Need to remortgage in June - what should I do?

[Cattreesea]

My 2 year fixed rate with HSBC will end in July so I need to remortgage.

I have about £68K left to pay.

The mortgage I took 2 years ago when I bought my house is a 12 year mortgage and it was arranged by a broker.

I am thinking of just switching to another mortgage with the same lender to keep things simple.

-Should I speak to a broker still?
-I am hesitating to fix for 3 or 5 years
-is it easy to just switch online and when should I do it if the fixed mortgage ends in July?

I leave on my own so don't really have anyone to discuss all these things with :).

I would see what offers are available via your lender, if there is another fixed rate do that for either 3 or 5yrs.

Thank you that's what I was thinking as well :).

With my lender I’m able to set a new deal six months before it ends, so you might be able to do it now.

For ease, your current provider will be easiest, you will be able to see their options on their website.

If they have good rates for 5 years I’d consider that, especially being on your own it gives you the stability of knowing what your payments will be for a decent amount of time.

@Changingplace

Thank you! that's really helpful.

I spoke to my usual broker (who will not charge me a fee for this) who was very helpful and explained everything really well.

They are going to look at 3 and 5 year fixed deals with no fees (as my mortgage is small it does not make sense to get a product with a fee) and I will take it from there.

My feeling is that I will stay with the same lender with one of their 5 year fixed deals.

Check first direct they usually have better rates than hsbc and you can over pay as much as you like

I would only fix for two years

I'd wait until June because BoE might slash rates again by then. It still gives you a month to remortgage.

I second this.

I fixed mine in December for 2 years.

5 years ran a higher interest rate which was the opposite of the situation back when rates were around 1.6%. This indicates they’re likely to come down within the next 5 years.

I switched last July to a 2 year thinking mortgage rates would fall. They haven’t. I wish I had just gone for 5 years.

I’m in the same situation. I did speak to a broker and they advised I’d be best off doing a product transfer. I am going for a 2 yr fix as I may want to reduce the term or overpay after that point. I’m reducing it to 9/10 years for this transfer.

Fixed rates are based on wider economic conditions and anticipated rate changes will be already priced in to whatever deals are available.

But one way to hedge your bets is to look at deals and book a product now. But closer to the time, look again and if something better is available, apply for that instead.

For the length of the deal OP, you need to consider the likelihood of you selling within the fixed rate period. If you want to move and buy another house by yourself, most products are portable. However if you decide to sell up to move abroad, rent or move in with a partner, you'll likely have to pay early repayment charges.

I should have said I only have 10 years left on the mortgage and it is a reasonably small amount (65K).

The one I am looking at has no fee attached to it either.

The broker said if the rates come down again before June we can negotiate with the bank to get that lower rate.

I'm in a similar position and can help with the last time I did this: HSBC rates are published on their website and the product swap process via their online banking was pretty straightforward when I used it a couple of years ago. No broker involved.

I'd like to know that if you get a new product approved now, and then rates come down: How simple is that process? Rates could go anywhere in the current world!

And to compare with fees / without fees you can use this calculator: https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates/

I'm with first direct and can only overpay 10%.