get best rates offered. Looked last week and best we could find was 5.7 percent.

Pamparam · 16/10/2022 10:57

Ours ends October next year. V worried. Probably won't seek to end it early though and cross every appendage that rates stabilise by then.

Original poster

Ilikeviognier · 16/10/2022 11:07

I know. I’m even tempted to hang around on SVR for a bit and pray it comes down 😳

OP posts:

Alarae · 16/10/2022 11:22

I'm currently on 1.94% and remortgage is due in May. I'm just praying rates fall a little as these were a knee jerk reaction to a shit show of a budget.

southeastlady · 17/10/2022 05:26

Yep! Our 1.79% ends in April. Got a broker looking for us now, he’s coming round Wednesday to tell us why he’s found.

Thinking of taking a chance on a tracker rate this time

southeastlady · 17/10/2022 05:26

What not why :)

Unexpecteddrivinginstructor · 17/10/2022 06:28

southeastlady · 17/10/2022 05:26

Yep! Our 1.79% ends in April. Got a broker looking for us now, he’s coming round Wednesday to tell us why he’s found.

Thinking of taking a chance on a tracker rate this time

We are fixed at the moment but for a long time we were on a tracker and it served us well. Worth looking at the different interest rates.

overgrowngrass · 17/10/2022 06:33

Yep due to end in June. Currently on 1.32% and really worried about the rate increase. It’s so hard to know what to do. My ERC is £2.2k, and the rates available right now are not great anyway. I am saving like mad to try to either overpay a bit come June or to tide over the higher repayments for a while. It’s scary.

LiftyLift · 17/10/2022 06:38

Ours is up In December next year. Currently on 2.4% which is fine, if we have to go to 6% we will be paying an extra £700 per month. We can afford to pay that thankfully, but there will be less money for treats, coffees, eating out etc. Small businesses we usually support will unfortunately be getting less custom from us.

RudsyFarmer · 17/10/2022 06:41

Rates won’t come down as they were on their way up but they might not go up again quickly.

SweetSakura · 17/10/2022 11:26

AntiHop · 16/10/2022 08:51

We're in exactly the same position. Our five years at 2.5% ends in August. When we took the mortgage out, I really wanted to take a 10 year fixed. But the broker said that was foolish as we'd be likely to want to move or borrow more to extend during that time, and he actually refused to arrange that product for us 😩

We'd be in such a strong position now if we had been 4 years into a 10 year product.

I'm bloody terrified.

Oh no! That was unfair of the broker. Everyone's position on risk is different.
We took out a 10 year fix just over 4 years ago. I have spent the first few years wondering if I was too risk averse but feel very relieved now. It sees us through till most of the children have finished school at least!

22pink · 17/10/2022 11:39

caringcarer · 16/10/2022 10:44

My son has money in a government LISA and can't get it out with government bonus until end of April 2023. He has almost enough for his deposit. Now he says if rates are sky high in April he won't be able to afford to buy. He thinks he could pay 4.5 percent tops. He won't have equity so won't get best rates offered. Looked last week and best we could find was 5.7 percent.

He can get it out any time if it’s for his first home.

PetalLeaves · 17/10/2022 12:21

We’re in the same boat and absolutely terrified. If current rates continue, we could be facing an increase of £700 to our mortgage a month which is devastating.

Hjgfer · 17/10/2022 13:51

We chucked as much as we could at our mortgage since we opened in in 2019. Thankfully this means that even with the interest rate rises we’re still looking at knocking £300 per month off the repayment amount if we remortgage in April.

Im due a significant amount in compensation before then so I am hoping it all works out and we’re mortgage free.

SweetSakura · 17/10/2022 17:11

@PetalLeaves I am so sorry, it's such a horrible jump and at a time when all bills are going up too.

Clairejay34 · 18/10/2022 22:44

Ours is due up in January. The 5 year fix was going to cost an extra £300, we have went with a 10 year one as it is £190 more (currently £660 and will go up to £850). Not sure if we're doing the right thing as interest rates may drop back down and we will be fixed for 10 years but couldn't afford the 5 or 2 year fixes.

Namechanger355 · 22/10/2022 13:17

Gone is the era of free money so we won’t see mortgage rates of below 2% any time soon - inflation and higher rates is a global problem

but over the next 12 months, provided our political situation improves and the uk becomes a safe location again for investor capital - I think they could lower from 6% and stabilise around the 4.5%-5% mark which would be more in line with global rates given global inflation