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Remortgaging question

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We have £188k left on our mortgage over 23 years and are up for renewal next February. Our current 5 year fix is at a fantastic 1.76%.

Obviously we're in for a bit of a shock next February. Current deals for 5 year fixes seem to be around 4.25%.

However it seems that interest rates are slowly coming down? Would we be better moving only a variable mortgage for now and waiting to 'lock in' a better deal on a 5 year fix in the future?

Any advice - or directions towards reading to help me understanding the decision we'll need to make - appreciated.

Comments

  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    I think you'll be shocked by SVR's. Check what your lenders is. 

    Also they'll be an early repayment charge to exit. 
  • born_again
    born_again Posts: 20,363 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Wait till nearer Feb next year to look at the best way.
    Given that will give a far better read on where BoE are heading. One drop means nothing when autumn budget has yet to be announced.
    Life in the slow lane
  • Hold until February as situation will be clearer then and enjoy the lower rate for as long as possible 
  • Sncjw
    Sncjw Posts: 3,562 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I wouldn't change your deal now with your low rate. Wait nearer the time 
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment paused to pay off cc 

    Starting balance £66,565.45

    Current balance £58,108

    Cc around 8k. 

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