Husband and I disagree - fix or discount

joanna3293

We have £89,00 remaining on our mortgage, property value £350,000, term left 9 years.  Currently with Hinkley and Rugby who have offered us Term of the mortgage discount of 3.94% off the SVR (£925 month) or 2 year discount of 4.99% off the SVR (£903 month). Both have early repayment charges only for the first 2 years.  We also went through a broker with Habito to see the best fixed rate we could get, we have been offered 4.34% for 5 years with Natwest (£1,013 month).  I would like to go with Natwest, my husband prefers the cheaper whole term of the mortgage discount with Hinkley and Rugby.  I know this would save money in the short term but I'm worried about the interest rates and how far they will go up.  I know there is no crystal ball of an answer but I would love some advice/points of view from this forum as I'm feeling very overwhelmed! thank you

JMA74

If it makes your decision any easier the Remortgage rate for under 60% ltv with 5 years fix with Natwest was recently increased to 5.74%

simon_or

I'm afraid that NatWest rate is ancient history as they have increased rates again yesterday. Swap rates are again rising so it'll probably move up again in the next few weeks.

https://forums.moneysavingexpert.com/discussion/6393452/natwest-purchase-remo-and-switcher-rates-going-up-today-10th-october

I've not heard of that bank but I'm with your husband on this, especially as you're already with them. Not sure about term or 2 year discount.

Cheesy77

simon_or said:

I'm afraid that NatWest rate is ancient history as they have increased rates again yesterday. Swap rates are again rising so it'll probably move up again in the next few weeks.

https://forums.moneysavingexpert.com/discussion/6393452/natwest-purchase-remo-and-switcher-rates-going-up-today-10th-october

I've not heard of that bank but I'm with your husband on this, especially as you're already with them. Not sure about term or 2 year discount.

Swap rates rose yesterday for a bit but have fallen today. Its not correct that they're on a  purely upward trajectory. There's a load of uncertainty. 

simon_or

You're right, I'm not tracking it on an hourly basis, just the trend over the last week on the SONIA 5yr swap (as the OP mentioned a 5yr fix) that has been upward.

I also missed the part about the boe stepping in again today to buy gilts and calm the market. God knows what'll happen when they stop on Friday (fwiw I think they'll extend it to the Halloween statement).

It's all up in the air, who knows what'll happen.

Cheesy77 said:

simon_or said:

I'm afraid that NatWest rate is ancient history as they have increased rates again yesterday. Swap rates are again rising so it'll probably move up again in the next few weeks.

https://forums.moneysavingexpert.com/discussion/6393452/natwest-purchase-remo-and-switcher-rates-going-up-today-10th-october

I've not heard of that bank but I'm with your husband on this, especially as you're already with them. Not sure about term or 2 year discount.

Swap rates rose yesterday for a bit but have fallen today. Its not correct that they're on a  purely upward trajectory. There's a load of uncertainty. 

london21

Personally prefer fixed to variable for some certainty and able to plan.

The NatWest rate unless application has been made might have increased again. 

joanna3293

london21 said:

Personally prefer fixed to variable for some certainty and able to plan.

The NatWest rate unless application has been made might have increased again. 

thank you, application is in and accepted, just waiting on the survey but completely unable to choose between fixed with natwest or variable with Hinkley & Rugby, it is hard to accept £100 more a month with natwest (while sitting here with the heating off :-) ) but it wouldnt break us, the rise in interest rates might I think

simon_or

In that case I'd stick with NatWest. 4ish% is quite good and your loan size is relatively small.

Cheesy77

simon_or said:

You're right, I'm not tracking it on an hourly basis, just the trend over the last week on the SONIA 5yr swap (as the OP mentioned a 5yr fix) that has been upward.

I also missed the part about the boe stepping in again today to buy gilts and calm the market. God knows what'll happen when they stop on Friday (fwiw I think they'll extend it to the Halloween statement).

It's all up in the air, who knows what'll happen.

Yeah good point. They seem to be lurching from one disaster to the next. Rates could be anything from 0-100% at this rate 

london21

joanna3293 said:

london21 said:

Personally prefer fixed to variable for some certainty and able to plan.

The NatWest rate unless application has been made might have increased again. 

thank you, application is in and accepted, just waiting on the survey but completely unable to choose between fixed with natwest or variable with Hinkley & Rugby, it is hard to accept £100 more a month with natwest (while sitting here with the heating off :-) ) but it wouldnt break us, the rise in interest rates might I think

Is your husband aware that with variable, there are 2 more increases in 2022 next is on the 3rd of November 2022 and 15th December 2022.

The NatWest application/offer will be valid for some months so some time to finalise decision. 

Ksw3

NatWest absolutely for me.