Mortgage Deal of 1.85% end this time next year. Should I be doing anything now?

johnhenstock

You can give it a few months and see what happens, rates can’t stay like this forever. Having said that, you might be able to secure a product switch now, as a bet against further increases.

london21

Altior said:

It's a bit of an old fashioned concept seemingly, but in the past people used to influence the other side of the ledger, ie earn more money. For example, OT, promotion, better paying job, second job, starting a new project / business etc. There's not much one can do about interest rates and fixed costs, the easier one to change positively is the income side. The upside of this particular financial cycle is that there is no shortage of work opportunities, and nowadays there are plenty of zero hour contract type casual labour options, contracting and so on. Depending obviously on location, access to transport, skills etc. 

I agree, we sometimes only focus on cutting costs.

Earlier in the year I was planning to speak with management with regards to increasing my income as everything was going up but did get pay rise and bonus before I got to asking.

I have been at my current company for over 6 years, so if a better opportunity paying more comes along and bills continue to increase then that's it.

also looked at ways to stretch my resources, wasn't getting max interest on my savings but by opening new savings accounts getting something now. 

Also considering upskilling because things contently changing. 

Sg28

johnhenstock said:

You can give it a few months and see what happens, rates can’t stay like this forever. Having said that, you might be able to secure a product switch now, as a bet against further increases.

Rates can stay like this forever, in fact apart from the last 10 years rates have been like this forever. Well normally higher than this actually. 

fewcloudy

Nothing to add to this really, just to say that after reading the whole thread, I'm in Team Altior

vibez

Thanks for all the responses, plenty to think about. One thing I can't quite reconcile is extending the term. Isn't that just kicking the can down the road causing me more pain in the future?

CSI_Yorkshire

vibez said:

Thanks for all the responses, plenty to think about. One thing I can't quite reconcile is extending the term. Isn't that just kicking the can down the road causing me more pain in the future?

If you extend the term, the required monthly payments get lower so it's easier to manage with cashflow.

You can then either overpay with spare cash or put it in a savings account if that has a higher rate.

It just means that you haven't 'locked in' a very high monthly payment.