Rates are dropping slightly

london21

Hi All, 

My current mortgage is due to end 01/ 02/2024.

Virgin Money have reduced their rates a bit so booked another appointment to get the better rate.
65% LTV with £995 product fee.
2 years 5.49%
3 years 5.39%
5 years 4.99%
 

Have until January to finalise new rate so hopefully rates keeps going down.

Worth checking if rates have dropped, would have to contact lender before rates start to benefit from the reduced rate.

TheAble

Personally I'd go 3. I don't think the market/economy will be able to sustain these rates for long, such are the debt levels. Only my opinion though - go with what you feel is right.

sevenhills

You nor anyone else knows what the mortgage rate will be, beyond two years time.
I opted for a ten year mortgage six years ago.

tony863

Just opted for 10yr mortgage on 4.94%

I wouldn't risk anything less than 5yrs and anyone saying it'll be below 4% in the next 3-5yrs hasn't done much reading. Historic average is 7.10%

london21

Thanks All, 

Sister in law in similar situation went for 2 years. 

One part of me thinks 3 years. 5 years a bit lower but i have 6 months left so in total 3.5 years so will be ending early 2027.

Will extend from 26 years to 30 years and put 10k lump sum in. 

boingy

It's impossible to say but I think interest rates have yet to peak and will be very slow to go back down again. 

Ramie2021

unfortunately, that is the million dollar question. I think it is gamble either way as can’t predict the economy or what will happen to interested rates in the short term (1-3 years).

VNX

I think taking out a five or ten year fix now you’ll end up paying more over that period as rates should ease but of course if you can afford the five/ten year monthly payment you have piece of mind if projections are wrong or something untowards happens 

SensibleSarah

I've just gone for 3 years. There wasn't much difference in rates vs longer and I do ideally want to move at some point, so hedged my bets a bit. If I wasn't planning on moving then I would probably have opted for longer. 

london21

I have gotten to the decision in principle stage but rates have increased again booked a mortgage appointment for tomorrow. 

From yesterday the 3 years fixed have increased from 5.59% to 5.99%.

london21

Virgin money so annoying, They are still doing 120 days before but someone said from tomorrow will go to 180 days.

I have also started application with TSB bank in case Virgin money don't change from 120 days to 180 days as rates going up again on Thursday.

I have decided to go for a 2 years fixed as new rate will start from February 2024.