Remortgage Renewal due in Jan 2023 - Make a deal now or Later?

Samuelstocks

We have our re-mortgage coming up in Jan 2023.

With the obvious moving around on the housing market and deals changing almost weekly. Is this something we should organise now, or wait till the new year?

Current Mortgage was a very good one with nationwide, which has been fixed for 2 years on 1.09%, (currently only paying about £600 a month) so any deal now is going to cost us much more monthly.

We have £115,000 mortgage based on 17 years remaining. (house value of about £250,000)

Best deal with Nationwide for fixed is around £863 fixed for 3 years @ 5.59% OR Tracker for £718 a month @ 3.19%(+base rate) for 2 year.

I assume Fixed is the best way to go, I also guess i'm going to have to change our term length to avoid have to find nearly £250 extra a month.


Switch now, or wait? any thoughts

london21

Are you able to swicth now without ERC?

In the short term rates will increase further.

RelievedSheff

Have you shopped around to see if other lenders are offering anything more competitive?

K_S

@samuelstocks This is more for the benefit of others that may come across this thread - with a fix ending 31-Jan-2023, you should have ideally started looking at your options back in July as most lender remortgage offers are valid for 6 months and some can even be stretch to add on 1/2/3 months to that. 

As far as 3 year fixes go (not a lot of mainstream options), the rate that you've been offered with Nationwide is unlikely to be beat, but you should still have a look at the MSE mortgage best buy comparison to compare https://www.moneysavingexpert.com/mortgages/best-buys/ or speak to a broker https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Personally, I would consider booking in a switch now to kick in on 01-Feb. In the very unlikely event that rates drop significantly between now and January, it may be possible to choose a different product for the switch (please check this with Nationwide)

Samuelstocks said:

We have our re-mortgage coming up in Jan 2023.

With the obvious moving around on the housing market and deals changing almost weekly. Is this something we should organise now, or wait till the new year?

Current Mortgage was a very good one with nationwide, which has been fixed for 2 years on 1.09%, (currently only paying about £600 a month) so any deal now is going to cost us much more monthly.

We have £115,000 mortgage based on 17 years remaining. (house value of about £250,000)

Best deal with Nationwide for fixed is around £863 fixed for 3 years @ 5.59% OR Tracker for £718 a month @ 3.19%(+base rate) for 2 year.

I assume Fixed is the best way to go, I also guess i'm going to have to change our term length to avoid have to find nearly £250 extra a month.


Switch now, or wait? any thoughts

Samuelstocks

Thank you for K_S for your info.

I've been taking further independent advice, but mostly it lines up with your notes. The only think i wasnt aware of was that i could have been looking much earlier than 6 months before the end. I would have always assumed a large penalty would have been in place. Hindsight is always great.

I think i'll be sticking with Nationwide onto a 2 year fixed for now and see what Jan -2023 may offer. 

Just to confirm, Nationwide have confirmed that if a better deal appears before now and then, I do have the opportunity to switch, but can still lock in a deal now.

As for other lenders, they are all within the same % and price per month