Fixed rate mortgage renewal

sanova76

Hi,

Need some advice please.  I'm on fixed rate mortgage until March 2023.  I think my bank allows me to choose a new deal once I have 6 months left?  I'm going for a fixed rate again because that way I can budget.

Is it worth choosing a new deal in advance or just wait until nearer time (like 1 month before)?  Seems the interest rate will keep going up...

Is there any way to estimate what will be my interest rate and monthly payment, my bank won't show anything as I'm not due for renewal yet.


Thanks in advance.

San

jj_43

Shop around now and compare rates. They will reflect any expected increases which are all baked in. You and others may have a view if they will increase more or less than that.

K_S

sanova76 said:

Hi,

Need some advice please.  I'm on fixed rate mortgage until March 2023.  I think my bank allows me to choose a new deal once I have 6 months left?  I'm going for a fixed rate again because that way I can budget.

Is it worth choosing a new deal in advance or just wait until nearer time (like 1 month before)?  Seems the interest rate will keep going up...

Is there any way to estimate what will be my interest rate and monthly payment, my bank won't show anything as I'm not due for renewal yet.

Thanks in advance.

San

@sanova76 Given that you're only a couple of weeks from your product-transfer/product-switch/rate-switch window opening, you can have a look at the current product-switch rates if your lender publishes them (not all of them do) to get a rough estimate of what you may expect to see after 1st October.

Just google "<lender name> for intermediaries product guide" and you should be able to see what the rates are as of today for existing customer product switches.

sanova76

Thanks for the replies.

Another question, if I choose a 5 year deal and the interest rate goes down during that time, I'll end up paying more interest to the bank?

Thanks.

housebuyer143

sanova76 said:

Thanks for the replies.

Another question, if I choose a 5 year deal and the interest rate goes down during that time, will I be paying less interest?  I assumed I'll still pay the same monthly payment?

Thanks.

If you choose a fixed rate the rate stays the same even if they go down across the board. That's the nature and risk of a fixed deal.