Anticipating mortgage rate increase

Moneygrabber89

Our mortgage 2 year fix is not due to end until November. Therefore the earliest I can look to switch is September. The early repayment to leave early is 1% of the remaining mortgage which would be £1,300.

 

I am looking at doing something before interest rates sky rocket but paying the extra £1300 is a lot and may only make a £50 a month saving to if I renewed in Sept.

 

I was wondering if anybody has any experience of the current provider allowing customers to upgrade to a new deal earlier to try and eliminate the risk of increased prices later.

Edi81

Lenders won’t let you remortgage earlier than usual. 

Who is your current lender? 

Thrugelmir

Overpay by whatever you can afford. Minimising the impact of future rate rises is best tackled by reducing the debt owed. Initial savings maybe small but will snowball over the longer term. 

K_S

@Moneygrabber89 If you're considering a remortgage (new lender) - most mainstream remortgage offers are valid for 6 months so depending on when exactly your current fix ends in November, you should be able to secure a rate very soon. With lenders like Nationwide, you can even 'reserve' a product for 90 days so along with a 6 month offer validity should comfortably take you to November.

If you're only considering a product-switch/product-transfer/rate-switch (staying with the current lender) then how soon you can 'secure' a rate will depend on the specific lender's policy.

london21

Would hate to pay ERC.

getmore4less

london21 said:

Would hate to pay ERC.

If the numbers show you would save £1000s it makes a lot of sense.

london21

getmore4less said:

london21 said:

Would hate to pay ERC.

If the numbers show you would save £1000s it makes a lot of sense.

True if the savings is more than the total costs.