Mortgages - Help!

[trueblue1234]

Many banks will really screw you if you decide to sell before the end of the fixed term, so that's the big thing to think about if fixing long term. Otherwise it would seem sensible to fix now if you can get a good rate.

In my mortgage getting days, I fixed half of it and variable for the other half, so whatever happened to interest rates I was always half right and half wrong! I also liked to have the option of using some of my bonus to make an extra payment on the mortgage - which you can do with a variable but not with a fixed.

We've been in fixed mortgages and was always allowed to pay off up to 10% in a single year. We had a few tough years trying to do it, but the difference it makes is unreal!!

[Kidder81]

Yeah you can overpay up to 10% of your outstanding balance in a year

[RedHand88]

Whatis the % interest rate on the variable at the minute?

I'll get back to you later this evening with my thoughts. I'm in the exact same boat as yourself.

[screenexile]

Whatis the % interest rate on the variable at the minute?

I'll get back to you later this evening with my thoughts. I'm in the exact same boat as yourself.

SVR with Santander is currently 4.91% rising to 5.99% in September

BOI is 5.24%

HSBC 4.54% currently not sure about September

Found this online not sure it'll help nobody really knows what way it'll go I'm just glad I'm tied in for another 3 years so I don't have to think about it!

The bottom line
Analysts forecast that the BoE will continue to hike rates at least until December this year to cool expected rising inflation before taking a pause as high interest rates start to affect economic growth rate.

The BoE estimated the interest rate to peak at 3% in the third quarter 2023 before cutting it to 2.5% and 2.2% in the third quarter of 2024 and 2025, respectively.

Remember that analysts' predictions can be wrong. You should always conduct your own due diligence before trading. And never invest or trade money you cannot afford to lose.

[LeoMc]

Decisions!!

Looking at my mortgage here on the back of a self build in the North.

I did not take the full amount the bank offered me but have plenty of work to do outside the house. So I am still able to take 30k without going about the 60% ATV.

If I took the 30k extra on the discounted variable rate monthly payments are
£752 on a 2 year variable

If I went down the fixed route plus still taking 30k payments are
£916 for a 2 year fixed
Or
£961 for a 5 year fixed

To not take anything further on a 2 year fixed is £775 per month.

How much is the interest rate due to rise? I'd be happy with the 752 on the variable rate at the minute but worried in case that would rise a lot over the next while.

Anyone any advice? Be greatly appreciated.

It's obv subjective and unpredictable - just interested to hear people's thoughts rather than coming on here to make my final decision.

Are there no online calculators that would show you what a .25%, a .5% and a .75% increase would do to your £752?  I can't imagine the first 2 would bring you anywhere near the £961 a fixed deal would cost you.

[seafoid]

If you look at estimates of gas prices in  Q1 and Q2 they were way off.
Inflation won't be fixed until interest rates are greater than inflation.
That won't be at 3%

[RedHand88]

1-1.5% of a rise by end of 2023 has been proved into the market, which would take you to £850-900.

Some are predicting 2-2.5% of an increase though,  which would take you past your fixed rate price.
https://www.google.com/amp/s/amp.theguardian.com/business/2022/aug/23/bank-of-england-may-be-forced-to-raise-interest-rates-to-4-per-cent-2023-inflation
However, you would like to think it will only be at that level for a while before coming down.

Personally, I'm someone who likes consistency and stability and likes to know what I'll be paying each month for the next 2 or 5 years. However, the money that can be saved on variable, especially early on in the term if taken out now, is tempting.

[tbrick18]

Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?

[markl121]

Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?

Mine was up this year and took a five year at 2.04%. very glad to have done it now. Are you able to renegotiate with a year left?

[redzone]

Moneysavingexpert.com has a good online calculator for morgage repayments

[bennydorano]

I've had fixed rates all my mortgage life, current 3 year one ending in January and i cant go early without penalties, such shite timing. From things I've been reading rates will be going up to next Summer and coming down again after that, but like the petrol on the forecourt it takes rate reductions longer to kick in than increases. I'll be looking a 2 year deal.

[Tubberman]

I've had fixed rates all my mortgage life, current 3 year one ending in January and i cant go early without penalties, such shite timing. From things I've been reading rates will be going up to next Summer and coming down again after that, but like the petrol on the forecourt it takes rate reductions longer to kick in than increases. I'll be looking a 2 year deal.

check with bank what the penalty would be - might not be much at all

[quit yo jibbajabba]

Given the recent interest rate rise, and seemingly another emergency rate increase by BoE looming, is it time to start looking at re-mortgaging even if tied into a fixed rate deal?

Where do we think the interest rate is going to land in 1/2/3 years from now?

There's a real risk, I think, of coming out of a fixed deal and suddenly having a mortgage payment increase by hundreds a month.

I personally fixed my mortgage for 2 years and am about a year into it.
Any mortgage advisors on here? What would the advice be right now?

Check what the penalty is, with a year to go hopefully 1% of the outstanding amount. Ask them what rates are on offer then go do your sums/see what hit yer prepared to take.
Crazy times....really hard to know where it will end

[seafoid]

Rates could go to 10% before coming back to where they were before.

[toby47]

Some people going to be seriously crushed coming out of fixed term mortgages in the next year or so.