Mortgage renewa - wait until post Brexit?

Dannii75

Hi folks,
I've got a feeling this might be a 'crystal ball' answer.
Current mortgage on 1.39% 2yr fixed (£465 pcm) coming to an end in July which means I can change my deal any time from today.
Just checked the rates for fixed deals & they're slightly higher, obviously. I like fixed rates, it means I can budget without worry. New deals are:
a)2 Year 1.69% n/a £480.28 £999.00
b)2 Year 1.89% n/a £490.03 £0.00
c) 3 Year 1.99% n/a £494.96 £0.00
I'd probably go for b).
The big question is, I could wait until April to change my deal post-Brexit. Out of interest, what would you do, & why?
Thanks
Dannii

amnblog

What makes you confident April will be PB?

Dannii75

Let's not get into that, that's what I'm here for. But, there's a possibility it won't. My question still stands.

csgohan4

Crystal ball time.....

Thrugelmir

What's the impact of the fees on option a).

With rates so low already. The upside of any future event is unlikely to be be that beneficial. Peronally I would lock into longer term fixed rates. Two year rates are low for good reason. There's cheap funding sloshing about. The future may be very different.

theoretica

You say you like the certainty of fixed rates. Sounds like you might like to avoid crystal balls too.

mwarby

Thrugelmir wrote: »

What's the impact of the fees on option a).

With rates so low already. The upside of any future event is unlikely to be be that beneficial. Peronally I would lock into longer term fixed rates. Two year rates are low for good reason. There's cheap funding sloshing about. The future may be very different.

Ok but b is £240 extra in monthly repayments over the 2 years, with £0 fee, a is £999 fee. Option b would be £759 cheaper over the 2 years

edit - sorry Thrugelmir I thought you were suggesting option a, as the one youd opt for

Harvic

As Thrugelmir says above, interest rates are so low at the moment it's hard to see them dropping. The only thing that is certain is uncertainty, some think BOE rates will go up and others down based on Brexit and how 'bad' an exit we get. We locked into a fix (5 years with another 3.5 years remaining) as we could get a historically low rate that will hopefully cover the whole period and at least we know our finicial liabilities for the period.

Dannii75

Thrugelmir wrote: »

What's the impact of the fees on option a).

With rates so low already. The upside of any future event is unlikely to be be that beneficial. Peronally I would lock into longer term fixed rates. Two year rates are low for good reason. There's cheap funding sloshing about. The future may be very different.

thanks for the sensible answer! :T I agree, it's about affordability for me so nevermind what 'might' happen, or not!

Dannii75

Harvic wrote: »

As Thrugelmir says above, interest rates are so low at the moment it's hard to see them dropping. The only thing that is certain is uncertainty, some think BOE rates will go up and others down based on Brexit and how 'bad' an exit we get. We locked into a fix (5 years with another 3.5 years remaining) as we could get a historically low rate that will hopefully cover the whole period and at least we know our finicial liabilities for the period.

Very true! I think a 3yr term, minimum, would be sensible... time for things to settle down whatever the weather!
Thanks for your sensible reply!

patch9495

Hi Danni,


Depends on how long you are looking at keeping this house.


Most people are recommending locking in at a low rate for as long as possible, due to rates being at their lowest in decades.


This being said ERC come into effect with longer deals, so if its a short term solution lock in for a shorter term, long term solution longer term.
Also take into account stamp duty/legal fees/arrangement fees if you were to move short term.


To offer a bit of perspective we have locked in for 5 years on our FTB as rates are low and we are currently easily accessible to our work (both current and future). Only reason we didn't go for 10 years is due to the high ERC charges if something major were to occur eg offered a job in a different part of the country