Halifax Offers for Fixing

abaka

Hi,

So we're within 6 months of our current mortgage term ending and like everybody the price is going up no matter what we do!!

Unfortunately due to debt problems both me and my wife are dealing with, we can't switch providers so we're stuck where we are.

Our current deal is 3.24% which equals £421.79 a month.

Our options are fix for 2 years @ 4.70% which equals £494.05 a month or 5 years @ 4.01% which equals £459.08

We also have a ten year fix but it's not even worth considering.

Both options are affordable.  I think if we fixed for 2 years we'd likely get a better rate in 2 years time....but fixing for 5 years means we'll have a bit of extra money to go towards other debts and we won't have to worry about the mortgage for another 5 years (I've had a few sleepless nights about the mortgage since Sept, at least it's not as bad as what way it looked to be going in Sept!)

What are people's thoughts.  Am I doing the right thing to fix for 5 years to allow us to prioritise the other debts.  The plan is to have the debt cleared within 3-4 years.

I mistakenly fixed back in 2018 for 5 years when it appeared rates were going back up and missed the really low period that Covid brought, so I'm somewhat cautious of fixing for so long.  I do think the 5 year fix is advantageous in the fact it's affordable, will continue to be affordable for the 5 years and Mortgage can go to the back of our head for a few years!

ruelle

I'm currently looking at rates for remortgaging and 4.01% is very good for a 5 year fix (cheapest is probably around 3.99%). I think if you have other debts to clear, it would be more sensible to opt for 5 years. I think the 2 year option is a more high risk option and it seems like even a very small increase (if rates do go up again) might seriously ruin your finances, so I'd go with 5 based on your post. Or you could do a 3 year fix if 5 is too long?

Good luck! 

FashionHeart

I'm in the same predicament - my current mortgage ends in August 2023.

However, I'm in a complex situation - I'm looking to move within the next 5 years because I want to be closer to work…but my mother objects to my decision to move as she really loves the property we live in right now.

Therefore I have just opted to fix the mortgage for 5 years just to make my mother happy.

After much deliberating I have come to a realisation that regardless and no matter what everyone does in this situation, I personally don't think there will be much difference to what we all do as the economy will not fully recover after 5 years anyway at the rate things are progressing at the moment.

bamgbost

@abaka
Im in the same boat..albeit slightly different rates with Halifax

@4.85%, 2 years
@4.15%, 5 years
@4.38%, 10 years

But for some reason, although I can see the rate it wont let me accept it online. Says I need to call an advisor to do it. Is that the same for you?

abaka

No, mine is all accepted.  I didn’t have any issues!

(we went with the 5 year fix) 

bamgbost

strange! will have to call them