Re Mortgage Approach

chelt_Robin

I am within 6 months of my mortage fixed term expiring. I have agreed to fix for another 2 years with my current lender at just below 6%. Which is high. But I can cancel this switch rate at any time with no fee to me. Therefore closer to the actual remortgage date I am planning on seeing what better deals there are either with my current lender or with another lender. I could apply for a 5.35% at the moment with another lender but I would be tied in looking at the T&C for when it takes effect in April. Therefore I am going to hold off until around FEb/March and look again. If rates go crazy again I have 6% locked in which is just about affordable to me (just). Am I crazy not to lock into 5.35% this will be about £400 cheaper a year than near 6%, or do we think mortgage rates which fall a little further by Feb/March next year? 

london21

chelt_Robin said:

I am within 6 months of my mortage fixed term expiring. I have agreed to fix for another 2 years with my current lender at just below 6%. Which is high. But I can cancel this switch rate at any time with no fee to me. Therefore closer to the actual remortgage date I am planning on seeing what better deals there are either with my current lender or with another lender. I could apply for a 5.35% at the moment with another lender but I would be tied in looking at the T&C for when it takes effect in April. Therefore I am going to hold off until around FEb/March and look again. If rates go crazy again I have 6% locked in which is just about affordable to me (just). Am I crazy not to lock into 5.35% this will be about £400 cheaper a year than near 6%, or do we think mortgage rates which fall a little further by Feb/March next year? 

If not sure if you want to re-mortgage be careful because once it starts you will be liable for ERC to cancel after the cooling off period if any, 

The next rate increase by the BOE is on the 15th of December.

Inflation is still high; rates will increase further in the short term.

Do not know when rates will start coming down but maybe ending 2023/ 2024.