About to re-mortgage

PJD

My 5 year fix at 3.99%, is going to come to an end in about 3 months.

In retrospect, going for a 5 year fix at that time wasn't the right thing to do, - I had no idea that the base rate would be so low for so long, and now, it's looking like it's going to drop further.

I have seen 2 year fixed deals at 0.99%, - this looks quite tempting. What I see as the most logical plan now for me, is to go for something like this and overpay as much as I can comfortably afford to.

Unless I am missing something? I haven't taken much interest in mortgages for 5 years, so I'm sure things have changed.

I owe £111,000 on a property worth £280,000, - I am employed.

Anyone have a better suggestion? Longer fix? Better rate using tracked rates? I am not sure how the base rate cut will affect mortgages, - some people say they'll get lower, others have said they may get higher (!)

Any help, thoughts & advise appreciated... off to see an IFA soon

frazell

The 0.99% HSBC product is appealing but the fee is quite high and will only be available to preferred customers.

If you can afford to overpay then this should definitely be a high priority especially whilst the rates are so low.

Interest rate change (if any) will be announced tomorrow so see what falls out of that. Perhaps some better deals will come on the market if rates go down.

An IFA/Broker is a really good idea.

ACG

I think there would be better deals on a loan of that size.
Dont get suckered in by the rate, look at the overall cost.

For example, I did a Mortgage recently for someone where there was no arrangement fee, free valuation and £1000 cashback. the Mortgage was for £60k. I think the bank would have lost money on that deal. The rate was not the cheapest, but there was not a huge amount in it and because of the cashback it was a no brainer.