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    • David Gibbs
    • By David Gibbs 14th Sep 17, 5:44 PM
    • 3Posts
    • 0Thanks
    David Gibbs
    Interest Rate Rises
    • #1
    • 14th Sep 17, 5:44 PM
    Interest Rate Rises 14th Sep 17 at 5:44 PM
    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.
Page 1
    • glosoli
    • By glosoli 14th Sep 17, 5:59 PM
    • 633 Posts
    • 366 Thanks
    glosoli
    • #2
    • 14th Sep 17, 5:59 PM
    • #2
    • 14th Sep 17, 5:59 PM
    Might be worth it, might not be. What is your:

    House value
    Balance outstanding
    Current rate
    Early repayment charge
    • kingstreet
    • By kingstreet 14th Sep 17, 6:14 PM
    • 31,932 Posts
    • 17,064 Thanks
    kingstreet
    • #3
    • 14th Sep 17, 6:14 PM
    • #3
    • 14th Sep 17, 6:14 PM
    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.
    • SG27
    • By SG27 14th Sep 17, 7:26 PM
    • 1,903 Posts
    • 1,183 Thanks
    SG27
    • #4
    • 14th Sep 17, 7:26 PM
    • #4
    • 14th Sep 17, 7:26 PM
    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...?
    Originally posted by kingstreet
    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.
    Mortgage Debt: £93,537.48/£105,025 Feb 13
    Overpayments so far: £3,939.72
    • getmore4less
    • By getmore4less 14th Sep 17, 8:40 PM
    • 29,781 Posts
    • 17,806 Thanks
    getmore4less
    • #5
    • 14th Sep 17, 8:40 PM
    • #5
    • 14th Sep 17, 8:40 PM
    work out how much they have to go up to break even.
    • Iulia
    • By Iulia 14th Sep 17, 9:16 PM
    • 13 Posts
    • 2 Thanks
    Iulia
    • #6
    • 14th Sep 17, 9:16 PM
    • #6
    • 14th Sep 17, 9:16 PM
    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.
    • getmore4less
    • By getmore4less 14th Sep 17, 9:52 PM
    • 29,781 Posts
    • 17,806 Thanks
    getmore4less
    • #7
    • 14th Sep 17, 9:52 PM
    • #7
    • 14th Sep 17, 9:52 PM
    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.
    Originally posted by Iulia
    Does no deal with this type of ditch
    • Boredatwrork
    • By Boredatwrork 15th Sep 17, 10:04 AM
    • 154 Posts
    • 173 Thanks
    Boredatwrork
    • #8
    • 15th Sep 17, 10:04 AM
    • #8
    • 15th Sep 17, 10:04 AM
    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.
    Last edited by Boredatwrork; 15-09-2017 at 10:13 AM.
    • amnblog
    • By amnblog 15th Sep 17, 10:08 AM
    • 9,747 Posts
    • 3,763 Thanks
    amnblog
    • #9
    • 15th Sep 17, 10:08 AM
    • #9
    • 15th Sep 17, 10:08 AM
    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.
    Originally posted by SG27
    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.
    • marathonic
    • By marathonic 15th Sep 17, 10:19 AM
    • 1,760 Posts
    • 1,317 Thanks
    marathonic
    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-dc41-3ca1-8335-9cb1fe3ee21e
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