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Original poster

Remortgaging in summer what’s everyone’s plans?

29 replies

Legoladyp · 28/04/2023 14:10

Just wondering what everyone was doing whose fixed rates finish this summer.

We have secured a new deal that’s 5 years at 3.91% and an increase of around £250 which isn’t horrid but still a bit annoying when it’s just interest. Doesn’t execute until Aug.

With the new talk that rates might be going down, are people more inclined to do a two year fix or trackers at an higher rate over a lower 5 year fix?

Or are we expecting that being on 3.91% might be the new normal? I feel the banks are pushing 5 year fixes with the lowest rates which makes me think the banks are expecting them to go lower…or maybe I’m over thinking 😂

OP posts:
eurochick · 28/04/2023 14:35

We will also need to remortgage in the summer. I'm not yet sure what we will do. Historically 4% has been around average for mortgage rates, I believe, so your deal doesn't sound bad. But we might look at trackers as well as fixed rates.

Original poster
Legoladyp · 28/04/2023 16:21

Yeah we are in two minds, keeping the potential deal and waiting to see what happens. Just unsure whether to lock into a 5 year deal.

Guess no one knows what’s going to happen

OP posts:
instantpotnoodle · 28/04/2023 16:43

Our broker said between 2.5-4.5% is not a bad place to be. We’re fixing for 5 yrs at 3.79%

Heatherbell1978 · 29/04/2023 12:39

Current fix ending in Sep and we just saw a mortgage broker yesterday. Decent 5 yr fixes out there because they're factoring in rates starting to lower...so I think we'll go 2 year fix on that basis. Not totally against 5 years but waiting for him to come back with the numbers. We also want to release around £50k for school fee planning within next 5 years so trying to work out best time for that too.

Original poster
Legoladyp · 29/04/2023 14:46

@instantpotnoodle ohhh who have you found with 3.79%, I might take a look.

@Heatherbell1978 if you wouldn’t mind it would be lovely if you could come back and let me know what rates you get for 5 and 2 years.

I will pop back to our mortgage broker and see what they suggest

OP posts:
ChildOfBabylon · 29/04/2023 15:18

Historically the average BOE base rate itself has been higher than 4%

From 1995 until 2022, the average mortgage interest rate in the UK averaged 5.62%

If you go back further you will find the true historical average BOE base rate is more like 6.9%

Mortgage rates are always higher than the base rate.

It is widely reckoned that BOE base rate will rise at least twice more this year before a plateau, and even if/when rates come down it will be slow to come down and you can bet banks won’t pass on the falls straight away either.

sadafteemove · 29/04/2023 15:23

@Legoladyp We need to remortgage end of the year. Haven’t checked what the latest is but when we chatted to our broker at the start of the year our best offer was 4.91%!
I think I’ve convinced myself to be happy with anything from 3.5 to 3.99%!

worktired · 29/04/2023 16:26

I'm struggling as I only need a mortgage for 2 years and for a relatively small amount (I'm old and almost finished paying it off, I know I'm very lucky to be in this position).

So many lenders won't touch me or the mortgage arrangers are noticeably less enthusiastic/helpful - I'm guessing they work on commission?

Currently looking at fixed for 2 years at 4.79%.

instantpotnoodle · 29/04/2023 17:20

Legoladyp · 29/04/2023 14:46

@instantpotnoodle ohhh who have you found with 3.79%, I might take a look.

@Heatherbell1978 if you wouldn’t mind it would be lovely if you could come back and let me know what rates you get for 5 and 2 years.

I will pop back to our mortgage broker and see what they suggest

Barclays but we’re in the lowest LTV band

OhFFS! · 29/04/2023 17:28

@worktired we are one year behind you. We will probably go with our current lender if only to avoid going through the hassle of affordability checks. Thankfully even at a high rate of interest, it won't be too scary a rise due to the length of mortgage left.

JustGotToKeepOnKeepingOn · 29/04/2023 18:11

I spoke to my FA yesterday, he recommended getting a fixed rate product not a tracker as the interest rates are only going one way at the moment. And that's up!

Original poster
Legoladyp · 29/04/2023 18:39

@JustGotToKeepOnKeepingOn thats interesting. I think I might fix for 5 years for the safety but it will be annoying if the rates do come down eventually.

OP posts:
ThankmelaterOkay · 02/05/2023 20:07

Legoladyp · 29/04/2023 18:39

@JustGotToKeepOnKeepingOn thats interesting. I think I might fix for 5 years for the safety but it will be annoying if the rates do come down eventually.

Maybe appreciate what you have had?

Charcol · 04/05/2023 21:26

We are due to remortgage in Oct. Recently got quotes to remortgage via current lender.
They are offering 4.19% 5 yrs and higher for 2 and 10 yrs.

Reading the above, and the news. I defo think 5 yrs is best. I do see rates being much lower than currently in 2 years. So over the term of 5 years... I can see you losing much if anything.

