We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Daft remortgaging question
Liam21
Posts: 24 Forumite
It's the first time I've ever had to remortgage so please bear with me....
My 2 yr fixed rate mortgage on my flat is coming to an end - my bank has given me two offers; another 2 yr fixed rate which will cost about £25 less per month; or a 5yr fixed rate which will cost about £50 more per month.
I know mortgage rates are expected to rise so there is a certain logic in fixing for longer; but its only complicated by the fact that within the next 2 years my partner and I are likely to buy somewhere bigger together (selling the current flat). I have checked with the bank and the mortgage is 'portable' to the new property.
So as I see it my options are...
1. Go for the 2 year deal: benefits are slightly more money in my pocket each month and flexibility of shopping round for a new deal when we do buy together; downside is rates are likely to be higher by then
2. Go for the 5 year deal: benefits are keeping the current rate on a chunk of our mortgage on a new place (which i'm presuming will be cheaper than anything available then); downside is slightly more expenditure each month and tied into the same lender.
Any thoughts?:beer:
My 2 yr fixed rate mortgage on my flat is coming to an end - my bank has given me two offers; another 2 yr fixed rate which will cost about £25 less per month; or a 5yr fixed rate which will cost about £50 more per month.
I know mortgage rates are expected to rise so there is a certain logic in fixing for longer; but its only complicated by the fact that within the next 2 years my partner and I are likely to buy somewhere bigger together (selling the current flat). I have checked with the bank and the mortgage is 'portable' to the new property.
So as I see it my options are...
1. Go for the 2 year deal: benefits are slightly more money in my pocket each month and flexibility of shopping round for a new deal when we do buy together; downside is rates are likely to be higher by then
2. Go for the 5 year deal: benefits are keeping the current rate on a chunk of our mortgage on a new place (which i'm presuming will be cheaper than anything available then); downside is slightly more expenditure each month and tied into the same lender.
Any thoughts?:beer:
0
Comments
-
you need to give some numbers the £pm is useless for comparing
Key things will be things like the level of borrowing, LTVs and the rates on offer now and possibly in 2 years.
if really worried about rate rises why not move now and secure those low rates on all the money rather than just a bit of it?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.6K Work, Benefits & Business
- 602.9K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards