If you were remortgaging, which rate would you choose?

Bald93

5 year fixed - 4.08%

I took a 7 year fix in June 22 that took effect in October 22. 

The reason was the rate was the same as the 5 year without a fee and gave us peace of mind for long period where we hope our salary will increase to allow for overpayment etc. 

I’m this case the 5 year is the cheapest option and is still medium term that hopefully todays issues will have lowered. 

RogerPensionGuy

7 year fixed - 4.37%

Maybe look at charges and take a long term view of where you think mortgage rates will be in 5 or 7 years, your LTA in 7 years maybe allows a best or better deal at that time.

I think we have had super low rates for too long and got too used of them, the government and banks have done just about everything to pump up house prices in the UK and allowed some people to get in to too much debts, super low rates have gone now and probably will not return, we will probably just go back to UK long term average rates for debts.

I know a few people who took out 5 to 10 year fixed deals in 2021/2022 as they were advised super low rates will soon end, they feel very happy now, I also know people who are getting/re-mortgaging in 2023/24 and are very stressed out ending deals of between 1 and 2%

It just appears to me mortgage rates will just get a little higher in the next 6/18mnts, say they will go up maybe 0.75/1.25% and maintain about this level till about 2025 and then ease down slowly to the long term average, we just need to get used of higher rates I think.

https://www.thisismoney.co.uk/money/article-12197535/Latest-mortgage-news-rates-remain-high-years-says-former-Bank-governor.html
   

RogerPensionGuy

7 year fixed - 4.37%

I was just reminded by a friend of the link below, just as UK house prices reached a peak in 2022, the Bank of England stepped in to keep the train on its tracks.

https://www.thisismoney.co.uk/money/mortgageshome/article-10934603/Mortgage-affordability-test-axed-Bank-England.html

zagubov

When we switched to an eight-year repayment mortgage, we got a five year low-rate fix (1.49%)so we could stop worrying about rates for most of the term.

They said they'd transfer us to their best available rate when that fix ended

So we were offered a better rate for a 1.09% two-year fix so we jumped at that.

This ends soon and leaves us at SVR (6ish %) for the remaining 14 months of the mortgage. We can't get a fix which is that short and if we extended the mortgage to two years for a fix it'd still be above 6%.
 
As our savings aren't earning much for us, at that point we'd probably be better off using them to just pay off the balance.

Our only regret was being on variable rate before switching to repayment- with hindsight we always felt more secure when on a fix.

george4064

5 year fixed - 4.08%

MansonXV said:

Hey there! When considering the options for remortgaging, it's essential to evaluate the different rates and their implications. The 2-year fixed rate at 4.49% might seem appealing initially due to the lower rate, but keep in mind that it will require you to revisit the decision sooner. The 5-year fixed rate of 4.08% provides a longer period of stability with a slightly lower rate, which could be advantageous. However, if you prefer a longer-term solution, the 7-year fixed rate at 4.37% offers some peace of mind.

ChatGPT response?