Remortgage: To fix now or wait until Friday when our bank is revising intrest rates

BradZ

Hello,



Our current mortgage deal ends at the end of January and we met with our mortgage advisor a few weeks ago and she showed us our options and we decided to stick with the bank our mortgage is currently with Nationwide.



We want to fix for 3 years as we will be looking to move to a bigger house in a few years time. They offered us 1.64% which we were happy with and went away and said we will send through the documents needed, which we have been sorting this week. Our mortgage advisor has emailed today asking if we want to get that rated locked in as on Friday Nationwide are revising interest rates and they could go up or down.


What to do? do we wait and see if it goes down? or do we lock in 1.64% incase it goes up?


We have only been home owners for just under 2 years so this is the first time doing this!


Thanks.

Retired_Mortgage_Adviser

Looks like your broker is processing a product transfer for you, staying with NW. Nothing wrong in that!

Given that your fix is due to last until the end of Jan, you *should* be able to select the 1.64% now and get a rate-change done if the rates for a 3 year fix fall further before the end of November. Just ask your broker if that is possible.

My guess is that interest rates will only go downwards in the short term, but that could well be completely wrong!

MrCH

More than likely stay the same. Surely?
We agreed on a new deal 2 months ago but since our LTV came down into the next category meaning cheaper payments a month.

We called up and cancelled the previous deal and have gone with the new one.
I’m with NatWest but I’ll keep an eye on the new rates if there is a change.

Can‘ only see rates staying the same tbh.

minimike2

You should look into swap rates and the current trends with them, as well as the current competition in the market, to give you an idea of how they will re-price.

Although of course only they currently know what they are doing with them until they release them.

fewcloudy

BradZ wrote: »

Hello,



Our current mortgage deal ends at the end of January and we met with our mortgage advisor a few weeks ago and she showed us our options and we decided to stick with the bank our mortgage is currently with Nationwide.



We want to fix for 3 years as we will be looking to move to a bigger house in a few years time. They offered us 1.64% which we were happy with and went away and said we will send through the documents needed, which we have been sorting this week. Our mortgage advisor has emailed today asking if we want to get that rated locked in as on Friday Nationwide are revising interest rates and they could go up or down.


What to do? do we wait and see if it goes down? or do we lock in 1.64% incase it goes up?


We have only been home owners for just under 2 years so this is the first time doing this!


Thanks.

Hoping that when you say looking to move again in “a few years time” you mean more than 3 years, unless your new mortgage does not have any ERC’s? You have a mortgage adviser though, so I’m sure it’s been covered.

phillw

Always lock in as early as possible (about three months usually), then keep an eye on rates and if they drop then ask to switch. Nothing is set in stone until the start date.

Mortgage_Adviser

There is usually 14 day period to change your mind. So if the deal on Friday is better then change your mind if worse, stick to the current one.