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Original poster

If you're remortgaging now or soon...

61 replies

pinksunsets · 14/10/2022 20:34

How long are you fixing for given rates are now around 6%? 2 years hoping they might go down after? Or 5 years because things might get worse and potential falling house prices might affect the remortgage deal you get??

OP posts:
coodawoodashooda · 14/10/2022 20:36

I think I'd do 2 years and try my best to overpay and save to damage control the situation further down the line.

FlashFash · 14/10/2022 20:37

Watching only to see what others have done

My deals have just ended but I fixed a few months back 5 years fixed (but I got below 3%)

findingsomeone · 14/10/2022 20:48

coodawoodashooda · 14/10/2022 20:36

I think I'd do 2 years and try my best to overpay and save to damage control the situation further down the line.

I would do this. For the first time I see the benefit of two year fixes right now.

Original poster
pinksunsets · 14/10/2022 20:50

Lucky you @FlashFash!

Also, I'm going to ask a potentially v stupid question - so if you're paying more because the rate is higher, you're going to be paying off more of your mortgage right? So, you'll still be getting most of that money back when you eventually (hopefully) sell for more than you paid later down the line?

OP posts:
dudsville · 14/10/2022 20:50

In 2008 i bought and fixed a mortgage at 5% for 5 years. I was kicking myself when the rates dropped, but I'll always choose certainty.

titchy · 14/10/2022 20:52

pinksunsets · 14/10/2022 20:50

Lucky you @FlashFash!

Also, I'm going to ask a potentially v stupid question - so if you're paying more because the rate is higher, you're going to be paying off more of your mortgage right? So, you'll still be getting most of that money back when you eventually (hopefully) sell for more than you paid later down the line?

No! You're paying the same amount off the capital owing, but more on interest.

FruitPastilleNut · 14/10/2022 20:55

so if you're paying more because the rate is higher, you're going to be paying off more of your mortgage right?

No - you're just paying more in interest if you have a higher rate. You're not clearing the capital any quicker.

confusedlots · 14/10/2022 20:56

I started a thread exactly the same a few days ago! I think we're going with 2 years, just because 5 years seems an awfully long time to be fixed into a 6% rate if rates are to fall. I know we could well be kicking ourselves if rates are higher in 2 years, but really no one knows what's going to happen.

jellybe · 14/10/2022 21:01

We have fixed for two, luckily we locked it in in august which at that point was making us twitchy about how much it was going up by but very thankful we didn't decide to wait and see what would happen.

Original poster
pinksunsets · 14/10/2022 21:04

FruitPastilleNut · 14/10/2022 20:55

so if you're paying more because the rate is higher, you're going to be paying off more of your mortgage right?

No - you're just paying more in interest if you have a higher rate. You're not clearing the capital any quicker.

DAMN. This is not what I wanted to hear.

OP posts:
Original poster
pinksunsets · 14/10/2022 21:05

But thanks for clearing it up for me!

OP posts:
Original poster
pinksunsets · 14/10/2022 21:06

dudsville · 14/10/2022 20:50

In 2008 i bought and fixed a mortgage at 5% for 5 years. I was kicking myself when the rates dropped, but I'll always choose certainty.

How long did it take for rates to drop then?

OP posts:
coodawoodashooda · 14/10/2022 21:50

That's irrelevant. Pay off because of the hear and now. Otherwise it's too depressing.

kirinm · 14/10/2022 21:52

We've gone with 2.

Margo34 · 15/10/2022 14:22

Depends on your attitude to risk in part, surely?

Lozzybear · 15/10/2022 15:10

@pinksunsets in 2008 rates dropped dramatically a few months after we fixed. Luckily we’d only fixed for two years! Our mortgage is due to expire 1 May 2023 and we are considering a tracker mortgage rather than fixed. We can currently get 0.75 above BOE base.

Reallybadidea · 15/10/2022 15:14

Considering how much higher fixed rates are than the BoE base rates, personally I'd be looking at a tracker right now and either overpaying as much as possible, or putting it into savings - whichever has the highest interest rates.

Original poster
pinksunsets · 15/10/2022 16:36

@Lozzybear and @Reallybadidea I'm also looking into trackers. So hard to know what to do! Think I'm also veering to 2 years whatever I do...

OP posts:
oiltrader · 15/10/2022 17:44

pinksunsets · 15/10/2022 16:36

@Lozzybear and @Reallybadidea I'm also looking into trackers. So hard to know what to do! Think I'm also veering to 2 years whatever I do...

I don't expect trackers to be a thing going forward
if gilts are higher than the BOE rate, why would a bank offer a tracker, when it could make more Money investing in lower risk gilts?

WimbyAce · 15/10/2022 18:55

We have fixed for 2 years, applied back in August but has only just gone through.

MrFirstTimeBuyer · 16/10/2022 09:19

Actually, with the same tenor and lent amount, if you have a higher interest rate then you pay down less in capital per month early on but more towards the end.

MsTSwift · 16/10/2022 09:23

Fixed for 10 years in 2018. Don’t understand why more people didn’t go for super long fixes when the rates were so weirdly low..people thought we were cranks fixing for 10 years

titchy · 16/10/2022 11:02

MsTSwift · 16/10/2022 09:23

Fixed for 10 years in 2018. Don’t understand why more people didn’t go for super long fixes when the rates were so weirdly low..people thought we were cranks fixing for 10 years

Because no one wants to pay the redemption fee if things in their lives don't quite pan out the way they'd like over ten years.

mrsnjw · 16/10/2022 11:08

A friend has just seen an advisor who said anything above 5% take two years and try and overpay. Her mortgage is going up by £400 so he has advised if payments are too much make the term longer for the two years and see what happens in 2024. All a gamble 🤔

FreddyHG · 16/10/2022 11:13

oiltrader · 15/10/2022 17:44

I don't expect trackers to be a thing going forward
if gilts are higher than the BOE rate, why would a bank offer a tracker, when it could make more Money investing in lower risk gilts?

Show quote history

Indeed I extend trackers to have a higher offset to the Boe rate going forward to mitigate this.