Interest rates and remortgaging

[Acidburn]

Hi everyone
3 years ago we bought our first home. We put down 20% deposit, and our current deal is 5 year fixed, 2.01%. So in theory we still have almost 2 years before we need to think about remortgaging, but I am freaking out regarding the interest rates rising... what do we think will likely happen in 2 years time? I am not planning to release any equity, but I would really like to know what kind of deal I will be able remortgage to...
Does anyone have any knowledge or experience regarding remortgaging?

Thanks in advance

No one has a crystal ball. Be glad you have 2 years left on your fixed rate and I would overpay as much as you can before the term ends. If you can put enough equity in the next two years you will have a bigger choice of mortgages and could consider " interest only " for a bit if the interest rates go crazy? You can still overpay but the basic rate payments are lower.

How big is the mortgage? Have you checked how much it would change by if say at 5 per cent interest?

What are the penalties on your current fix? Some decrease the further you are through it.

Depending on the amount it might be worth it to you to pay the penalty (add to mortgage if necessary) and fix for another five years - assuming you have no intention of moving?

It really depends if you are looking at a grand or 10k as to how worth it this might be. And of course what products are available now at your LTV.

Sit down and work it all out

Don't try and move now as suggested above. You will have to pay a penalty and will end up on a worse deal. Just enjoy the fix while you have it and hope that things are better in 2 years.

But it surely depends on the product OP already has (and the size of the loan). If the get out is the same cost as when they took out the mortgage, unlikely. But if it decreases with the term it could be worth it.

My advice is to work out the figures in order to calculate the level of risk

I had a year left on my fixed deal at 1.8%. I was really worried about riding interest rates too. I’ve paid the early redemption charge and I’m now on a fixed 10 year at 2.4%. It means I’m paying a bit more now but interest rates are rising quite quickly and in the long term think I’ll save or at least not be any worse off a month.