Remortgage fixed rate thoughts 🤔

sm1thy140

Hey

With 7 years left to go on my mortgage i am currently out of any fixed rate deal and pay just under £790 a month.

Have always previously remortgaged to keep on a fixed rate but this time while looking for a fixed rate be it 2, 3, 5 or 7 years monthly payments are working out about £850 so around £60 ish more a month.

Cant decide if to bite the built and go for the fixed term for safety or just ride the wave for a bit longer and watch out for intreast rise's like a hawk. 

Any thoughts. 

getmore4less

Why is the payment going up if you fix?


what are current 

lender?
amount owing ?
rate?
LTV?

Emmia

getmore4less said:

Why is the payment going up if you fix?


what are current 

lender?
amount owing ?
rate?
LTV?

Presumably the interest rates available now are higher than the rate on the previous fix / SVR?

Fixing provides certainty but you can pay for that in the form of higher interest rates - although if the SVR goes up to above the rate you fixed at, you're laughing...  it's a gamble depending on where you think rates will go, and how soon... and your financial ability to absorb fluctuations income/budget-wise.

Personally I fix as I want certainty on the payment.

getmore4less

Most fixed at decent LTV are back to levels at or below the previous lows so going up £60 would be a big jump in rate(or fees)
(7 years left assumptions is decent < 60% LTV, that might be wrong)

7 years at 0% paying £790 means their mortgage is £66,360 or less depending on the rate.

They say they are out of any deal if using that as  the rate  then on SVR or a follow on rate that may be very good(and lower than current fixes..

7 years at £790 then going to £850 would need these rate changes

£66360 0% -> 2.09%
£59790 3% -> 5.18%
£55900 5% -> 7.23% 

Given 5/7year fixes are around 1.5% highly unlikely they have a rate approaching zero unless they got very lucky with the follow on trackers that were around for a while

Going from 0% to 1.5% with a £999 fee would take the payment to £845 without the fee £833