Should I switch from a low fixed rate now?

Gnagtrof

I’m currently still in my 2 year fixed rate mortgage, due to end in June 2023, so 9 months away. It’s £757 and I’m overpaying an extra £100 so £857.

Should I switch to a new mortgage now, and forfeit the low interest rate I currently have for today’s interest rates, or should I hold out and switch nearer the time? I’m worried that that the rates are just going to keep going up so by the time I need to switch, todays rates will seem low in comparison. 

Don’t know what to do!

thanks
G

IvyFlood

Million Doller Question! I'm in the same boat ours ends September 23. It's a horrible situation to be in we don't know what to do either. Think we might wait until at least the new year...

CSL0183

Gnagtrof said:

I’m currently still in my 2 year fixed rate mortgage, due to end in June 2023, so 9 months away. It’s £757 and I’m overpaying an extra £100 so £857.

Should I switch to a new mortgage now, and forfeit the low interest rate I currently have for today’s interest rates, or should I hold out and switch nearer the time? I’m worried that that the rates are just going to keep going up so by the time I need to switch, todays rates will seem low in comparison. 

Don’t know what to do!

thanks
G

Yes, I would. Anything within 12 months I would be bailing out, paying the ERC and fixing for 5yrs ASAP and preferably before the next rate hike in November. (Perhaps sooner it the BOE intervene and react) 

Experts are predicting base rate to be up at 6% by middle of next year and 4% by end of this year. Take the hit now otherwise it’s going to be painful in June. 

CSL0183

IvyFlood said:

Million Doller Question! I'm in the same boat ours ends September 23. It's a horrible situation to be in we don't know what to do either. Think we might wait until at least the new year...

This would have been my position up until last Fridays mini budget but with the £ so low and the Gilt so high coupled with inflation being so high, suspect we are heading for 4% base rate by the year end. Expert predictions at 6% by middle of next year. 

There were people on here just before the last one saying “I’m going to hold on a few months” then the base rate went up 0.5% and lenders increased their fixed rates by around 0.6% almost instantly. There’s more of these announcements coming. If only they had followed their gut instincts, they would have escaped that. I was in the same boat, 2.3 fix is coming to an end at the end of November, got a 5yr fix at 3.52% offered early Sept, and I was umming and ahing and then decided to go for it. Last Thursday when they upped them by 0.5%, I went onto check again and the 5yr fix had moved up to 4.08% from the 3.52% thee previous day. 

london21

Might be worth doing it as soon as you can before further increases.

5 years fix.