Time to remortgage - long or short term fixed?

[Numbers]

Might be a basic question, but our 2 year fixed is up shortly so we're going to tie into another deal.

Sadly we're jumping from just over 1.5% to at least 3.5% whether or not we stay where we are (Natwest) or move. We'll obvs have a good look to see what deals are out there but it doesn't look good.

May I ask - with how much of a shit show it is at the minute would you go for a 2 or 5 year fixed?

 

[platinumsage]

Depends what the 5-year rate is compared to the 2-year rate, are the 5-year payments easily affordable for you, and what is the early repayment charge?

 

[Numbers]

There isn't a huge difference (maybe .2 or so) between rates.
Not a prob' re: affordability and not worried about early repayment charge at the moment.

Just wondering how much worse it may look in 2 years time, we've only ever done 2 year fixed in the past.

 

[Artaxerxes]

Long term, it’s going to be a rough few years

 

[platinumsage]

There isn't a huge difference (may .2 or so) between rates.
Not a prob' re: affordability and not worried about early repayment charge at the moment.

Just wondering how much worse it may look in 2 years time, we've only ever done 2 year fixed in the past.

No one knows.

If the 5-year is affordable, and its ERC is manageable should you want a swift exit (due to moving or rates plummeting), then there's no reason not to go for it?

 

[story]

Do you have a broker?

All the best deals I’ve ever had were always through a broker.

I have the good fortune to be friends with someone who is genuinely interested in mortgages so I’ve never had to find a decent broker.

But iin the absence of such a unicorn, ask around your friends to see if any of them knows a good broker.

 

[maomao]

I've just done ten years at 3.19% because it's only a fraction more than we originally got our mortgage at and we seem to be heading into a period of inflation and high interest rates. I know we can afford the payments so gambling on whether I might be able to knock 50 quid off it in five years seems reckless when it could equally be higher.

 

[Numbers]

No one knows.

If the 5-year is affordable, and its ERC is manageable should you want a swift exit (due to moving or rates plummeting), then there's no reason not to go for it?

We are looking to move within a cpl of years but our current provider allows us to port our mortgage.

 

[maomao]

Also I'm extremely lucky as our financial situation has changed massively and noone would give us a mortgage (at all) now. I thought we'd be stuck on srv but I spoke to a financial advisor who told me that if I remortgaged through Nationwide ( who the mortgage was with originally) online and paid the fees up front there'd be no checks. I didn't pay the guy a penny and he seems to have saved the roof over our heads.

 

[Artaxerxes]

I’m still pissed my mortgage offer from spring expired a few weeks ago. Bumped me up to 3.78 interest rate as a result.

 

[Numbers]

We want to sort something in the next few days/week Incase of further hikes

 

[platinumsage]

We want to sort something in the next few days/week Incase of further hikes

I'd do it asap if I were you - that means switching on to a new deal with your current lender rather than faffing about with a remortgage or a broker.

edit: tonight if you can!

 

[BigTom]

Like someone else says, nobody knows. I've just fixed for 5 years a few months ago. Likelyhood is that interest rates will keep rising over the next year and who knows if or when they will come back down.

Personally assuming you can afford the 5 year fix, I would go for that, I think it's much less of a risk than the 2 year. We've had historically low interest rates for the past 12 or 13 years so this is still a good deal even if it's above what you're leaving.

 

[hash tag]

I feel like rates are on the up especially as the country appears to be racing to a slump. American rates are also rising fast. I would fix for 5 years as opposed to 2 If I could get a decent rate sooner rather than later.

 

[kebabking]

I'd be tempted to jump onto whatever deal you can get in the next 48/72 hours - £ is tanking, and I think there's an economic and political crisis roaring down the road at us. PM & Chx seem spectacularly out of their depth, and uninterested, and the markets have had enough.

You may well end up losing money over the 5 year period - I am, after all, Urbans least capable futurologist - but what you'll gain is not lying in bed at 3am for the next 5 years wondering what your mortgage is going to cost tomorrow.

I am not sangiune about the next 2/3 years.

 

[Sue]

I am not sangiune about the next 2/3 years.

It does feel like we're going to hell in a handcart on all fronts right now.

