When to remortgage

samanthat80_2

My fixedrate is up in July. My mortgage advisor has contacted me concerning putting a new deal in place as you can hold them for six months and he says there are good ones on the market at the moment - I am only interested in a fixed rate. I am not sure whether to take a deal now or wait for a few months incase better deals come on the market - we are under 75% loan, depending on value of house at moment could be 60% - having only remortgaged once before am not sure what to do or any idea of finacial forecast over next six months.
Any advice/views welcome.

HarrowArrow

With the BOE base rate only going to get higher, Fixed Rate deals can only get worse IMO, so act sooner rather than later

Sadly my fixed deal only ends in December!:(

phlash

There is a strong argument against fixing at the moment.

The lender's SVR may be very favourable, and for a period you may be able to overpay and really shrink the mortgage.

Obviously there are a lot of caveats, but I believe BoE interest rates cannot suddenly reappear back at 5%, it will take a considerable amount of time. Indeed, Roger Bootle who is a leading economist argues BoE interest rates could remain at 1% or lower for the next 5 years. His arguments are compelling.

Raising rates to 1% isn't just a 1/2 percent increase, it is a 100% increase on the current rate. These small increases are therefore seemingly large compared to current rates which are needed to support the current economic activity.

My bet would be, SVR, overpay and keep reading economic news around interest rates.

dimbo61

You need to read the paperwork that came with the mortgage deal you are now on!
What does the mortgage revert to after the fix ends?
Does it go onto the SVR of your lender or like mine some kind of tracker deal!
You then need to find out what your lenders SVR is .
You have had two other replies with 2 different views.
1 take a new fix ( safe option )
2 go onto the SVR/tracker and pay no fees and may even save money each month which you could then use to build up an emergency fund or overpay.
We have know idea about how you manage your finances and if you have any savings, LTV , job and job safety! income, partner/kids etc
some mortgage deals might be perfect for you and others a total disaster.
You can use "whatsthecost" to work out your new mortgage payment from your own figures GOOD LUCK

dimbo61

Mortgage advisor will want you to take new deal with different lender as he/ she gets commission.
Just check out what happens to your current deal first

samanthat80_2

Thanks for all your advice. I do have three kids so all the costs that goes with that. I have looked at my present mortgage provider and it reverts back to variable. I think fixed is the best for me - and one that can transfer as we are planning to move in the near future. Two year seem to be the lowest at the moment which may be best as the economy is still so up in the air that to fix at a higher reate I feel may not be the best option. any thoughts welcome.

dimbo61

Have a look at the first direct 2/3 years fixed offset deals maybe just what you want ! GOOD LUCK

pwllbwdr

I would suggest that you first need to find out just what your lender's variable rate is. Some are much lower than others. Then you can start to think about what to do.

FWIW, I wouldn't contemplate taking out a 2 year fix at present. Lots of people reply to these types of thread saying that because the base rate is so low, "interest rates can only go one way and that is up". That is not true. They could stay where they are. You will find as many differing predictions as you like about what will happen, they can't all be correct. General consensus seems to be however that in 2 years time interest rates will be higher than they are now, possibly substantially, possibly not. I'd either go for the SVR if it is low or a longer fix. But its your choice!