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    • Liam21
    • By Liam21 9th Feb 18, 10:07 AM
    • 14Posts
    • 0Thanks
    Daft remortgaging question
    • #1
    • 9th Feb 18, 10:07 AM
    Daft remortgaging question 9th Feb 18 at 10:07 AM
    It's the first time I've ever had to remortgage so please bear with me....

    My 2 yr fixed rate mortgage on my flat is coming to an end - my bank has given me two offers; another 2 yr fixed rate which will cost about £25 less per month; or a 5yr fixed rate which will cost about £50 more per month.

    I know mortgage rates are expected to rise so there is a certain logic in fixing for longer; but its only complicated by the fact that within the next 2 years my partner and I are likely to buy somewhere bigger together (selling the current flat). I have checked with the bank and the mortgage is 'portable' to the new property.

    So as I see it my options are...

    1. Go for the 2 year deal: benefits are slightly more money in my pocket each month and flexibility of shopping round for a new deal when we do buy together; downside is rates are likely to be higher by then

    2. Go for the 5 year deal: benefits are keeping the current rate on a chunk of our mortgage on a new place (which i'm presuming will be cheaper than anything available then); downside is slightly more expenditure each month and tied into the same lender.

    Any thoughts?
Page 1
    • getmore4less
    • By getmore4less 9th Feb 18, 11:26 AM
    • 32,035 Posts
    • 19,222 Thanks
    • #2
    • 9th Feb 18, 11:26 AM
    • #2
    • 9th Feb 18, 11:26 AM
    you need to give some numbers the £pm is useless for comparing

    Key things will be things like the level of borrowing, LTVs and the rates on offer now and possibly in 2 years.

    if really worried about rate rises why not move now and secure those low rates on all the money rather than just a bit of it?
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