If you're remortgaging now or soon...

[pinksunsets]

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??

We fixed for 3 years last week. 3.68% with a switch. A few days later our bank had removed all 2 and 3 yr fixes and only 5 yr fixes starting at 5.2% and tracker.

We didn't want to fix for 5 years as we were one of those people that fixed for a long time only for rates to drop dramatically.

In 3 years time we are also looking to complete an extension so we want the flexibility of being able to remortgage without penalties.

Some banks still offer around 3%. We just fixed yesterday for 5yrs with Barclays at 3.25% (as did Giles Coran, according to last week's column. The only thing we have in common ). I heard many of the low rates don't go to brokers, so our long term broker told us this time to contact banks directly for a good rate. We just scraped a LV of 60%.

I'm surprised at people going for short term fixes. The very low rates we've been used to since the credit crunch are not at all typical from a historical perspective. All the predictions are that rates will keep going up in 2023.

its because we don’t have any growth on the horizon. The interest rates are falsely inflated by war, supply issues, our stupid government and stupid BoE boss. All of which should change in the next couple of years, apart from growth which will remain sluggish unless we reverse Brexit. So the chances are that interest rates should start to fall in the coming years.

Cheapest fix Barclays are now offering to remortgage is 5.76% over 10 years. Shorter terms now over 6%, so I suspect Giles Coren and previous posters actually applied for their 3% deals some weeks/months ago.

@Notyetthere did you apply for your deal a while ago? I'm also with Barclays and can't see anything lower than 6% on there now.

I'm with Platform(coop). I applied for the 3 year fix the week before last. When I checked on Thursday only 5 year fixes were left. 2 and 3 years were gone. I assume it was shortly after I applied that these were pulled.

I think it depends , we are going on a tracker we wanted to move at some point in next 2 years. Fixed are higher than trackers we have a low mortgage 100k and household income of 150k we may pay off large chunks just depends. In the new house I would fix probably for 2 years as the risk is higher and we need a more fixed budget.

We did same but was worth it for us at the time for the certainty, so although with hindsight we could have saved a LOT of money it was still the right thing. We entered another long term fix about 8 months ago so are seeing the other side now

We must have got so lucky. We applied literally 1 week ago. We were with them already, so it was an advance, so not sure if that made a difference. Their website says they have preferential rates for existing customers that you can see if you log into your Internet banking account.

I've just fixed mine for 5 years because that's what my dad said to do and I'm hoping I might be able to do some over-paying and have nearly cleared it by then. Annoyingly the rates went up by 1.5% between me first starting the application process and getting it approved but it's still no more than I've been used to paying each month due to the way I transfer money between accounts.

Fixed for 10years with barclays (remortgage and were with them already). Mortgage approved this morning at 3.05% on 75%ltv

Our fixed rate ends at the end of this month, we managed to secure a 5 year fix in August. It's still double the interest rate it was, but not as bad as things are looking now. In 5 years' time, I'm hoping we will have ridden through the worst of the economic turmoil, plus on a personal level, our circumstances will have changed by then (hopefully more disposable income!). We'll be trying to pay lump sums off each year (we're interest only, but try to pay some down within the 10% annual allowance that our product allows).

I would do 2 years. There is talk of this being a short sharp shock, and the rates will go down in 2024 to 2.5-3%. But everything is a gamble at the moment.

2008 was a totally different economic situation, back then they were dropping rates to save the debt bubble, property got bailed out as a side effect, today they are increasing rates to fight inflation (inflation affects everyone and can bring down governments) the US FED don`t care if house prices crash, they can just say basic shelter is cheaper for ordinary people = Good Thing We Did.

Like Notyetthere, we secured a 3 year fixed rate at 3.69 the week before last. Definitely got the deal in the nick of time, as haven't seen any 3 year fixes since.

I've just fixed at 3.3% for 7 years as an existing Barclays customer. The super low rates of the last few years were artificially created and never going to last, and 3%, historically is still pretty cheap borrowing. I'm happy knowing I have some stability.

I don't think rates will go as low as they were for quite some time.

It also depends on other life factors .

Eg we fixed for 10 years in ,2018 because it meant we would have fixed housing costs until the children were grown up.

In another situation I might have made a different call. With 4 children having fixed costs for their home till they were adults felt like a real priority

Disagree 100%. The era of low rates is over. it has been proved to be a failed experiment

Same Sakura we fixed for 10 years in 2018 as kids about to go to secondary and in our “forever” home so short of disaster no plans to move. We vacillated between 5 or 10 year fix Dh wanted 10 and he won he’s feeling quite pleased with himself now!

There are some 3 year deals about. In 3 years I think rates will be lower.

Agree 100%.

Recently fixed for 5 years at around 4%, now paying about £200 more a month than before - the cost of remortgaging was also a reason to fix for longer.
If we had to remortgage now at 6% or similar we'd probably choose 2 year fixed with the hope that things will at some point settle somewhere in the middle between old rates at 2% ish and new rates of 6%.
I'm so incensed at the chaos this government has created and the impact of their fannying around with the economy. Most of it quite unavoidable and entirely unforgivable

We had a mortgage consult today because we were considering ending before our deal is up but I now think we are going to wait for our deal to end and switch in February. We will probably do 5 years fixed as I don’t think this situation is going to resolved in the next yea for 2 and I like the stability of knowing what we will be paying out. If rates drop dramatically then we will pay the early exit fee and switch deal to a cheaper rate before the 5 yes is up

You do realise that your mortgage rate would be going up anyway, regardless of what the UK government do? It is two separate issues, the U.S want to beat inflation with higher rates, they are the reserve currency and affect everyones borrowing rate (the UK cant be too out of step or they lose the confidence of the market) The inept UK government pulled an un-costed borrow borrow until some time in a way off tomorrow budget out of someone`s rear hooter and the bond market said NO, that would have caused a run on the currency and emergency rate hikes, but even if they get a time machine and the mini-fudge-it never happened your mortgage is still going to get much more expensive!