Mortgage decision

slhqoue

We're moving from our 5 year fix 1.78% mortgage to a new deal at the end of the month.

At the moment we've locked in a 4.93% 2 year fix. 

I've seen the interest rate news today.

Do you think better deals will become available by the 31st Feb? Given the economic climate, do you think it would be sensible to fix for 5 years?

Any thoughts appreciated.

ACG

Who is your lender. Most will have a cut off point earlier than the last day of the month. 

Mortgage rates not really linked to the base rate. They are broadly in line with it but rates have been fluctuating by 0.25% for the last 6 months or so with no changes in the base rate. 

Find out when the cut off point is and keep an eye on the products your lender offers. 

moneytorques

The best 2 year fixed as of today looks like 4.23% with First Direct on a max 60% loan to value.

Mortgages are a very personal thing and if youve uncertainty niggling away Id suggest taking some broker advice if you've not already done so.
There is obviously a chance rates will change based off todays 0.25% BoE base cut, how much if any who knows.

Mark_d

I'm in a similar position.  My 5 year fix (1.49%) is coming to an end shortly and today I've applied for a two year fix at 4.36%.

The economic climate is very volatile at the moment.  I'm not expecting any significant changes in mortgage interest rates in the next few months, even if the bank base rates fall another 0.25% - this is just my opinion.

Personally I would only go for a 5 year fix if the rate was low.  Above 4% I would only consider 2 year deals.

Edi81

31st feb? Last I looked it had 28 days!

Mortgage pricing takes into account expected rate changes. You could wait and see. 

housebuyer7

Who did you go with @Mark_d? And what LTV?

Mark_d

@housebuyer7 I'm going with Halifax. The rate was based on 50% LTV.  Hopefully there are no issues when Halifax do their valuation.

TheBanker

Mark_d said:

I'm in a similar position.  My 5 year fix (1.49%) is coming to an end shortly and today I've applied for a two year fix at 4.36%.

The economic climate is very volatile at the moment.  I'm not expecting any significant changes in mortgage interest rates in the next few months, even if the bank base rates fall another 0.25% - this is just my opinion.

Personally I would only go for a 5 year fix if the rate was low.  Above 4% I would only consider 2 year deals.

Very similar here but I've gone for a three year fix at 4.27%. I'll keep an eye on rates between now and May (when my current fix ends) but I am not expecting to see any real difference. 

BikingBud

Mark_d said:

@housebuyer7 I'm going with Halifax. The rate was based on 50% LTV.  Hopefully there are no issues when Halifax do their valuation.

Do you have any aspiration of overpaying the mortgage?

Are you fully aware and content with how Halifax manage overpayments?

I would explore all aspects and ensure you are entirely comfortable with recalculation of payments vice reduction in the term.