Mortgage Switch

[patate10]

We have two payments left at a very low interest rate from a 5 year fix. Deal we can get now is 2yr fix at 3.67%. That will be fine but is a few hundred pound more a month.

At the beginning of the year I was planning to wait until April rate discussion assuming base rate might be down to 3.25%. Obviously that won't happen.

I can't decide now whether we should secure the 3.67% and pay two months of extra costs or wait, keep the last two low payments and switch after them.

If BOE stays at 3.75% mid March then the 3.67% shouldn't change?!

If you think the BOE rate will stay at 3.75 then a 3.67 rate for 2 years is pretty similar to be honest. Hardly anything in it.

Can you secure the 3.67 to start at end of your 5 year term (so you still get the rate til then). But if rate does go down you can switch onto that lender lower rate. But if rates go up you are safe?
Some rates have gone up already but others (like Santander) are going up this week apparently (so I’m sorting my new rates tomorrow!)

Our cheap fix ends on 01 May. Initially we were hanging on for another rate cut but bottled it and fixed for 2 years last Friday! We've got 14 day period in which to cancel (incase a miracle happens and rates drop the end of March!), but the rate starts 01 June.

I have done it and it will start at end of cheap mortgage (we had 10 years of low interest, I am grateful, but this is a shock). I can't risk any higher than 3.67% so have done it!

Same as us, even though we knew it was coming, seeing the figures are gutting!

We are just coming off a 5 year low rate fix too and the numbers are gutting, but I do feel grateful we've been protected for this long. We are very fortunate to be able to pay a decent whack down to keep the monthly payments roughly the same as they are now, but I'm struggling to work out how sensible that is when that same money could be earning more in interest elsewhere, and there are various other moving parts to consider too. And I know it's not, but it feels like it would be just losing a chunk of money. I don't know the right answers op, but I'm glad you've worked out the best thing for you. Good luck everyone!

Yes, it's annoying how much there is to consider with money decisions! Agreed, good luck everyone!

We are due to remortgage, and we were hoping for below 4% (we only bought 2 years ago) and the sodding Middle East conflict is putting all the rates back up. So depressing!!!!!!

https://www.bbc.co.uk/news/articles/c24dm9vgrz7o