Gonna try approach a broker. they can scan the market for best rates. but the above is a starter for 10.

Original poster
Legoladyp · 05/05/2023 07:31

@Charcol good point does the first 2 years off set any lower rate if it falls later on. That’s a good way of thinking about it.

I’ve just seen most rates have risen slightly, if your mortgage is coming up for renew in the next 6 months secure a new deal with your current provider now. Most big banks allow this where it doesn’t start until the end of your deal, can cancel upto the day before the the end of your current deal with no cost / charges. I never knew about this but want to spread the word if others don’t know too!

OP posts:
Original poster
Legoladyp · 05/05/2023 07:39

@ThankmelaterOkay not sure what this means. This is suppose to be a helpful thread and I really don’t want it de railing with “be happy the rates have been so low” or “we paid much higher rates back in 92”. That is our current situation and we are talking about the here and now.

Please can you refrain from commenting unless it’s something helpful and advise. Telling someone to be happy it was better before in my view is the same as saying to someone who had their leg amputated, “well Atleast you had 20 years being to walk before this, think of the positives”

OP posts:
Desperatelyseekingcommonsense · 05/05/2023 08:05

I’ve agreed a 4 percent renewal with my bank but only for 3 years. Hoping interest rates go down in that period. Ren in July.

BigGreen · 05/05/2023 10:55

I'm so grateful for my stagnating wage and record high house prices Grin

We need to remortgage in July so going to try to overpay a lump sum and then fix.

JustGotToKeepOnKeepingOn · 07/05/2023 21:37

I'm with Nat West and I needed to remortgage in January. Nat West got in touch with me last August and let me lock into a new fixed rate then, ready for when my existing deal expired.

That saved me ££ as the interest rates went up in that time. If you need to remortgage in the summer it might be worth seeing if you can sort something now? Interest rates are only going one way at the moment...

FiftyNotNifty · 07/05/2023 21:44

We are due up in October so am starting to look around.

What is the best way to find a mortgage broker? Do you pay them? We've never really shopped around as what our existing provider offered was good, long term fixes on low rates. But I know that's a thing of the past and I'll need to be a bit more savvy

coolnice · 07/05/2023 21:49

Legoladyp · 05/05/2023 07:39

@ThankmelaterOkay not sure what this means. This is suppose to be a helpful thread and I really don’t want it de railing with “be happy the rates have been so low” or “we paid much higher rates back in 92”. That is our current situation and we are talking about the here and now.

Please can you refrain from commenting unless it’s something helpful and advise. Telling someone to be happy it was better before in my view is the same as saying to someone who had their leg amputated, “well Atleast you had 20 years being to walk before this, think of the positives”

This ^^

So sick of people being dicks about all this

The higher rates are screwing so many of us

Bouledeneige · 07/05/2023 23:10

Interesting thread thanks OP. I'm starting the research on my new deal due in August. Currently on 1.99% with Nationwide for 2 years. Was shocked that their letter to me said if I did nothing they would switch it to a 7.49% rate. I've used their website and they are offering me deals like 3.99% (initial rate) 4.5% full rate including all charges - this is a 5 year fixed rate. I usually go with a fixed rate - but have had a tracker - and having read this I think I will go with a fixed rate. Its very surprising to me to see 5 years at better rates than a 2 year and other models - that's a very unusual situation. I only have 8 years to run and am in the lowest threshold LTV (15%). I will check deals with a broker though.

I guess the benefit of staying with my current mortgage company is to minimise the charges and penalties - its £999 fee for the rate above. Can I just check what fees you are expecting with the deals mentioned above?

mswales · 07/05/2023 23:21

FiftyNotNifty · 07/05/2023 21:44

We are due up in October so am starting to look around.

What is the best way to find a mortgage broker? Do you pay them? We've never really shopped around as what our existing provider offered was good, long term fixes on low rates. But I know that's a thing of the past and I'll need to be a bit more savvy

You don't pay a broker, they get a commission from the mortgage provider. It's really worth it, they look at everything on the market and your circumstances and tell you all your options. Ask people you know to recommend a good broker.

ThankmelaterOkay · 08/05/2023 08:20

coolnice · 07/05/2023 21:49

This ^^

So sick of people being dicks about all this

The higher rates are screwing so many of us

Show quote history

Yes, they are screwing everyone but not equally.

I was just saying you should consider other people’s situations alongside your own, so you can rationalise it.

Person A: buys in 2009 on a 2 year fix. Renews 2011 5 year fix. Renews 2016 5 Year Fix. Renews 2021 5 year fix.

All of those fixes for 17 years will be CHEAP money. Their final fix will run out in 2026. They’ve got 4 years to overpay their (one would assume by now) small mortgage. And by 2026 rates might not even be where they are now. So their whole term could average out at like sub 2%.

Now put yourself in a FTB shoes.

Alainlechat · 08/05/2023 08:51

@worktired Are you considering not fixing and going on the variable rate? Could be cheaper than paying fees to fix.