Fixed Rate ending - how long can I leave it to remortgage, without moving to SVR

scotslad1983

Hello, forgive me, I have searched, but to no avail. Although I am sure somebody will have asked!

My cushty 1.93% interest fix ends on 31st January, which is also my payment date.

I can remortgage with same company (RBS) for a competitive rate, looking to do so for five years.  

Assuming my payment stays the same for 31st January, do I have to fix on 31st Jan/1st Feb to not pay the 7.74%?  

If I wait until the 8th Feb announcement, and base rate is reduced, and RBS fix starts to follows suit, can I fix on 9th Feb/16th Feb/23rd Feb before my 28th February payment?  Or will the 28th February payment be at the 7.74% rate if I fix mid-month?

Many thanks

MattMattMattUK

scotslad1983 said:

Hello, forgive me, I have searched, but to no avail. Although I am sure somebody will have asked!

My cushty 1.93% interest fix ends on 31st January, which is also my payment date.

I can remortgage with same company (RBS) for a competitive rate, looking to do so for five years.  

Assuming my payment stays the same for 31st January, do I have to fix on 31st Jan/1st Feb to not pay the 7.74%?  

If I wait until the 8th Feb announcement, and base rate is reduced, and RBS fix starts to follows suit, can I fix on 9th Feb/16th Feb/23rd Feb before my 28th February payment?  Or will the 28th February payment be at the 7.74% rate if I fix mid-month?

Many thanks

Mortgage interest is calculated daily, the higher rate will apply from 1st Feb until you sign a new fix, the end of Feb payment would be pro-rata across both rates.

If thr BoE reduce rates in Feb, and that is looking less likely by the day, then the banks will take a week or so to release new mortgage products, you would then have to apply and it would need to be processed, it could be the end of Feb before it is all sorted. One month on the higher rate does not really matter, but equally I think it is pretty unlikely to result in a better deal, others may take a different view.

Edi81

Banks don’t price mortgages on base rate. They use market swap rates. You are taking a gamble. 

penners324

The last time the BoE reduced the interest rate, most mortgage rates in the market, went up.

Definitely a gamble to wait like that