Time to remortgage!

NB86

Hi,

My fixed rate is coming to an end in December and I'm looking to remortgage.

I know no one has a crystal ball but I wondered if there were any views on whether I should go into a remortgage deal now or whether I should wait until the new budget is announced - I don't know if that will make things any better or not.

Also, are there interest only mortgages out there or are those off the table for now?

NB86

Also, is it best to fix for 5 years or 2?!

[Deleted User]

Re-mortgage with a new lender ?
Or looking to just do a product switch with the same lender ?

NB86

I can pick either option - I was looking at new lenders but I will check with my current lender too - to see what they are offering

mi-key

Personally I would hang fire for at least a couple of weeks. With the possible U-turn by the government on the mini budget it may calm the markets down, and lenders will reduce rates a bit ( they did up them a LOT from the actual interest rate rise in panic ).

NB86

Thanks mi-key - I've just read the same re the U turn on the mini budget - its so hard to know which way things will go, but fingers crossed they get better - even a saving of 1% will make a huge difference to someone like me with quite a large mortgage.

london21

Dpending on your lender some allow 3/6 months renewal before deal ends.
 At present rates are already so high but could you have secured a better deal earlier.
In the short term rates will be high as 2 more increases due in 2022.
There are talks of a possible mini budget u turn.
Personally would go for 5 years as the difference isnt much at present and for some certainty.

simon_or

Oh dear, why did you leave it so late, you could've secured a cracking rate back in June/July or even a couple of months earlier with some banks like Nationwide.

I've been on interest only with multiple banks since 2016-17 and the things they ideally want are low LTV, high income, high equity value, acceptable repayment plan (can be downsizing with some banks with a few other stipulations). The exact details are different for different banks but my broker handles all the minutae.

NB86

I know - I'm kicking myself now for not looking at rates earlier. I have a 4 month old and I've been so busy with him but still should have made the time! 
I will reach out to a broker too, to see if they can help.

Edi81

Interest only is very difficult to get these days without evidencing plan to pay at the end, high income etc.