Need Advice: Renew Now at 4.18% or Wait for Possible BoE Rate Cut?

rigby44

Hi all,

I’m renewing my mortgage with NatWest and really want to avoid their 6.99% follow-on rate on 1/1. They’re currently offering me a 4.18% 2-year fixed, but with the BoE meeting on 18/12, I’m wondering if it’s worth waiting in case rates drop.

My concern is whether waiting until after 18/12 would leave enough time for NatWest to update their rates and process my new deal before 1/1.

Questions:

1. Has anyone dealt with NatWest around a BoE rate change — how quickly do they update fixed rates?
2. Is it risky to wait, or should I just lock in the 4.18% now to avoid falling onto 6.99%?
3. Any tips for making sure the new fixed rate is applied before the 1/1 payment?

Thanks for any advice!

P.S. I’m hoping to move house within the next two years and would port the mortgage. Would choosing a 2-year fix result in fewer fees or penalties than taking a 5-year fix, even if it’s ported?

ACG

Rates are dropping now in preparation for the expected rate reduction. 
Lenders normally alter their rates in the weeks leading up to the base rate announcement as they typically know what will happen. 

Might be worth holding fire a little longer, but not until the 18th. Its cutting it a bit fine with christmas/new year. 

strawb_shortcake

With Christmas in the middle it might be a little close. I've just renewed with Santander and changed the deal 3 times in a week as the rates had fallen slightly, but saves me £3 a month. 

Does Natwest not give you the option to take a better deal if it comes up? 

rigby44

strawb_shortcake said:

With Christmas in the middle it might be a little close. I've just renewed with Santander and changed the deal 3 times in a week as the rates had fallen slightly, but saves me £3 a month. 

Does Natwest not give you the option to take a better deal if it comes up? 

It appears to just be letting me choose a new deal online, between 2YF, 5YF or 2YT. Doesnt appear to be any requirement for proof of income etc.

MyRealNameToo

rigby44 said:
I’m renewing my mortgage with NatWest and really want to avoid their 6.99% follow-on rate on 1/1. They’re currently offering me a 4.18% 2-year fixed, but with the BoE meeting on 18/12, I’m wondering if it’s worth waiting in case rates drop.

My concern is whether waiting until after 18/12 would leave enough time for NatWest to update their rates and process my new deal before 1/1.

Questions:

1. Has anyone dealt with NatWest around a BoE rate change — how quickly do they update fixed rates?
2. Is it risky to wait, or should I just lock in the 4.18% now to avoid falling onto 6.99%?
3. Any tips for making sure the new fixed rate is applied before the 1/1 payment?

Thanks for any advice!

P.S. I’m hoping to move house within the next two years and would port the mortgage. Would choosing a 2-year fix result in fewer fees or penalties than taking a 5-year fix, even if it’s ported?

Like most things, stuff is done on speculation, things only change after if the speculation is subsequently proven to be very wrong but the BoE role is to create stability so doing something wild that no one has predicted is fairly unlikely 

rigby44

MyRealNameToo said:

rigby44 said:
I’m renewing my mortgage with NatWest and really want to avoid their 6.99% follow-on rate on 1/1. They’re currently offering me a 4.18% 2-year fixed, but with the BoE meeting on 18/12, I’m wondering if it’s worth waiting in case rates drop.

My concern is whether waiting until after 18/12 would leave enough time for NatWest to update their rates and process my new deal before 1/1.

Questions:

1. Has anyone dealt with NatWest around a BoE rate change — how quickly do they update fixed rates?
2. Is it risky to wait, or should I just lock in the 4.18% now to avoid falling onto 6.99%?
3. Any tips for making sure the new fixed rate is applied before the 1/1 payment?

Thanks for any advice!

P.S. I’m hoping to move house within the next two years and would port the mortgage. Would choosing a 2-year fix result in fewer fees or penalties than taking a 5-year fix, even if it’s ported?

Like most things, stuff is done on speculation, things only change after if the speculation is subsequently proven to be very wrong but the BoE role is to create stability so doing something wild that no one has predicted is fairly unlikely 

I think most people envisage it’s going to 3.75% on 18/12?

rigby44

ACG said:

Rates are dropping now in preparation for the expected rate reduction. 
Lenders normally alter their rates in the weeks leading up to the base rate announcement as they typically know what will happen. 

Might be worth holding fire a little longer, but not until the 18th. Its cutting it a bit fine with christmas/new year. 

Thanks, could I be cheeky and ask for a word of comment on the 2Y vs 5Y if hoping to move in the next 2yrs but also porting?

ACG

rigby44 said:

ACG said:

Rates are dropping now in preparation for the expected rate reduction. 
Lenders normally alter their rates in the weeks leading up to the base rate announcement as they typically know what will happen. 

Might be worth holding fire a little longer, but not until the 18th. Its cutting it a bit fine with christmas/new year. 

Thanks, could I be cheeky and ask for a word of comment on the 2Y vs 5Y if hoping to move in the next 2yrs but also porting?

If you do a 5 year and Natwest decline you or the property, you either wont be able to move or will have to pay the ERC. So might be worth considering that when deciding which is the best option. But I cant really say much more than that as it might be deemed as advice and I dont want to be held liable for anything. 

If you had a broker, have a chat with them. Most will do the PT without charging I think and then you can talk the options through. 

born_again

Lets not forget any effect Wed 26 November, may have on interest rates.... Who knows what will happen 🤷‍♀️