Who else is riding it out?!

IvyFlood

So amidst all the panic last week we were due to have a meeting with a broker on Saturday. I actually spoke to him today ahead of it and he said rates are going up tomorrow and did we want to submit our application today.

Our current fix (2.64%) ends September next year so we’d incur a £1400 ERC if we re-mortgaged now.

We’ve just decided to enjoy our low rate and we are also going to overpay while we can this next year.

It sounds like if we waited till Saturday, we’d have a rate option of no less than 5%, maybe 4.5% today.

We can start the process again in March 23, providing lenders are still offering deals for 6 months, my only concern is our house loses value, but hopefully nothing too drastic!

Hope we’ve made the right decision! Is anyone else riding it out?

B0bbyEwing

Not sure where to go yet. I'm wondering about taking proper advice. This weekend was supposed to be number crunching but life events got in the way. Especially Sunday which was the day I'd earmarked to sort it.

In the space of about 4-5 days we're getting £40 more expensive quotes than we were. 

Any overpaying from us comes at the expense of something - which would be at the expense of extra going in to retirement pots. 

So yeah, at the moment I'm wondering if taking proper advice may be a good idea. 

C225

As I've mentioned in my thread my current deal expires November next year, so a month to wait until i can only pay a 1% ERC.  If i can pay that and get a rate of about 5% or below to fix (and thats a big if as it'll be after the next rate decision) i'll do it for peace of mind.

If the only rates available are above that i'll ride out my deal for the year saving and overpaying as much as possible and see where the land lies next November. Possibly move to a tracker or discount and take 6-12 months of pain until it all settles down a bit again before fixing again.

Doing the maths assuming i could fix now at 4.79% which is unlikely it would be £4500 more over the next year including the ERC.  If in a years time the rate is over 6.29% for a 5 year fix then i would be better off fixing now. So as mentioned it'll all come down to what i could potentially fix for in a months time and what the predictions for the market are.

IvyFlood

B0bbyEwing said:

Not sure where to go yet. I'm wondering about taking proper advice. This weekend was supposed to be number crunching but life events got in the way. Especially Sunday which was the day I'd earmarked to sort it.

In the space of about 4-5 days we're getting £40 more expensive quotes than we were. 

Any overpaying from us comes at the expense of something - which would be at the expense of extra going in to retirement pots. 

So yeah, at the moment I'm wondering if taking proper advice may be a good idea. 

We are halving our monthly savings to overpay. 

I don't have a private pension though always thought I possibly should!

brownbagsFTB

Yeah I’m riding it out, my fix ends at the end of September 23 so I’ve got a whole year of a low rate. I can only do a product switch with my current lender as I recently changed my employment status from sole trader to limited company and their rates are already at 6% for a fix. I’m going to just switch onto the discounted variable if they don’t get better by next autumn, my ERC is nearly £3K so I’d be throwing money away and going onto a much higher rate for the coming year if I fix now, it doesn’t make sense. 

Scorpio33

Yep, I'm on 2.5%, but it is fixed until 2029 (So riding it out until then)

housebuyer143

I'm on a tracker and it's quite low so just sticking with it at this point. If the base rate goes up then I'll just pay it, but in the meantime i am saving £200 a month by not fixing on the current fixed rates. 

abaka

I’m riding it out.  My rate of 3.49 ends in October next year.   If I cancelled today it would be near 3k ERC.

I’m carrying a substantial amount of debt at present also so repaying the lower rate for 12 months and focusing on paying off the debts for the next 12 months.  I can possibily half my debts in 12 months and with what I’d be saving in minimum payments etc will hopefully cover my half of a mortgage increase.

I’ve planned for a potential rate of 8/9% next year….anything else might see us struggle a bit more.

goodfor_

My 5yr Fixed at 2.29 ends the beginning of Jan next year. I was tempted to ride it out with a tracker, but Santander PTs aren't that great. Santander PT is easier and quicker at this time as accounts for 1st year trading — while good — are not yet complete/filed and no real income in the previous 2 years (covid/lockdowns). 

Santander current PTs are:
1. 2yr Tracker at 3.69 (+1.44)
2. 2yr Fixed at 5.89
3. 3yr Fixed at 6.14

ERC is 3% for 2 & 3 (zero for the tracker)

So main quandary is do I spend some time completing accounts to potentially enable a whole market search (but risk more change in the coming week/s), or choose an an option from the 3 above?

B0bbyEwing

IvyFlood said:

B0bbyEwing said:

Not sure where to go yet. I'm wondering about taking proper advice. This weekend was supposed to be number crunching but life events got in the way. Especially Sunday which was the day I'd earmarked to sort it.

In the space of about 4-5 days we're getting £40 more expensive quotes than we were. 

Any overpaying from us comes at the expense of something - which would be at the expense of extra going in to retirement pots. 

So yeah, at the moment I'm wondering if taking proper advice may be a good idea. 

We are halving our monthly savings to overpay. 

I don't have a private pension though always thought I possibly should!

You don't necessarily need a private one. 

My employer pays in the minimum. As do I. 

Beyond this I put in to my own private one as I want to put more than the minimum to my retirement but invest in riskier funds as my workplace one can't be altered. 

My OH on the other hand works for the NHS & from memory has a total of 27% going in - 7% from her. I think this was going up too but I'm not 100% sure. So in my OHs case. I wouldn't be overly worried about having a private one or not as thr workplace one is a good deal. 

jmb1

We've no intention of moving house in next 10 years. Santander have offered 4.7% for 2 yrs fixed, or 4.6% for 10 years. So I guess the possibly unanswerable question is, will the rates remain steady, or even likelier rise over 10 years, or will they drop back down again over the next two? I hate the idea of being stuck at an inflated rate for 10 years, but then, that could actually be a better deal in two years time if we come to get a new deal and they're through the roof at that point. What to do?