Fixed rate coming to end

N_Pars

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

CSL0183

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

You should be acting now, as in first thing tomorrow morning. Rates are going up daily. 

You can book a rate 6 months in advance. You’re a month or two late and have already missed the last 2 BOE increases. 

If you’re lucky you should still be able to secure a deal under 4% but they literally are going up daily just now. If you leave it until the new year you could be looking at 6+

N_Pars

CSL0183 said:

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

You should be acting now, as in first thing tomorrow morning. Rates are going up daily. 

You can book a rate 6 months in advance. You’re a month or two late and have already missed the last 2 BOE increases. 

If you’re lucky you should still be able to secure a deal under 4% but they literally are going up daily just now. If you leave it until the new year you could be looking at 6+

I spoke to HSBC and they said we can't do anything before November? I think that means without occurring a fee and that they would send us details in the post in November. 

Could we secure a deal with another lender now? 

froomer

N_Pars said:

CSL0183 said:

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

You should be acting now, as in first thing tomorrow morning. Rates are going up daily. 

You can book a rate 6 months in advance. You’re a month or two late and have already missed the last 2 BOE increases. 

If you’re lucky you should still be able to secure a deal under 4% but they literally are going up daily just now. If you leave it until the new year you could be looking at 6+

I spoke to HSBC and they said we can't do anything before November? I think that means without occurring a fee and that they would send us details in the post in November. 

Could we secure a deal with another lender now? 

We have a a fixed deal with HSBC until May next year. On 175k its costing us £1k to get out. If I was you, I would move provider (i just got 3.73 5year fixed with Llyods). They will hold their offer to you until Feb, just switch over then to avoid any early get-out charges.

N_Pars

froomer said:

N_Pars said:

CSL0183 said:

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

You should be acting now, as in first thing tomorrow morning. Rates are going up daily. 

You can book a rate 6 months in advance. You’re a month or two late and have already missed the last 2 BOE increases. 

If you’re lucky you should still be able to secure a deal under 4% but they literally are going up daily just now. If you leave it until the new year you could be looking at 6+

I spoke to HSBC and they said we can't do anything before November? I think that means without occurring a fee and that they would send us details in the post in November. 

Could we secure a deal with another lender now? 

We have a a fixed deal with HSBC until May next year. On 175k its costing us £1k to get out. If I was you, I would move provider (i just got 3.73 5year fixed with Llyods). They will hold their offer to you until Feb, just switch over then to avoid any early get-out charges.

How do you go about getting an offer? I've had a look on a comparison site and found a deal with natwrstv for just under 4% which would be ideal for us.
So we could secure the deal now, and switch in say November? To avoid the charge. 

nozzla

We're a similar position.  Fixed deal runs out in February, but can't change until end of November without incurring an early fee, which is £2,500.  I think potentially paying the fee could be a good idea, given that interest rates could go to 6%, which would mean an increase on our monthly payments of at least £200.  So over 2 years at least, it's cheaper to pay the fee.  Thoughts please?

froomer

nozzla said:

We're a similar position.  Fixed deal runs out in February, but can't change until end of November without incurring an early fee, which is £2,500.  I think potentially paying the fee could be a good idea, given that interest rates could go to 6%, which would mean an increase on our monthly payments of at least £200.  So over 2 years at least, it's cheaper to pay the fee.  Thoughts please?

Get a new offer from another provider. Should be valid until Feb so you can switch over then to avoid penalties.

aylithuk

It is very challenging to know what to do. If you don’t want to roll the dice here pay the ERC and lock in the deal now and let the worry flow away. Worse case you end up being bitter if everything balances/settles and you are ‘out of pocket’ 

I am rolling the dice because my ERC is £1.7k right now and if my mortgage rate went to 8% it would be £300 more a month. I am currently on 1.64% and my investments and savings are returning more than that. 

So what ever happen come October 2023 I’ll have enough via savings to pay an 8% mortgage rate for two years fixed whilst earning hopefully 4-6% interest (compounding) in the meantime. 

Or I might look at an offset mortgage. 

What I am saying here is there is always lots of options and don’t make a snap judgement based on the news, Liz wanting to stamp her authority and people on a Internet forum with so many different circumstances to your own 🙂🙂

K_S

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

@N_pars As you are only just above 5 months away from the end of your fix, you should definitely be looking at your options. Most mainstream lender fixes will be valid for 6 months from application date or 6 months from offer, both of which should suffice for your needs.

If you haven't already, have a look at the MSE best-buy mortgage comparison here https://www.moneysavingexpert.com/mortgages/best-buys/ to get a sense of the rates in the market. If your fix is ending on 28 Feb, then your remortgage completion would be set to the next working day.

HSBC has an excellent ERC schedule, so the exact date doesn't matter as much as your ERC will usually be on a pro-rated basis. So for example you could still get a Lloyds remortgage offer that expires on 28 Feb (as happened to this forumite here https://forums.moneysavingexpert.com/discussion/6390576) and decide to complete in mid-Feb, the ERC due would be 15/365 x 1% so 0.04% of your outstanding loan amount. 

K_S

nozzla said:

We're a similar position.  Fixed deal runs out in February, but can't change until end of November without incurring an early fee, which is £2,500.  I think potentially paying the fee could be a good idea, given that interest rates could go to 6%, which would mean an increase on our monthly payments of at least £200.  So over 2 years at least, it's cheaper to pay the fee.  Thoughts please?

@nozzla You could consider doing what I've suggested in the post above and get a mortgage offer from another lender that you can complete on ERC free if needed.

Then when your current lenders offers you a rate in end November, you can compare and see whether you want to remortgage (new lender) or simply do a product switch (stay with current lender).

froomer

N_Pars said:

froomer said:

N_Pars said:

CSL0183 said:

N_Pars said:

Hi, 

I'm looking for some advice on our situation. Our fixed rate of 1.9% is due to end February 2023. Should we be acting now to try and find another deal? Or leave it closer to February and hope for a miracle in that time?

Any advice appreciated, 
Thank you. 

You should be acting now, as in first thing tomorrow morning. Rates are going up daily. 

You can book a rate 6 months in advance. You’re a month or two late and have already missed the last 2 BOE increases. 

If you’re lucky you should still be able to secure a deal under 4% but they literally are going up daily just now. If you leave it until the new year you could be looking at 6+

I spoke to HSBC and they said we can't do anything before November? I think that means without occurring a fee and that they would send us details in the post in November. 

Could we secure a deal with another lender now? 

We have a a fixed deal with HSBC until May next year. On 175k its costing us £1k to get out. If I was you, I would move provider (i just got 3.73 5year fixed with Llyods). They will hold their offer to you until Feb, just switch over then to avoid any early get-out charges.

How do you go about getting an offer? I've had a look on a comparison site and found a deal with natwrstv for just under 4% which would be ideal for us.
So we could secure the deal now, and switch in say November? To avoid the charge. 

I went direct to Lloyds and done the application via video call. Took a few hours, and after they approved my mortgage at 3.73. Once approved the offer remains live for 5 months. So I'm not switching until Feb. The mortgage company cannot pull out unless your circumstances change, so they have to honour the rate.