Remortgage advice - fix due to end 01st June and can switch as of today

waltonmark

Morning all

Our fix of 1.74% is due to end on 01st June 2023 and we are able to initiate a switch as of today. Nationwide are offering a 5 year fixed at 4.44% which would increase our monthly payment by £211. Is there an anticipation that rates might increase between now and June and therefore i'd be best to bite the bullet and take the switch now? Or might they come down slightly and i'd be offered better than the 4.44%? (appreciate this is all a bit crystal ball stuff).

For info the LTV is 39%.

All advice greatly appreicated.

mdori003

interestingly i'm in pretty much exactly the same boat, same date, different provider but similar LTV and same exact rate.

It is crystal ball stuff. I've applied for it with the hope that if it improves in the next couple of months (which on the balance of things i feel it will) i'll be able to apply for an improved rate with the same provider. I just wanted to lock down something before the rate change tomorrow in case it is as disastrous as last year. It seems hugely likely to be 0.5% which the markets seem to be expecting, but just in case.

I also am mindful the rate would have been much worse recently and I can take the hit, and like the knowledge of knowing what the rate will be and not having arrangement fees. If i was a gambling man i'd say rates will go down in next 5 years but...i'm not.

sorry that was a bit indulgent but i was surprised to see someone in exactly the same boat!

waltonmark

mdori003 said:

interestingly i'm in pretty much exactly the same boat, same date, different provider but similar LTV and same exact rate.

It is crystal ball stuff. I've applied for it with the hope that if it improves in the next couple of months (which on the balance of things i feel it will) i'll be able to apply for an improved rate with the same provider. I just wanted to lock down something before the rate change tomorrow in case it is as disastrous as last year. It seems hugely likely to be 0.5% which the markets seem to be expecting, but just in case.

I also am mindful the rate would have been much worse recently and I can take the hit, and like the knowledge of knowing what the rate will be and not having arrangement fees. If i was a gambling man i'd say rates will go down in next 5 years but...i'm not.

sorry that was a bit indulgent but i was surprised to see someone in exactly the same boat!

Thanks for responding really appreciate it. So your provider will let you choose an alternative product between now and June even if you commit to a new fix today? I wasn't aware this may be possible but would certainly make my decision a lot easier in accepting the 4.44% today. Funnily enough i'd just spoke to my dad who suggested a potential increase tomorrow of 0.5%...would this immediately be seen in renewal offers?

mdori003

Do check with your provider this is the case beforehand as i'm not with nationwide.

The 0.5% is essentially baked in, but if they went up 0.75% it may lead to a review of rates (and if they go less than 0.5 it may spook the economy like last year). Wouldn't be instantaneous though

waltonmark

mdori003 said:

Do check with your provider this is the case beforehand as i'm not with nationwide.

The 0.5% is essentially baked in, but if they went up 0.75% it may lead to a review of rates (and if they go less than 0.5 it may spook the economy like last year). Wouldn't be instantaneous though

Cheers pal. I'll have a chat with nationwide now. Did think the 0.5 is already calculated in there.

waltonmark

Update - spoke to nationwide. I can lock in the 4.44% today and if rates happen to be lower by 01st June i can resubmit for the lower rate.

mdori003

result! fingers crossed it does come down by then

mdori003

@waltonmark - just out of interest have you checked for lower rates? I had a deadline of today to tie in the payment for mine but ended up getting a very slightly improved rate