Worried about upcoming mortgage refinance

ElwoodBlues

Bear in mind that the lenders are trying to pre empt the base rate increases so the interest rates that they're offering today have already factored in the anticipated base rate rises. I think the BoE was too slow (by about 10 years, but that's another discussion) to put up the base rate, now they're making a knee jerk over reaction. Leaves me wondering if in 6 months to a years time everyone will be looking back and thinking that the BoE crashed the housing market for nothing. Oil and gas are what's fuelled inflation, and that's priced on a global market price, UK interest rates can't control it.

But as you know, your 1.3% mortgage rate will be ancient history after next May, so you might as well get in some preparation for it by overpaying now.

ellenvan

No one can correctly predict - my advice;
Overpay as much as you can starting now - then better LTV
Cut down any non-essential spends and build price rises into your budget now.

Cheesy77

nick1234 said:

Dont see how rates will come down when inflation is predicted to be 10% + for at least 2 years, already 5% rates are too low to control inflation.  

It's not. Most forecasts have inflation falling significantly in 2023 and being close to the 2% target within 2 years. 

And as someone has already said, the base rate is currently 2.25% not 5%.