What would you do

Isladee

Hi all,
I'm aware of the current rumours that Interest rates may well be on the up soon. I'm Indecisive at the best of times so can't quite make my mind up on this one.
Simple question what would you do ?

Current mortgage
£73000 12 years left

Stick with current mortgage
Mortgage is currently on various rates due to taking loans at various times
(65% of the mortgage is 0.79 above Base Rate the rest on the variable rate)
Monthly repayments are currently £580

Fix for 5 years
First Direct 1.84% 5 years then 3.69 remainder or

Fix for 10 years
First Direct 2.49% 10 years then 3.69 remainder

Debtslayer

What would be the monthly repayments on both options?
Would you be able to make any overpayments?

Isladee

No I don't think we'd be making any overpayments

Fix for 5 years - £565.00 per month

Fix for 10 years - £587.00 per month

YHM

Can get the 5 year cheaper through a broker

Isladee

Thanks for the reply YHM,
would the broker not charge and better rates come with fees?
The rates above were without any fees

YHM

Depends on the broker.

*edited by Forum Team*

OSCO

We've gone for the 10 year fixed.

The_Leopard

Mortgage rates are already on the up even if interest rates haven't risen yet. We missed out on a 5 year fix with Monmouthshire Bank at 1.55% less than 10 days ago, then again at 1.70% this last week due to the time it took to arrange telephone appointments with their advisors (they had a big backlog). Now going with a 1.74% 5 year fix and £999 fee with Metro Bank... if they still have the rate by the time our call with the advisor happens this Thursday!!

I like the certainty of a fix especially with the potential for economic uncertainty pre/post Brexit. It's because of this uncertainty that I've gone 5 years... I don't want to be coming out of deal in 2/3 years and we don't have the interest rates available that are today. My feeling is that it's unlikely it will be this good again for a while and things will now gradually creep up very slowly over the next few years but appreciate this is very much crystal-balling.

Isladee, it comes down to your thoughts on risk and that's personal to you. Just be conscious that any rate change will see both parts of your current mortgage increase. However, you also have the flexibility to move quickly in your current position so if your happy with staying as you are just keep a close eye on the mortgage market.