Remortgage after fixed rate

indianqueen

Our fixed rate expires on the 2/7/24 smack bang in the middle of interest rates being potentially cut either in June or August. Any advice on what you would do? Is it best to just stay on the current lenders Standard Rate for a month or so (no idea how much this would end up costing us longer term)? Any advice appreciated. Feels like a bit of a dilemma! 

CliveOfIndia

Depends how confident you are that an interest rate cut will actually happen (unfortunately none of us have a crystal ball !).

But if you're of the opinion that a cut is more likely than not, then I'd stick with their SVR for a couple months.  That then gives the option of shopping around at a later date with hopefully no exit penalties.  Do check the T&Cs of your particular mortgage carefully, but usually you're only subject to an early redemption penalty if you're on a fixed/capped/discounted rate deal.

la531983

Predicted interest rates cuts will already be priced into rates available now.

silvercar

Welcome to the forum. I will ask the forum team to move this to the mortgage board.

indianqueen

CliveOfIndia said:

Depends how confident you are that an interest rate cut will actually happen (unfortunately none of us have a crystal ball !).

But if you're of the opinion that a cut is more likely than not, then I'd stick with their SVR for a couple months.  That then gives the option of shopping around at a later date with hopefully no exit penalties.  Do check the T&Cs of your particular mortgage carefully, but usually you're only subject to an early redemption penalty if you're on a fixed/capped/discounted rate deal.

Thank you. Not as confident this afternoon to be honest! Just feels like we're going to be right in the middle of a potential change. Might just stick with the SVR for a few months to see what happens. And good point to check our T&C's. Thank you ! 

indianqueen

la531983 said:

Predicted interest rates cuts will already be priced into rates available now.

Oh really? 

indianqueen

silvercar said:

Welcome to the forum. I will ask the forum team to move this to the mortgage board.

Thank you! I did try to find the mortgage board but too new I think! Unsure how this all works yet! Appreciate it 🙂

housebuyer143

indianqueen said:

la531983 said:

Predicted interest rates cuts will already be priced into rates available now.

Oh really? 

Lenders base their rates on swap rates which change every single day and are very complex and designed to take into account the rates now, and where they think they will go in the future.

Unless something really unexpected happens then they should stay stable or just fluctuate up and down a little. I wouldn't expect them to reduce if the base rate reduces because they have likely already factored in a drop if that's how the market has been looking.

penners324

It's not worth it. 
Any cut will be .25% (from 5.25 to 5) at best.

You'd pay far more interest in a couple of mo than on SVR than You'd save in 2 or 5 years on a deal 0.25% less than what you're offered now

la531983

indianqueen said:

la531983 said:

Predicted interest rates cuts will already be priced into rates available now.

Oh really? 

Yes, really.