How long are we extending for?
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andypa1
Posts: 42 Forumite
Hi all,
I'm having a real headache at the moment, having predicted correctly and had a variable rate for the last two years, getting in just before the last drops I'm now ready to remortgage and the world is a very different place.
I'm going for fixed this time, and hoping to lock in before the predicted August rate change by the bank of england.
I know it's impossible to predict, including the potential fall out of brexit (if it happens), but how long term is everyone fixing? 3 years, 5, 10!?
Cheers,
Andy
I'm having a real headache at the moment, having predicted correctly and had a variable rate for the last two years, getting in just before the last drops I'm now ready to remortgage and the world is a very different place.
I'm going for fixed this time, and hoping to lock in before the predicted August rate change by the bank of england.
I know it's impossible to predict, including the potential fall out of brexit (if it happens), but how long term is everyone fixing? 3 years, 5, 10!?
Cheers,
Andy
0
Comments
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Any August (or near future) rate rise has already been priced-in to new mortgage products available today.
Lenders don't pull/launch products in response to a base rate change. That has already happened due to market sentiment.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I get the impression rates might not rise in August.
At the last review, lenders seemed almost 100% certain the base rate would go up and were increasing their rates about a month ahead of time. They then dropped them down a little, I have not really seen rates going back up.
I suppose the point I am making is that lenders typically make their move well ahead of the actual change being announced.
Anyway, 2 and 5 year fixed rates appear to be more or less the same at the minute. Why not compare the 2, 3, 5 and 10 year fixed rates and go from there.
Do you plan on moving within a certain period? If so, maybe take that in to account. Are there any other life events that might impact whether you stay or move or make overpayments/want a payment holiday etc?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
thanks for your helpful replies.
Yes, we're likely to move in 2 to 3 years, but Nationwide say we can just keep the existing rate and apply it to the bigger mortgage to avoid paying an early repayment.
Think I'm going on 3 year, but it's all just guesswork really isn't it, who knows what will happen with brexit etc.0 -
You "can" move the mortgage, but if you do not fit their criteria/affordability/credit profile at the time you would have to pay an ERC to leave the deal. There is also no guarantee their deals would be competitive at that time.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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