5 year fixed….aaaaah!

[BlueMumma2018]

We are in the process of selling/ buying and the only rate we can secure is a 5 year fixed at 6.36 percent. This is going to increase our overall payment by £680 per month. Is anyone in the same position and feeling a bit scared?

my mortgage broker said that if the rates fall dramatically we could possibly switch to a lower rate with the same lender. It’s all just a but overwhelming!

Yes, me. My fixed period ends in February and I'm looking at an increase to monthly payments much the same as yours. It's very scary. I'm really hoping I get some sort of cost of living salary increase next year as I really don't have an extra £700 laying around 🤮 Luckily (?) I also get 30 free hours for one of my children that starts at the same time, so while it doesn't cover it all, it helps slightly. It's just a big mess.

Any chance to get a tracker? Also can you extend the term at all to bring monthly payment down?
this will be me next May…gulp

We're doing a tracker for two years as we think it's nearing the peak

@Raindancer101 i know, I feel like we all need an increase now. Without that bit of money Christmas and birthdays will not exist 😢

@itsallnewnow @Twoshoesnewshoes our mortgage broker hasn’t offered us a tracker or mentioned it at all.. I’m not sure we would get one? It hasn’t occurred to me really!

My understanding is that you're more likely to be offered a tracker than a fix? But don't think there's much in it though, the approval usually relates to the amount etc,

We're on base rate + 0.25%

Our 2yr fixed is ending January 2024 so our mortgage advisor is currently looking for a new deal as we're looking at 6.69% otherwise.
We've been advised to go for another 2yr rather than 5yr as they believe the rates are going to come back down in around 6-12 months

2 year tracker is my plan at the moment too and I'm just hoping that they drop interest rates a little between 2024 and 2025 so the gamble pays off 😬

I'd definitely change your broker, doesn't seem particularly competent. Although BOE is currently forecasting rates not to fall until 2025, IMO this probably only means a 50 bps move downwards from peak (so 5 - 5.25% by end of 2025).

You have to remember that the last 15 years with close to 0% base rate is an anomaly, and the long term average is closer to 5%.

IMO, the era of easy money is over, and although rates will fall, it certainly won't be as dramatic as some are expecting.

I’d look at a tracker, and extending the term as long as you can. We just bought with a 33 year term, the longest we could get with our ages

That's pretty high for a five year fixed. Do you have a high ltv? I'd try calling another broker if I were you. A big company like London and country, they might find you better deals than that.
We had to remortgage last week and the five year deals were more like 5.6%

Does sound high. Is there a particular reason that you’re using a broker? High street lenders don’t give lower rates through brokers so it’s best to go direct if you can.
use compare the market etc to find the best rates, or Martin Lewis.

I doubt it is going down in the next 12 months, we just got our mortgage three months ago and been advised to go for 5 rather than 2 which we did.