How is everyone's situation regarding interest rates?

newfoundglory

Current 1.79 fix until Feb 23.  I am currently trying to get a 5 year 4.2% fix for an offset mortgage, as that is the only practical way to reduce the interest paid.

BMRB

hewhohuntselves said:

xzibit said:

sammyjammy said:

xzibit said:

Our ERC is currently about £2,200 on a £220k balance. LTV is 49%. Fix is up end of March 23. 

Is there any chance that we could be better off by paying the ERC now and fixing at the current 3.2% - 3.6% offers rather than waiting for the 0.5% minimum base rate rise in mid-Sept? Our current plan is to try and fix end of September to get the 6 month DIP but obviously at that point the rate would have risen. If payments are likely to be £950 for the current deals, what would this raise to end Sept?

Nobody can tell you that until its happened, they may raise by 0.25% or 0.5% or more or less!  Personally I would just hold off until end of September and reserve a new product.  You could calculate how much each 0.25% raises your payment over five years to help you decide.  

Would you pay the £2k from savings or add to mortgage?  Obviously that would also make a difference

I’ll do some calculations at different rates and see. I’ll also play about with adding money in from savings to reduce the borrowing amount. If I paid the ERC it would be from savings. But having thought about it, it’s probably not a great idea. 

Try this calculator: https://app.nous.co/refix

Thanks for sharing this!!

Whilst I had calculated in excel whether paying the ERC is worthwhile on our current deal, this calculator makes it very simple to see how the various interest rate attitudes could affect moving to a new deal.  It's not going to predict the future but it gives a nice indicator.  Thanks again

HoneyRoastedParsnip

Okay so we are 2.49% until 31 May 23. Was 80% LTV. Now 230kish plus 10% inc on house price so now 70% LTV. ERC is 2300ish (1%) I think I’m priced and Callum tomorrow hope to book appointment before next raise and lock in to lower ERC. We’ll see. 

GoonerByron

Currently 1.64% fixed until March 2023. Have agreed a variable discount mortgage with a current rate of 1.62% for 2 years but have never been on a variable mortgage before… No idea what the rate will be by time the mortgage starts in 6 months. Am getting cold feet and considering a 3.2% fixed now..