Interest Rate Rises
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David_Gibbs_2
Posts: 3 Newbie
With the likelihood of an interest rate rise, I imagine to 0.5%, is it worth looking to renew my mortgage now despite being in a fixed term until July 18?
Last time I renewed interest rates were 0.5%, so I am mainly wondering whether it is worth looking to pay an exit and arrangement fees. Currently 30y 9m left on mortgage but was hoping to reduce that by 5-10 years at next renewal too.
Last time I renewed interest rates were 0.5%, so I am mainly wondering whether it is worth looking to pay an exit and arrangement fees. Currently 30y 9m left on mortgage but was hoping to reduce that by 5-10 years at next renewal too.
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Comments
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Might be worth it, might not be. What is your:
House value
Balance outstanding
Current rate
Early repayment charge0 -
We are seeing no rate increases across new products. This suggests the market is not anticipating higher rates any time soon, otherwise the swap rates would be pushing new business rates higher.
You may be wise to consider a change but as glosoli has asked, without knowing your current rate and ERCs it's impossible to say.
Frankly, I'd be surprised if it makes sense jumping ship when you will be looking for a new deal in less than a year, but if the ERC is 1% or less, who knows...?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »We are seeing no rate increases across new products. This suggests the market is not anticipating higher rates any time soon, otherwise the swap rates would be pushing new business rates higher.
You may be wise to consider a change but as glosoli has asked, without knowing your current rate and ERCs it's impossible to say.
Frankly, I'd be surprised if it makes sense jumping ship when you will be looking for a new deal in less than a year, but if the ERC is 1% or less, who knows...?
Thanks Kingstreet, just heard on the news that the MPC is warning of potential rise within months so I was wondering if there was any market reaction and that has answered my unaksed question thanks.0 -
work out how much they have to go up to break even.0
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I'm in the same boat, asked myself the same question. My fix ends 31 July 2018. Might be worth looking at switching to a new fix deal come May 1st assuming your lender allows an earlier switch (3 months before fix rate expiry). Or remortgage... fingers crossed the rate growth won't be dramatic.
My ERC is 2% and I'm paying 2.34% interest rate at the moment, so I don't think it's worth renewing now. There is a "Ditch your fix" calculator on MSE, enter your numbers there.0 -
I'm in the same boat, asked myself the same question. My fix ends 31 July 2018. Might be worth looking at switching to a new fix deal come May 1st assuming your lender allows an earlier switch (3 months before fix rate expiry). Or remortgage... fingers crossed the rate growth won't be dramatic.
My ERC is 2% and I'm paying 2.34% interest rate at the moment, so I don't think it's worth renewing now. There is a "Ditch your fix" calculator on MSE, enter your numbers there.
Does no deal with this type of ditch0 -
Even if they do rise, (and I appreciate nobody has a crystal ball), Ive never heard anyone state including Mark Carney they will rise by a considerable amount, and they would look to do it gradually as not to over disrupt the market.
Some lenders (if you are changing lenders), allow you to reserve a deal up to 6 months ahead, Norwich and Peterborough did that for me, Its worth asking.0 -
Thanks Kingstreet, just heard on the news that the MPC is warning of potential rise within months so I was wondering if there was any market reaction and that has answered my unaksed question thanks.
7 out of 9 members of the MPC did not see rises as a good idea this month.
The economy is still so fragile it is glass like.
The 'talk' by the Governor yesterday might be taken as the only option as a rate rise currently is not a good one. The 'talk' strengthens the pound for a few days without actually doing anything that will hurt us later.
As for paying early redemption penalties now to get out of rates ending in the next 12 months all a bit of overkill.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
It looks like swaps/gilts and the pound are on the rise today again after comments from Gertjan Vlieghe.
I heard mention of him on Bloomberg News this morning referring to him as one of the more dovish members of the committee - this is reiterated in the article below. That's probably why his comments, more than any of the other members, is having such an impact on the markets.
Personally, I've booked an appointment to move from a 1.54% lifetime tracker to a 1.84% 5-year fix. In my circumstances, it's a very low-risk move.
https://www.ft.com/content/36ccf330-dc41-3ca1-8335-9cb1fe3ee21e0
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