Remortgaged 7yr 2.08%

Kendall80

I just completed my rate switch. I had wanted a 10 yr fix but it would've been minimum £30 a month more. 2.08% for 7 years seems fairly decent to me and i'm happy with £420 a month. Just wondered what decisions others are making regarding remortgaging/rate switching at the moment. I was tempted by the 2 year tracker until today when the manufacturing figures were released - perhaps signalling a potential tightening of monetary policy is required.

AnotherJoe

With Brexit negotiations and then exit over the next few years, a low exchange rate is better than higher, as is some modest inflation. I don't see rates being raised for those reasons for quite a few years, especially since a low exchange rate will help with any tariffs that are imposed on our imports into other countries.

So, I don't see rates being raised any time soon. Indeed if the pound got too strong it's more likely they would lower rates than raise them. I dont know what rate you could have got but I would almost certainly have gone for the lower one, having said that, that's a pretty low rate and you won't have to be applying for a new mortgage for seven years which depending upon your plans could be a good thing (or it could be in three years time you are back here asking how to get out of a large ERC so as to gain from the 1% rates you see on offer

End of the day it's a gamble, I would have gone the other way to you but appreciate why you took such a low rate for that long.

xyz123

Op- can I ask who did you remortgage with? Ta.

Kendall80

xyz123 wrote: »

Op- can I ask who did you remortgage with? Ta.

Sure. Barclays/Woolwich.

Kendall80

AnotherJoe wrote: »

End of the day it's a gamble, I would have gone the other way to you but appreciate why you took such a low rate for that long.

I had no strong conviction either way but I am content that in 7 years time i'll have paid off a significant proportion of my loan. I intend to overpay £130 per month too so overall interest and total term should be reduced substantially. I have run the calcs but cant remember the precise values.

amnblog

Interesting that you switched from a 2 to 7 year view based on one piece of market information that changes very month.

Still 2.08% over 7 years is hardly likely to cause you hardship.

Kendall80

amnblog wrote: »

Interesting that you switched from a 2 to 7 year view based on one piece of market information that changes every month.

The longer fix was my intention from the outset. As initially stated, I was merely 'tempted' to go for the low rate 2 year tracker. I would have preferred a 10 year fix but left it a little late to remortgage away from Barclays for the better rates. They were offering 2.79% with fee or 2.99% without fee. The 2.08% 7 yr offering appeared to be the standout option on my list so I rate switched online.

AnotherJoe

What was the rate on the 2 year ?

csgohan4

what was your LTV, that's a cracking 7 year fix

Kendall80

csgohan4 wrote: »

what was your LTV, that's a cracking 7 year fix

Its 50.6%

The threshold for the offer was rather surprisingly 65% LTV.

Glover1862

It fairly good that rate, I'm considering one from Coventry bs at 1.99% for 7 years with a £999. Fee. The 5 year flexx product is also tempting at 1.99% but no erc and £499 fee. Both very good, I've only got £130k left and I'm about 25% ltv. Cbs did have a 1.5% flexx variable for 50% ltv which was excellent but they've removed it now, they have 1.65% for 65% ltv, still very good.

Im actually with coop but they are a little higher, hopefully in the next couple of months they'll match their platform offering of 1.89% for 5 year fix and then I'll just do a retention swap which saves the hassle of re applying.