Hopefully debt free before Mortgage renewal in June 2026

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81937672#Comment_81937672

it didn’t occur to me that the war would impact renewal rates so unfortunately I was not so lucky and just had my focus on the Bank of England expected base rate drop mid March. Such a shame. About £50 a month that cost me. :/

Tezzadp

https://forums.moneysavingexpert.com/discussion/comment/81937705#Comment_81937705

Sorry about that Arty 😕 The impact the war has on inflation effects the future outlook of the bank rate decisions, banks often look ahead of the immediate BoE decision and focus on a longer term period (using Swap prices) and unfortunately now that future sees 2 or more rate increases this year from the Bank of England, depending on how the war plays out and how long the effects of the war have on our economy here in the UK.

It could all change again in a few months, nobody knows. But I can't realistically see rates dropping towards the 3% mark in the next couple of years at least, so my 4.02% rate shouldn't be too high above the lowest rates available in the next 5 years.

Hopefully rates will come down for you before you renew Arty 🤞🏼

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81937725#Comment_81937725

I already fixed at 4.21% for five years last week when I got the MSE newsletter saying that rates are likely to increase over the rest of the year and explaining about the war. What a godsend because they did then go up again after I’d fixed! It’s about £180 a month more than I’m paying now but at least I can budget and know what it is going to be for another 5y

Tricky to know what to do - I was coming off a 1.7% fix so it has been painful.

ArtyJ931

I had run out of time to wait and see and no way could afford to go into my bank variable rate 😬

Cara_

I hope the company takes note of the letters of disagreement to the change to the hours you work and decides to keep your hours as they.

Tezzadp

https://forums.moneysavingexpert.com/discussion/comment/81937734#Comment_81937734

4.21% isn't too bad, glad you managed to fix it before it increased even more.

I am in almost exactly the same situation, im coming off a 5 year fix at 1.63% and my increase is about £152 more a month. It also close to my budget limits, but like you at least with it fixed I can budget around it with no nasty surprises.

Tezzadp

Thank you ❤️ I will keep you all updated of the outcome 🤞🏼

Tezzadp

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Tezzadp

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Tezzadp

Interest rates on my renewal quotes have risen again, twice in 2 days.

Rates on a 5 year fix are now lower than a 2 year fix, which says to me that banks predict that the effects of the war could effect interest rates for longer than previously expected. And the longer the war goes on the greater the chance of that actually happening.

A 2 year no fee fix is now 4.88% and a 5 year no fee fix is now 4.84%.

My fix at 4.02% around 3 weeks ago is now 0.82 points below the current off. That is quite a big difference in a short period of time.