Remortgage due Jan 2024

Clare8132

Hi, we are due to remortgage Jan 2024. Our current interest rate is 1.79% - our mortgage is £225k.
Do we look to lock in a deal now or hold out to nearer the time? Very worried the £250-400 a month increase will hit us hard. 

K_S

@Clare8132 If you lock in a rate now with a mainstream lender that will allow you to complete in January then you've given yourself some optionality as you can always choose not to go ahead with this deal.

If you leave it to close to Jan then you're leaving yourself open to whatever is available at that time.

To reduce the monthly payment, it might also be with considering stretching the term. You can always choose to achieve the same interest rate savings that you would with a shorter term by making voluntary overpayments.

Clare8132 said:

Hi, we are due to remortgage Jan 2024. Our current interest rate is 1.79% - our mortgage is £225k.
Do we look to lock in a deal now or hold out to nearer the time? Very worried the £250-400 a month increase will hit us hard. 

RogerPensionGuy

Clare8132 said:

Hi, we are due to remortgage Jan 2024. Our current interest rate is 1.79% - our mortgage is £225k.
Do we look to lock in a deal now or hold out to nearer the time? Very worried the £250-400 a month increase will hit us hard. 

I suggest you go on a market comparison site today as if you were remortgaging now and see how it looks.

1.79% currently, it will be interesting to see what % rate the market offers you today and the monthly or yearly difference is?

Then just read up, investigate and try guessing what % rates will be kicking about Xmas this year, bear in mind the LTA % may be difficult depending on housing valuations. 

My reading is the Bank of England will be keeping their rate at about 5%(+/-0.5%) for the next 12/15 months and a gentle downwards to 4ish% autumn 2024 if core inflation can be controlled. 

The 1% mortgage deals were great for some people but, think they won't come back anytime soon, I'm guessing we will just be hovering at around the long-term average the next long while.

I really feel for people who took on big mortgages with the government Help To Buy schemes over the last 11 years put in place to prop up the builders and the housing industry when they should of actually just built more housing instead of just talking about it. What a shambles. 

fackers_2

Clare8132 said:

Hi, we are due to remortgage Jan 2024. Our current interest rate is 1.79% - our mortgage is £225k.
Do we look to lock in a deal now or hold out to nearer the time? Very worried the £250-400 a month increase will hit us hard. 

as above. Secure a deal now which lasts until renewal which can be a backstop. See where rates are in Jan. If higher, use the rate deal you got from your search today. 

Also worth paying off max about of your mortgage that you can now to reduce the remortgage amount while you’re still on a great rate. 

simon_or

As K_S said, lock in a deal now. No extra points for waiting and watching as then you're leaving yourself at the mercy of future events.

naf123

Is it possible to lock more than 6 months in advance?

Bobby_Peel

I'm in the same boat. Current interest rate is 0.99% and ends on December 31st 2023. Called Halifax today for an appointment and had to make the appointment in July so it's within 6 months.

simon_or

If you're already with Halifax and want to stay with them, why do you need an appointment, can't you just login online on 1 July and do it?

Bobby_Peel

Mine is buy to let and they'll only do it via an appointment.

simon_or

I didn't even know Halifax do buy to let! I guess it's a historic mortgage from before the financial crisis?

Or is it Birmingham Midshires, the Lloyds BTL bank?

kingstreet

simon_or said:

I didn't even know Halifax do buy to let! I guess it's a historic mortgage from before the financial crisis?

Or is it Birmingham Midshires, the Lloyds BTL bank?

It's direct only.