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Mortgage extension and interest rates
LittleTennisLover
Posts: 3 Newbie
Hi all,
My partner and I are buying a new build which is due for completion in November. We have already exchanged due to a clause in the reservation contract and as part of this, had to have a mortgage agreed, despite us and the developer knowing we could only get a 6 month offer with the potential for extension.
Our current mortgage offer expires at the end of July and obviously interest rates are significantly increasing. We had initially opted to go for a 5 year fixed at 1.69%. Our broker gave us a like-for-like deal of 2.48% 3 weeks ago, but interest rates have gone up again since then.
What would people suggest would be the sensible thing to do when we go to extend our offer/get a new offer when we know completion will actually be within the offer timeline? A 2 year fixed or 5 year fixed?
My partner and I are buying a new build which is due for completion in November. We have already exchanged due to a clause in the reservation contract and as part of this, had to have a mortgage agreed, despite us and the developer knowing we could only get a 6 month offer with the potential for extension.
Our current mortgage offer expires at the end of July and obviously interest rates are significantly increasing. We had initially opted to go for a 5 year fixed at 1.69%. Our broker gave us a like-for-like deal of 2.48% 3 weeks ago, but interest rates have gone up again since then.
What would people suggest would be the sensible thing to do when we go to extend our offer/get a new offer when we know completion will actually be within the offer timeline? A 2 year fixed or 5 year fixed?
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