Halifax Deal Ending - New Deals, Predictions, BOE MPC

rjmachin

My current mortgage with Halifax is 5 years at 3.04%, ending 31st October 2023.  Currently paying £475 per month.

£67k remaining on a was £165k property (2013).   According to the Halifax HelloHome page, the property is estimated now at £280k (24% LTV)

The 6 months window has now opened where I can choose another product without any fees.

They are offering these options:
1. Do nothing and move to variable at 7.74% from 01/11/2023 (£622 per month)
2. 2 year fix - 4.7% (£512 per month)
3. 5 year fix - 4.01% (£489 per month)
4. 10 year fix - 4.36% (£500 per month)

Are mortgage rates expecting to come down still, or are they are the expected lower end now?

There is a BOE meeting this week, so if they interest rates increases again, how is that likely to affect the fixed rates?

As I have just under 6 months left on my current deal, is it worth waiting a few more months to see if they drop some more?

dimbo61

Put the figures  in " whatsthecost" and see how much you would owe in 5 years ?
Then consider can you overpay  each month to clear the outstanding balance in 5 years ? 
Alot of your mortgage payment is now going on the repayment part with less on the Interest part.

rjmachin

After 5 years at 4.01%, without overpayments, the balance would be: £48,955
If I overpay £200 per month, the balance after 5 years would be: £35,690
If I overpay £300 per month, the balance after 5 years would be: £29,060

If the interest rate of the 5 year fixed dropped to 3.79%, the balance after 5 years would be £48,739
If I overpay £200 per month, the balance after 5 years would be: £35,550
If I overpay £300 per month, the balance after 5 years would be: £28,950

If the interest rate of the 5 year fixed dropped to 3.04% (my current rate), the balance after 5 years would be £47,956
If I overpay £200 per month, the balance after 5 years would be: £35,010
If I overpay £300 per month, the balance after 5 years would be: £28,540


So it looks like without overpayments, I will pay an extra £840 over five years, and this will reduce the mortgage by £18k compare to £19k on my current rate

So my conundrum is whether to wait to see if the rate drops at all over the next few (3-6) months, which would save quite a bit, but would also cost me more if they went up.  Or, bite the bullet now, and kick myself later if they drop, but be relieved if they go up

steve866

Could you consider a tracker with no early repayment fee?