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To remortgage now or wait!!
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nl1522
Posts: 2 Newbie

My mortgage is due for renewal in July
I can start renewing with no fee at the end of January
I can find a new 5 year fix deal now at around 3.8% this would be about £140 more a month than what I am currently paying
I would also need to pay about £1700 to get our of my current deal and about £350 to my mortgage broker. With a possible £1000 joining fee dependent on which mortgage i chose.
Is it worth fixing now or is it safe to wait until jan/feb?
Also better to fix for 5 or 2 years are rates likely to come down in the next 2 years?
I can start renewing with no fee at the end of January
I can find a new 5 year fix deal now at around 3.8% this would be about £140 more a month than what I am currently paying
I would also need to pay about £1700 to get our of my current deal and about £350 to my mortgage broker. With a possible £1000 joining fee dependent on which mortgage i chose.
Is it worth fixing now or is it safe to wait until jan/feb?
Also better to fix for 5 or 2 years are rates likely to come down in the next 2 years?
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Comments
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I'm in the same boat, ours is up next September and to fix now our ERC is about £1400.
Out of interest, who is your 3.8% with? We're with Nationwide and yesterday the rate was 3.74 but today its 4.48! Plus product fee of £999!
I have no idea whether to wait, I think there is a lot of scaremongering going on. But knowing me I do like piece of mind on what I'm paying cause I like to budget so I think we will look to fix now rather than wait till July (earliest we can do without ERC)0 -
Your mortgage is due to expire at the worst possible time (The forecasted peak)
Experts are predicting BOE BR to be at 6% at this point. For mortgage rates you are looking at 8%.If you are within your last year and have a 1% ERC and a mortgage balance over £100k then I would say yes, get out now.Forget the broker fee, you can do it yourself with your current lender. Forget the new product fee (often they are not worth it)
As for 2yr or 5yr, Crystal ball. I chose 5 personally.That 3.8% you see just now won’t last long at all, look at the other threads in this forum with what Nationwide done last night. More will follow and that’s before a large increase that is expected in November, possibly by as much as a full % point and then another one in December that will also increase. UK rates will loosely follow US and they are already at 3.25 vs our 2.25. The US Fed rate likely to be 4.5 by the year end. UK will likely be the same (issues with the giveaway last week and the plunging £)
If you wait until January I think you will come back to this thread and kick yourself. Go look at the Nationwide thread, already new mortgage rates at 6% now, today, never mind in a few months time.2 -
IvyFlood said:I'm in the same boat, ours is up next September and to fix now our ERC is about £1400.
Out of interest, who is your 3.8% with? We're with Nationwide and yesterday the rate was 3.74 but today its 4.48! Plus product fee of £999!
I have no idea whether to wait, I think there is a lot of scaremongering going on. But knowing me I do like piece of mind on what I'm paying cause I like to budget so I think we will look to fix now rather than wait till July (earliest we can do without ERC)0 -
Almost every person with a mortgage (unless they recently fixed for a long term) is having the same questions :-(
I have been looking for advise on this forum and saw few people mentioning that you can get remortgage offers with almost 9 months (6 months + month extension) validity. If you can get one like that, you can avoid paying ERC. You can also use a fee free mortgage broker.
Term is purely personal choice, but I would prefer at least 5 years in current scenario.1 -
yes its hard decision to make, im locked in till june 2023 at 1.54% with santander for 55k.
not sure if it worth paying ERC?
ERC IS £1,672.160 -
Damn ive just spotted my mortgage fixed rate of 1.44% ends Friday with HSBC, there best new 5 year fixed rate is 4.5% which Im about to pull the trigger on as I think trying to move elsewhere now to save a few pounds my catch me out if more rates gets pulled! Arrgh0
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tdawber said:yes its hard decision to make, im locked in till june 2023 at 1.54% with santander for 55k.
not sure if it worth paying ERC?
ERC IS £1,672.161 -
yeh i was thinking same but hearing 6% interest is worrying.
we cant change providers as we have another product with them on the same house as we moved midway through our product. that portion which is thankfully at 1.59 % fixed on a 7 year deal at 70k, ERC on that is nearly 3k 👀0 -
6% on 55k on 10 year loan is £113 extra a month 👀👀0
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jamiew_3 said:Damn ive just spotted my mortgage fixed rate of 1.44% ends Friday with HSBC, there best new 5 year fixed rate is 4.5% which Im about to pull the trigger on as I think trying to move elsewhere now to save a few pounds my catch me out if more rates gets pulled! ArrghLive and learn but at least you’ve noticed now.0
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