 

[Numbers]

Cheers all.

We’ve opted for 5 years fixed at 3.69% with current provider - which is a bit of an ouch (more than +2%) considering what we were on. Thankfully we have the option to port if/when we do move.

Good luck to everyone.

 

[MickiQ]

Bank will 'not hesitate' to raise interest rates after pound's fall

The Bank of England will not hold an emergency meeting to set interest rates after the pound fell.

www.bbc.co.uk

According to this story mortgage lenders are already starting to pause offering mortgage deals whilst they (like everyone else) figure out what the fuck is going on.
The best bit is this though :-

But Lord David Frost, Conservative peer and former chief Brexit negotiator, said the reaction on global markets was "an overreaction".
"I don't think anything has gone wrong, actually, Liz Truss promised change, a different economic approach to get us back to growth and away from stagnation."
He said as part of this change in approach, interest rates would rise and the government would need to provide additional support via tax cuts and whilst it would need to reduce spending medium term, the details of that would come in November.

and may the Lord have mercy upon us all

 

[hash tag]

The recent economic changes must have been sketched out on a fag packet after a session in the pub. I would not ask kwartengs advice on anything financial.

 

[maomao]

We’ve opted for 5 years fixed at 3.69% with current provider - which is a bit of an ouch

On the plus side it's made me feel even smugger about the 3.19% I was whining about a couple of months ago.

 

[A380]

I used a broker local to me who really impressed me. PM me if you want their details…

 

[A380]

I'd be tempted to jump onto whatever deal you can get in the next 48/72 hours - £ is tanking, and I think there's an economic and political crisis roaring down the road at us. PM & Chx seem spectacularly out of their depth, and uninterested, and the markets have had enough.

You may well end up losing money over the 5 year period - I am, after all, Urbans least capable futurologist - but what you'll gain is not lying in bed at 3am for the next 5 years wondering what your mortgage is going to cost tomorrow.

I am not sangiune about the next 2/3 years.

Well, on the plus side, you will be in the last group of public sector workers to keep being paid. Even if final payments are made in corned beef and millet…

 

[hash tag]

Well, on the plus side, you will be in the last group of public sector workers to keep being paid. Even if final payments are made in corned beef and millet…

Please don't start me off on public sector pay. My work has become considerably worse, my pay actually less and people wonder why I complain occasionally and effectively work to rule. I refuse point blank to do overtime.

 

[Elpenor]

The markets are pricing in b of e rates of 5.5% in the near future so I hear.

 

[beesonthewhatnow]

I have 2 years left on my fixed rate. If I could click my fingers and fix it for another 5 or more I would without hesitation. The next few years are going to be an absolute horror show.

 

[bellaozzydog]

My mortgage is going up 50 quid a month at present

I really need to remortgage but the place is a bit fucking niche and I couldn’t get a normal mortgage on it when I bought it

 

[King Biscuit Time]

My mortgage is in two halves. One is good at 1.8 for another three years. But the other is due to run out next August and is at 2.2

I think I'm going to stump up the £1500 early repayment charge and get a five year fix at 3.8% tomorrow.

 

[bellaozzydog]

My mortgage is in two halves. One is good at 1.8 for another three years. But the other is due to run out next August and is at 2.2

I think I'm going to stump up the £1500 early repayment charge and get a five year fix at 3.8% tomorrow.

I’ve got a 4500 quid repayment charge

 

[gosub]

5 year fixed.
will give you time to acclimatize - US mortgages can get 20 year rates.....a lot of money sloshing about in US economy was people refinancing as rates went down

2 year...US Fed was talking about being at 4.6% mid 2023 only last week..


Real terms.... as Jon Stewart, pointed out when the US bickered over extending US deficit under Trump....after a month, a lot of US federal employees were food banking.


Tough times ahead! Globally. But the existing models, where computer says no! - Bullshiit.

 

[A380]

Please don't start me off on public sector pay. My work has become considerably worse, my pay actually less and people wonder why I complain occasionally and effectively work to rule. I refuse point blank to do overtime.

I know I got real term year on year pay-cuts for eight years. Still as long as they keep paying my public sector pension… however if my current house sale falls through I might have to go back from my career break.