Hopefully debt free before Mortgage renewal in June 2026

Tezzadp

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Tezzadp

My 3 favourite ones so far this year. Great colours. I love Butterflies 🦋🫶🏼

Tezzadp

I have just made my NEW daily £10.00 deposit into my investment pie. Total Invested so far this month = £30.00

Total invested Overall = £890.00

If you are interested in investing, you can get free shares up to £100 if you open a Trading212 account with this link > https://www.trading212.com/invite/FMcH7elU

You can take a look at my Trading212 investment pie in more detail here > https://www.trading212.com/pies/ltzw4Wew651jgq4oGrepyrZJB4TgC

Tezzadp

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Tezzadp

I have just made my NEW daily £10.00 deposit into my investment pie. Total Invested so far this month = £40.00

Total invested Overall = £900.00

If you are interested in investing, you can get free shares up to £100 if you open a Trading212 account with this link > https://www.trading212.com/invite/FMcH7elU

You can take a look at my Trading212 investment pie in more detail here > https://www.trading212.com/pies/ltzw4Wew651jgq4oGrepyrZJB4TgC

Tezzadp

Another one of my favourites so far ….. 🫶🏼

vampirotoothus

Hi Tezza, good to see that savings still going on. See you can do it!
Have you checked to see what mortgage deals are already available to you? You may already be able to choose what deal you will move to. V x

Tezzadp

I have just made my NEW daily £10.00 deposit into my investment pie. Total Invested so far this month = £50.00

Total invested Overall = £910.00

If you are interested in investing, you can get free shares up to £100 if you open a Trading212 account with this link > https://www.trading212.com/invite/FMcH7elU

You can take a look at my Trading212 investment pie in more detail here > https://www.trading212.com/pies/ltzw4Wew651jgq4oGrepyrZJB4TgC

Tezzadp

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Tezzadp

https://forums.moneysavingexpert.com/discussion/comment/81910121#Comment_81910121

Thank you.

Yes i have been waiting to see what my mortgage renewal offers were for a while and they were available on 1st March as that is exactly 4 months before my renewal date which is the max time Natwest let you renew from. I had a look at them on Sunday 1st when they first came out and i thought they were a little high compared to what i was seeing on the MSE best mortgage deals for Natwest. So i decided to wait a little while as i knew that the Bank of England interest base rate decision on 19th March was in big favour (roughly 80% chance) of being cut again by another quarter of a percent (0.25%) from 3.75% down to 3.5% which would have hopefully brought my renewal offers down a few percentage points.But then the war broke out in the Middle East and now its looking like interest rates will be held at 3.75% on 19th of March and they could even rise this year if the war persists and pushes inflation up with the rise in costs of oil, gas and food supplies around the world. It all depends how long the war lasts and what impact it has on inflation here in the UK.

So, im in 2 minds whether to go with one of the offers i have been given now before the banks start to increase the interest rates on mortgages in light of future outlooks surrounding the war. I think i am right in saying if i lock in a deal now, i dont have to take that deal when it comes to the time of my renewal if a better offer becomes available? Maybe there is a fee to pay for cancelling the renewal if i do? it is something i will have to look more into before i go ahead with accepting an offer for sure. Below are my current mortgage payments and the 8 offers i have had from Natwest :

They are basically 2 year fixed, 2 year tracker and 5 year fixed all with £0, £995 and £1495 fee options with different interest rates attached to each one obviously.

Currently im leaning towards ones with £0 fee, as yes in the LONG TERM the ones with the higher fees but lower percentage on the mortgage mean you pay less "over the full term" of the mortgage. But take for example the 5 year fixed £0 fee at 4.02% (mortgage 1) and compare it with the 5 year fixed £1495 fee at 3.85% (mortgage 2) using the MSE rate comparison calculator https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates/ (see pic below) it takes 18 YEARS to roughly get to the same figure on the higher interest mortgage without a fee as it does on a lower rate mortgage with the fee added to my mortgage. And considering this is a 5 year fix option, then after 5 years i will have to renew and possibly add another renewal fee to my mortgage again in 5 years time which means it will take even longer to pay back.

Even comparing the £0 fee 2 year fixed to the £1495 2 year fixed (see below) it takes between 9 and 10 years to pay back the fee before the advantage of the lower interest rate kicks in.

I think the ones with the higher fees are good if you have a lot of spare cash and can afford to pay it upfront and not add it on to cost of your mortgage. But for someone like me who cant afford to pay large sums upfront just to save a few percentage points over a relative short period of time (2 or 5 years) in comparison to the mortgage. Also i think if you are going to have to renew in 2 or 5 years time anyway then paying a fee isnt worth it as you will end up paying a different interest rate in 2 or 5 years time anyway and have the same choice of whether to pay a fee again or not, and if you do decide to pay another fee you will forever be paying fees, whereas the money spent on fees could be spent on overpaying the mortgage thus saving money in the long term anyway.Im leaning more towards the 2 year fixed at 4.01% with £0 fee with repayments of £668.46 compared to my current mortgage of £517.72 which is £150.74 more per month than i currently pay. My reasoning why im drawn to a 2 year and not 5 is i think that in 2 years time interest rates will come down lower than they currently are at the minute. They may rise in the near future, for the rest of this year and maybe into next year, depending on how the war goes and how long it lasts etc but i really think it wont last that long and interest rates will come down by the time the 2 year fix comes to an end (June 2028). And then i could possibly take advantage of lower rates and renew on better terms and save money each month. Or do i go with the 5 year fix at roughly the same rate (4.02%) for stability and security? even though the extra £150 a month is a bit of a stretch it is affordable, but if i could benefit from a better rate after 2 years and i took a longer fix i would be left kicking myself as i would be on a higher rate for longer than needed, but i guess that is the risks you take. There isn't a massive difference in how much you pay or save over the life of the fixed term periods of either the 2 or 5 years, they all are roughly around the same over their respective terms.

I'm keeping my eyes very closely on the war and the effect it has on inflation and ultimately interest rates and i check my offers each day to see if they have change and it will be interesting to see what happens between now and my renewal date in a few months time. As if i don't renew and do nothing then i will go onto the Standard Variable rate which is currently around 6.74% which means my monthly payments would be £871. Which is a lot more than i currently pay and would be a BIG stretch to afford each month. So i need to keep my eyes on this and select an offer before my renewal date.

Let me know what you would do in my situation or you have any ideas or advice, im always happy to read other peoples views and opinions.