Should I remortgage right now?

Irn_Dru

Hello everyone,
We have a year left on our introductory fixed term mortgage and we are wondering - given the interest rate hikes that are coming - whether we should go ahead and remortgage now? Our loan was for £173k at 2.8% interest, and we've been told that if we remortgaged now we'd be paying 3.6%. So by next summer it'll likely be even higher! There's no chance of us keeping our current rate of 2.8%. My aim is basically to secure the best/lowest interest rate I can, whether by remortgaging now or waiting until my fixed term is up next September?
Some other factors:
1. We have the funds to pay 20% of the loan value right now. We were planning to pay in 10% of the value in both year 1 and 2 so as to reduce the term, but we could also wait and use it when our 2 year fixed finishes. Unclear which is the better move in terms of securing a lower interest rate.
2. Unfortunately, we'd be sticking with our current provider, Halifax, as only they do mortgages for Golden Share properties (a Scottish scheme: buy at a 10% reduction and sell at a 10% reduction).
Thanks in advance for any thoughts or advice.
Andrew

zuzuvela

I decided to remortgage before my 5-year fixed rate is up with the view that mortgage interest rates were going to increase significantly. I calculated the costs of different scenarios and remortgaging at a slightly higher rate for a reduced mortgage term was my best option. I would recommend playing around with the calculators to see what works for you.

K_S

Irn_Dru said:

Hello everyone,
We have a year left on our introductory fixed term mortgage and we are wondering - given the interest rate hikes that are coming - whether we should go ahead and remortgage now? Our loan was for £173k at 2.8% interest, and we've been told that if we remortgaged now we'd be paying 3.6%. So by next summer it'll likely be even higher! There's no chance of us keeping our current rate of 2.8%. My aim is basically to secure the best/lowest interest rate I can, whether by remortgaging now or waiting until my fixed term is up next September?
Some other factors:
1. We have the funds to pay 20% of the loan value right now. We were planning to pay in 10% of the value in both year 1 and 2 so as to reduce the term, but we could also wait and use it when our 2 year fixed finishes. Unclear which is the better move in terms of securing a lower interest rate.
2. Unfortunately, we'd be sticking with our current provider, Halifax, as only they do mortgages for Golden Share properties (a Scottish scheme: buy at a 10% reduction and sell at a 10% reduction).
Thanks in advance for any thoughts or advice.
Andrew

@irn_dru You may need to be quick with Halifax as they're upping rates (at least the intermediary ones) from Wednesday. That may or may not apply to existing-customer product-switch rates but perhaps worth checking with them.