Product transfer with Santander..advice please?

Maduck22

We are coming to the end of our fixed rate 2.79 with Santander, and looking to change to either another 2 or 3 year fixed.

The options we have are as follows:

1) 1.99% two year fixed, £529 pm
2) 2.29% three year fixed, £553 pm

Either way, we will continue to pay the current amount of £598.

Are we better off sticking with a two year and paying off more capital? Although, when it comes to the end of the fixed rate we will also leaving the EU - is this likely to have any impact on interest rates?

Or

Go with the 3 year, so any consequences of Brexit have settled but pay off less capital?

Or

Hold off for a couple of weeks just in case the BoE lower the base rate again?

Any advice would be greatly appreciated,

Many thanks

MD

AnotherJoe

hmmmm

Snakey

Look at it differently: you will be getting a better rate than you're on at the moment!

Brexit is a longer-term thing. The fallout could take years to develop, come to a head, and recede again. Dithering between October 2018 (six months before) and October 2019 (six months after) is missing the point on that one. In any event, there will always be something - perhaps you should fix for four years because there's a General Election in May 2020 and if Labour get in it could impact interest rates?

If you are worried that when the fix period comes to an end interest rates might be 18% and you won't be able to manage, then fix for a longer term (ten years or whatever) - that's who those deals are designed for. Of course there are downsides with the longer fixes too, so do your homework.

My personal view is that it's unlikely that you'll get a significantly better deal. Interest rates can't fall much further and I don't think it translates into a like-for-like reduction in mortgage rates in any case. There won't be a magical time when the bank pays you to borrow from them!

I am guilty over over-thinking these things massively myself. But really, it's a storm in a teacup. Look around and get the best deal that's available to you today, then forget about it and get on with paying it off.

I fixed for five years and I'm now halfway through it - paying 2.99%. I could beat myself up for not having fixed for less time so that I could get a better deal today, but meh. Things could equally have gone the other way, or I could have lost my job and be unable to remortgage, or anything else for that matter. What I focus on is that a) I can afford these payments, b) I don't have to worry what happens to interest rates for the next 2.5 years, and c) every month is a month closer to having it paid off.

Hope this helps!