New market leading 5yr fix?

InMyDreams

Daniel_gecko wrote: »

Is the bank's base rate anything to worry about?
(accord's being 6% nationwide's being 4%)

Because at the end of the fix I can just remortgage asap, right? Even if i want to move house soon after, I just remortgage and make sure it's portable or no erc?

In theory.

In practice you can only do this if you pass all the checks when you apply for the remortgage which is just like applying for the mortgage the first time around. No guarantees. So the closer you are to the edge now, the riskier that idea gets. That's why lots of people are stuck and not able to move. They took out mortgages when times were good, had assumed they'd be able to remortgage to better deals and then banks tightened up, house prices fell (even if you aren't in negative equity, it's bad news for your LTV when negotiating a new deal) and people's incomes dropped (or disappeared all together) in the current climate.

So yes, if you are fit and healthy, have concrete job security, rock solid relationship (if you are buying with a SO) loads of equity already, then follow on rates might not concern you so much.

Daniel_gecko

I see.
Yes, thank you. My LTV will be between 70% and 75% (house 170k, mortgage 127.5k). I hope to have around 70k left on the mortgage after 5 years.