5 Yr Mortgage Comming to an end

DJSINGH

Another option could be to go for a tracker with no ERC. If rates drop by midyear, then you could look to secure for a longer term at that point. Granted you may pay fees twice, but it could be worthwhile depending on what happens.

Hoenir

mazibee said:

Interest rates are likely to go down but no one has idea when theyt will start goung down and at what pace

And if mortgage interest rates don't ?  

fergie_

DJSINGH said:

Another option could be to go for a tracker with no ERC. If rates drop by midyear, then you could look to secure for a longer term at that point. Granted you may pay fees twice, but it could be worthwhile depending on what happens.

That's what I did at the end of December (when rates were 1.5 points higher) - which was the right call - but I have now twisted and fixed as rates have started to move upward again and I didn't fancy being marooned on an expensive tracker followed by an expensive fix if they did not fall back.

Only time will tell if February was the right time to fix, but at least I have surety.

Newbie_John

Problem with tracker rates is that they are significantly higher and some banks don't even offer them now. Unless we somehow knew the rates will drop a lot soon then right now in my opinion they don't make much sense (unless you planning to move etc.)

I don't really expect huge changes in mortgage rates. The rates 1-2% were probably quite artificial due to frozen market, so they will be somewhere 2-4% in the next few years if nothing major happens in the world. The 3.89% is a good rate, if you take 4.44% for two years you would need to get one close to 3% later on to make up the difference. Nobody really knows..

mazibee

Thanks everyone for the replies and the suggestions.

I am bit confused please if someone can help suggest.

As my existing 5 year fix is ending in June 2024.

11 deals are appearing on my app and there is also a message.

"These deals are valid today (16th February 2024) and may be withdrawn at any time."

Suppose I opt for 5 Yr fix at 3.89% with  a product fee for £999 Upfront (1491.63  Monthkly Payment) TODAY.

Do I have any option to change it to any other favorable deal,  if it comes before the end of my term,  in case,  interest rates are lowered few basis points in future.

Thanks in advance.

Ammah45

I am in a similar situation as the OP with my 5-year cheap mortgage coming to an end in July. 

I am thinking, is it really sensible to fix for 5 years in the current climate? Aren't the rates likely to come down in the next couple of years? That's what I am hearing. 

mazibee

@morgmonster

Sorry for asking again.

I am bit confused please if someone can help suggest.

As my existing 5 year fix is ending in June 2024.

11 deals are appearing on my app and there is also a message.

"These deals are valid today (16th February 2024) and may be withdrawn at any time."

Suppose I opt for 5 Yr fix at 3.89% with  a product fee for £999 Upfront (1491.63  Monthkly Payment) TODAY.

Do I have any option to change it to any other favorable deal,  if it comes before the end of my term,  in case,  interest rates are lowered few basis points in future.

Thanks in advance.

amnblog

If you have a Broker book one of these Santander rates for you, we can monitor changes and put you on to a new rate if a better one comes along before June.

How it works if you apply direct or use the App I do not know.

mazibee

amnblog said:

If you have a Broker book one of these Santander rates for you, we can monitor changes and put you on to a new rate if a better one comes along before June.

How it works if you apply direct or use the App I do not know.

Thanks for your reply.

I do not have any broker and I am quoting these rates from what I am seeing in the app.

As this is the first time the my Fixed mortgage is coming to an end so it confused and asking questions again.

A thing coming in mind that if I go to the broker and even after searching whole of the market , he gives the same rate for 5 year fix i.e 3.89% plus £999 fee  and on top I have to pay his fee/charges , then there is no benefit,

In my view going to the broker will work only if  he find a deal where the interest rate is lower than 3.89% and fees/ charges are taken into account.

amnblog

Say a Broker costs you £300 in Broker Fees.

For that:

You know for sure you are doing the best thing

You will be in control if rates change and not get caught on a higher rate

You can stop worrying as someone knowledgeable and experienced will be handling this for you