Deal ending in 1 year

Moneysavernov

Good morning,

What would you guys do?

My 2.19 fixed ends in feb 24
i had a broker look at deals for me but got rejected I guess because my wife now works part time. 

I can pay £2450 to fix now at 4.8% puts the mortgage around £180 more a month or should I over pay till feb and pay the £2450 off the mortgage then.

my only worry is if rates are sky high next year I could be paying a lot more than £180 more a month. 

I have paid the £2450 and fixed in now but I have a month we’re I can revert back and get the fee back. It just gives me a month to think about things.

I would like to see what you guys would do in my position 

balance is 123k 

MFWannabe

If current fix doesn’t end until Feb 2024 I’d stay with it and overpay what I can afford between now and then 

Moneysavernov

I’m 50/50 if I’m being honest if rates was to get to 7-8% so maybe base rate 6% I’m going to struggle and would require changing a few things about and having less of a life.

Feels a massive gamble.
Could be chucking money away by doing this or could be saving 1000s  

I’ve already done the deal but can pull out and get my money back and fall back onto my original mortgage. (Just to give me a few weeks to think about it)

Sam3007

Moneysavernov said:

I’m 50/50 if I’m being honest if rates was to get to 7-8% so maybe base rate 6% I’m going to struggle and would require changing a few things about and having less of a life.

Feels a massive gamble.
Could be chucking money away by doing this or could be saving 1000s  

I’ve already done the deal but can pull out and get my money back and fall back onto my original mortgage. (Just to give me a few weeks to think about it)

I am in the same situation as you but my fix rate expires in December 2023. If I was you, I would wait till the last week of the month and make a decision then. 

Moneysavernov

Sam3007 said:

Moneysavernov said:

I’m 50/50 if I’m being honest if rates was to get to 7-8% so maybe base rate 6% I’m going to struggle and would require changing a few things about and having less of a life.

Feels a massive gamble.
Could be chucking money away by doing this or could be saving 1000s  

I’ve already done the deal but can pull out and get my money back and fall back onto my original mortgage. (Just to give me a few weeks to think about it)

I am in the same situation as you but my fix rate expires in December 2023. If I was you, I would wait till the last week of the month and make a decision then. 

That’s what my plan is. worst part about it I wanted to do this a few months ago and was advised against it at a nice rate of 2.79% for 10 years.

what do you plan to do? Hold out or secure a rate now? 

Saint84

Hindsight is a wonderful thing. I have now fixed at 10 years for 3.65 percent. I want the certainty and don’t plan on moving

hildosaver

Hard to know what will happen but if it was me I would sit tight and overpay as much as I could afford and then hope that the interest rates taper off and perhaps reduce over the next year. It's possible that over the next year or two the rates will start to come down again so I personally would not be looking to fix more than 2 years right now.

Moneysavernov

hildosaver said:

Hard to know what will happen but if it was me I would sit tight and overpay as much as I could afford and then hope that the interest rates taper off and perhaps reduce over the next year. It's possible that over the next year or two the rates will start to come down again so I personally would not be looking to fix more than 2 years right now.

Thanks for your reply. As it stands ( can change very quickly) there forecasting 5-5.5% so could well be 7% rates at the bank 

Tough times