Remortgage advice

TheGame21

Hi,

We were in the process of sorting a remortgage with a broker a couple of months ago however it couldn't be sorted and now that product was taken away with the Government's announcement. That was a good rate with a small jump in monthly payments. Our mortgage expires in February and we have £295k outstanding. We have now been offered a 5 year fixed at 4.5% however it jumps our monthly payment by £500. I have been looking at trackers and other fixed but can't really find anything better. I'm a bit stuck and find this whole process overwhelming and very stressful after it was clearer 2 months ago. Do people think its worth going with the 5 year fixed?

Edi81

Two year fixes are even more expensive. 

I’d be locking in. 

nick1234

Definitely if u intend to stay long, rates are not coming down!

ChemistDude

Similar boat, ours expires June 2023. Not only are we fixing for 5 years but also paying a 1% penalty.

Ours thoughts were even if the base rate eventually goes to 5-6% and beyond, when the BoE next eases in 12-24 months after the recession really gets dire, they don’t necessarily have to go back down to zero again, they might drop to say 2%, in which case mortgage rates will be 1.5-2% above that so around the 3.5-4% mark. And so I can live with fixing at 3.8% for five years now. Peace of mind more valuable right now with all the talk of rates higher for longer. I know I’ll be glad if we fix now at sub 4% if and when mortgage rates are at 7-8% next year.