New mortgage term.

[Twinkletoesmagee]

We are just coming to the end of a 5 year fixed term deal which was on a very low rate. I have like the security of it being fixed for 5 years and the higher interest rate charges didn't affect us. Interest rates seem to be a more normal level at the moment (more than our last one but less than previous rates we've had).

I am thinking we should fix again for for the next 5 years which works out as £200 per year more expensive as the rate is slightly higher.

What would you do at the moment?

I would lean towards 5 years now too. I really don't think there is going to be much change and the security of knowing what you are paying for a longer time is worth it.

I would tie in for 5 years because otherwise every time you sign up for a new term you pay £1000 minimum

Funnily enough I used to only take two year terms and I realised that after I was adding the 1k to my mortgage each time and paying interest on it over the life time I had been a fool

I signed up for a 10 year fix just before Truss became PM

phew 😮‍💨

That was good timing!

There is a 7 year deal too but I think that works out a lot more expensive over time even though there is no fee. Our circumstances will change significantly in 5 years (3/4 of the dc through uni and no school fees to pay) which means that we can reduce our term when we come to remortgage.

If you check the mortgage best buy portal on the MSE site, it will give you a comparison based on annual cost which takes the rate and the fee into consideration. Check 'MSE Total Cost' when filtering the results. Depending on how much you're borrowing, the fee can obviously influence your decision a little or a lot.

Yeah I think it makes perfect sense for you to stick with the 5 then you need not worry about it again

Be quick though because Rachel Reeves is causing a lot of uncertainty and some are saying she could cause another Truss scenario (although we know that was temporary) but a lot of people still got caught in the crossfire in the months following until things settled down again.

We’re in a similar position (although our mortgage payment will be at least £240 or so more per month).

On the rates that are available to us there’s a variety of fees ranging from 0 to £999

Not all do, my hsbc mortgage I just renewed is called fee saver and £0 fee

@Destiny123 true but the majority come with fees

or you just remortgage on a fee free product. I've never paid to remortgage