Worth waiting?

MaterialGirl*

I need to remortgage by 31st May this year. 

I’ve been quoted an interest rate of 4.88%. 

I’m not sure if I should lock this rate in now or if it is worth waiting until early May to see if rates might come down slightly. Is there any chance that could happen in that short a time period? 

aoleks

there's a chance rates will stay the same, come up or go down .

having said that, you don't have to fix. the common thought is that we are beyond the peak of inflation and since base rates were already factored in, there is potential they will come down, though not in the very short term (e.g. 3 months). that being said, banks are competing heavily for business, so some reduction is likely, but we're talking .05% percentage points or something along those lines, not 1-2%.

with that in mind and depending on your risk appetite, you can go on a tracker mortgage for the time being and fix in 6-12-18 months time, when things should, HOPEFULLY, improve a bit.

ACG

4.88% seems a little on the high side, but if you have a small mortgage (ie you are better paying a higher rate and no arrangement fee) it isnt too bad. 

I think rates may come down a little more, but not significantly so. Although I think rates might come down marginally, I also think there is a greater chance you could miss the boat if you hold off until may and rates will be back on the up again by then. 

MaterialGirl*

There wouldn’t be an arrangement fee with that rate. I’ve looked at trackers but I think I value a fixed repayment amount each month more.