How often to remortgage?

Limo

I bought my first house 2 years ago and when getting the mortgage from the broker I was told they would get In touch when my fixed rate deal was ending to remortgage.

At the time I was completely shocked (I was very naive) I had no idea we were expected to remortgage after a couple of years. Obviously, it makes sense to do this to get a better rate, I just didn't understand the whole process back then.

Anyway, I'm now looking at my remortgage and its such a pain. I'm looking at 2 year deals again and the idea that I'll have to remortgage again in 2 years is doing my head in.

Do people really keep switching every couple of years?????

I'm tempted to just get a tracker and then switch if rates increase to try and avoid going through this malarkey. But I realise that is a risk itself.

Honestly, I have never ever heard anyone in real life discussing remortgaging every couple of years which is why I'm having a hard time believing I have to keep doing this.

Am I misunderstanding anything?

pjcox2005

As with all things it depends on the person and not many people discuss their finances.

It's stated that a 1% saving on a £100k mortgage can be a saving of £60-£80 a month so quite substantial over the years. similarly as you pay off your mortgage you're more likely to have a better LTV at the end of each product, offering better percentage rates so worth doing.

If you don't like the hassle then perhaps 5 year fix (or potentially 10 years) is easier so you get certainty and don't have to worry about the position every couple of years.

StuC75

If you don't re-mortgage then you would just revert to Standard Variable Rate (so you don't actually have to do anything) - so see how that compares ..

If you are happier paying more on SVR then stay as you are..

Alternatively look to fix for longer than 2 years..

Your loan to value ratio now may also help you to get a better deal, so try to consider what kind of LTV you might have in 2,3 or 5 years and what kind of deals that would make available...

Changing to another deal with the current lender can be quite straight forward assuming your circumstances haven't changed drastically in the last 2 years...