Renewing Two Year Fixed Mortgage in Two Years Time

powerwin

If I get a new two year fixed rate mortgage now, what do you think my chances are of being able to find a good deal (relative to prevailing interest rates) in two year's time?

Do first time buyers typically find it hard to find a reasonably good new mortgage deal after two years?

What charges do I need to be aware of at the end of the initial two year fix?

Thanks

opinions4u

Who knows?

What's the value? How much is owing?

What will the property market look like? What will the mortgage market look like?

A £90k loan on a £100k property could turn in to an £87k mortgage on a £90k property - in which case you won't be remortgaging and will be at the mercy of your existing lender's product range or SVR.

Fees if you do remortgage:

Broker fee if needed
Valuation fee for new lender.
Legal fees.
Product fee.
Discharge fee from old lender.
Possible mortgage indemnity fee (high value loan charge, additional mortgage security and various other names for it).

GMS

Impossible to day what will happen in 2 years. Any deal you could secure would be dependant on property value, your account conduct, credit rating, income and product availability.

Being a FTB now has no impact on remortgaging in the future.

Fee wise you would need to take into account any admin fees on current mortgage deal when repaying with arrangement and valuation fees possible on the new mortgage.

In 2 years time you are likely to have repaid little from your mortgage if no overpayments have been made.

powerwin

Thanks for the responses guys.

I can afford a 2 year fix at the moment, a 5 year fix is more of a stretch. It's the potential for a sudden and rapid rise in interest rates in approx two years time that is my main concern.

Rgds

GMS

If you cant afford a 5 year fox then you are playing a dangerous game by affording a 2 year fix unless you are expecting a significant change in circumstances during the initial period.

What will your mortgage revert to?

Rates are historically low and 5 year fixed rates will almost certainly look cheap as chips before they expire.

Predicitions on base rate rises are literally a wet finger in the air. The rate setting committee are/were at oods so what chance do we have of predicting.

bridget180282

Sorry to butt in on this thread, I am a FTB too wanting a 90% mortgage and have been looking at natwest's FTB rates on a 2 year fixed, I know we cannot predict the future but, do you think it would probably be better to fix for 5 years for the sake of extra £50 per month on my mortgage payment?

charleyroo

bridget180282 wrote: »

do you think it would probably be better to fix for 5 years for the sake of extra £50 per month on my mortgage payment?

Depends what sort of person you are, what you feel will happen to interest rates. Whether you can afford £50 extra a month. It's personal choice.

If I could have had a 5 year fix on my mortgage, I would have taken it, because I hate risk! Now I've got my fingers crossed for another 18 months hoping that interest rates don't go sky high! Luckily would be able to afford double mortgage payments and a little beyond, but would hate for that to happen!

dimbo61

Consider how long you plan on staying in your property ?
long term plans ?? will you need to move due to career changes ? KIDS ? local schools, transport links,
Look at the LTV when you take out the mortgage and what it might be like in 2 years time or 5 year time! use "whatsthecost" to do the sums
Are you looking at a tiny first time buyers studio flat or a family home ?
Can you extend or alter the property to suit your family needs ?
So many questions for you to consider