Re-mortgage now or wait 12 months?

ches501

I am four years into a 5 year fixed mortgage. I am considering re-mortgaging now and paying the 1% penalty charge for early repayment in order to benefit from the current low interest rates - I am currently paying an interest rate of 4.8% with a LTV of around 60%. I will probably look to take out another 5 year fixed deal. Given some of the current rates, I would expect that any savings on a re-mortgage would outweigh the penalty payment within Year 1.

Has anyone any thoughts on whether this is a good option? Are interest rates predicted to rise or remain low for a further 12 months?

Thanks

Dave_Ham

What is the loan size?

Remember some lenders will give you a formal mortgage offer which lasts for 6 months, therefore your question would be what is likely to happen to interest rates in the next 6 months...

You may take a different view..

ches501

It was £155k initially - probably down to ca £144k now.

amnblog

There is usually some cost involved in remortgaging so this has to be borne in mind.

You could fix for 5 years at around 2.85%.

Since your last 5 year rate was unsuitable for the full five years you might be better off going for a shorter term and fixing for 3 years at 2.34%