MSE News: Due to remortgage? Act now as rates...

Former_MSE_Callum

If you're considering getting a fixed mortgage deal you need to act quickly as rates are expected to rise in the coming months, mortgage experts are warning...

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'Due to remortgage? Act now as rates are predicted to rise'

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michaels

Can not refix till June due to lock in and erp - I suspect remortgaging then rather than at the rates available now may cost me up to 7.5k over the next 5 years.

If you can remortgage now and fix for 5 or 10 years it is a no brainer.

ACG

No harm looking now. Some lenders will issue remortgage offers for 6 months. So you can apply and just leave it until June comes.

I emailed a few people earlier this week, only 2 have replied. I think they think I am doing it as a sales stunt. No doubt I will get a few more people in April but I reckon if not done by the end of next week, most people will have missed out.

michaels

ACG wrote: »

No harm looking now. Some lenders will issue remortgage offers for 6 months. So you can apply and just leave it until June comes.

I emailed a few people earlier this week, only 2 have replied. I think they think I am doing it as a sales stunt. No doubt I will get a few more people in April but I reckon if not done by the end of next week, most people will have missed out.

Current fix ends 4th October

Spoke to a broker this week, he (having spoken to underwriters) felt that I would have to get a couple of wage slips showing more realistic income/pension split before they would be happy which I guess could be Feb and March but I really don't want to have any more taxable income this tax year as that will also be very (73% effective marginal rate) expensive.

In the end if borrowing rates are too high compared to savings rates I could just pay the mortgage off.

DragonQ

Already in the process of fixing at 1.84% for 5 years. Current mortgage runs out in about 3 months. The base rate rise came a month before the earliest date I could apply for a new fixed rate with most lenders. >_>

pinklady21

Who is that mortgage with DragonQ? What is the ERC?

My current fix comes to an end in May and has a £1500 ERC, the house is on the market, but looking unlikely it will sell before then, which will save me paying the ERC. On the other hand, I will either have to fix again with current lender or go onto SVR until we sell, which will increase the monthly payments.

My dilemma is whether to fix or not now either with existing or another lender in the knowledge that rates are rising, we are moving, but with no clear idea of where we are moving to.
While the mortgage may be portable, the property we eventually purchase is likely to have quite a bit of land with it, which may not meet the lender's criteria. Tricky....

DragonQ

pinklady21 wrote: »

Who is that mortgage with DragonQ? What is the ERC?

My current fix comes to an end in May and has a £1500 ERC, the house is on the market, but looking unlikely it will sell before then, which will save me paying the ERC. On the other hand, I will either have to fix again with current lender or go onto SVR until we sell, which will increase the monthly payments.

My dilemma is whether to fix or not now either with existing or another lender in the knowledge that rates are rising, we are moving, but with no clear idea of where we are moving to.
While the mortgage may be portable, the property we eventually purchase is likely to have quite a bit of land with it, which may not meet the lender's criteria. Tricky....

My current mortgage is with Nationwide and the ERC is 1% so a few grand. To be honest it may have been better to fix before the rate rise and pay that, but I wasn't really expecting the rate rise so wasn't monitoring the situation. The other problem would've been the need to overpay more to reach the LTV. Even now we'll need to overpay somewhere around £5k to secure that rate.

Having your house on the market during remortgaging certainly complicates things!