Remortgage advice

[tbrick18]

My current mortgage deal comes to an end in  October.
My broker has given me prices for a new 2yr or 5yr deal. Needless to say my payments are going up substantially.
With rates likely to go up again this week, would the advice be to lock in a deal now for when my current deal comes to an end?
Or wait it out to see if rates come down before then?
From what I've read it seems rates could peak by the end of this year and possibly fall back by the end of 2025.
So I'm thinking go for a 2yr now and hope rates come down.

Thoughts and advice welcome.

[David McKeown]

Similar situation but for reasons my change options are very limited thinking of taking a tracker now in the hope it plateaus at or below the current fixed rate and then falls over the rest of the two year period.

[tbrick18]

I hadn't actually considered trackers.
I must get some pricing to see what the difference would be.

[marty34]

Interest rates will probably go up 0.25% this week, a very outside chance it could be 0.5%.

Tough times ahead. Uk owe 2.5 trillion and rate they have to pay is going up every day.

House prices could take a serious hit.

[LC]

My current mortgage deal comes to an end in  October.
My broker has given me prices for a new 2yr or 5yr deal. Needless to say my payments are going up substantially.
With rates likely to go up again this week, would the advice be to lock in a deal now for when my current deal comes to an end?
Or wait it out to see if rates come down before then?
From what I've read it seems rates could peak by the end of this year and possibly fall back by the end of 2025.
So I'm thinking go for a 2yr now and hope rates come down.

Thoughts and advice welcome.

Go for the 2 year, was in a similar position back in early 2008 and went for the 5 year.  Next thing BoE cut the shite out of interest rates to mitigate impact of recession so was paying through the nose for the majority of the 5 years. 

[Milltown Row2]

We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.

How are first timers going to afford a mortgage these days

[armaghniac]

We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.

How are first timers going to afford a mortgage these days

First timers at least might at least get a cheaper house, but someone who bought last year and did not fix for a decent period will find it a big increase.

[LC]

We've been lucky 2 more years left on 5 year fixed. Hoping things drop back come 2025.

How are first timers going to afford a mortgage these days

First timers at least might at least get a cheaper house, but someone who bought last year and did not fix for a decent period will find it a big increase.

Agree, if you have not bought you will be ok as you will be in a position to take advantage of falling prices.  Those who bought at with possibly a 10% but definitely a 5% deposit are in a for big shock at the end of their 2 years.  Re those 5% deposit they are going to be stuck with their current lender as well as they will have not enough equity to move to another lender.

[Milltown Row2]

House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?

[square_ball]

House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?

With a 10% deposit you'd be looking at around £975 per month. The same terms 2 years ago would have been around £750 or less depending on what you could get from the lenders.

[Milltown Row2]

House prices might be falling but they are falling from a high! So not so sure that they are actually that cheap, £172,000 for the average house in NI, from £173,000 at the start of the year... How much would a monthly payment for that be over 25 years at the current rate?

With a 10% deposit you'd be looking at around £975 per month. The same terms 2 years ago would have been around £750 or less depending on what you could get from the lenders.

With electric, gas/oil, food, cars, children, phones/broadband, as basics leaves it really difficult to find for extras, nights out, eating out, holidays, savings..

That's providing they have no loans/credit card payments and whatever else I've left out..

Tough on young people/families

[square_ball]

Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.

It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.

[Sportacus]

Inflation holds for another month.  The BoE interest rate policy isn't working, which is hardly a surprise given that the cause of inflation is pay rises, commodity prices, energy costs & Brexit.  Punishing mortgage holders is nuts.  Someone somewhere is making a lot of money at the expense of the masses.  Same old.

[tbrick18]

Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.

It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.

I've instructed my broker to try to lock in the 2yr fixed rate he quoted me for last week. If it's still available I'll be jumping from 1.62% to 4.9%. That's just over 3 times the interest rate.
I see some calls to raise the BOE base rate to 5% tomorrow. I'm just hoping I can still get the 4.9.

The vast majority of us, I think, are on fixed incomes. With the cost of living rises and mortgage increases, how are people meant to survive?
Outgoings in my house on things like groceries, have more than doubled in a year. This is going to be another sizeable chunk going out.

The only people the increased interest rate serve are those 5% really high earners.
The rest of us suffer.

[Muck Savage]

Yeah it's one thing saving up the deposit for a house never mind what comes along with it once you do get the house.

It's a tough choice tbrick18 I'd maybe be leaning towards the 2 year as there may be some kind of government intervention. Maybe Labour will promise to do something in the next general election.

I've instructed my broker to try to lock in the 2yr fixed rate he quoted me for last week. If it's still available I'll be jumping from 1.62% to 4.9%. That's just over 3 times the interest rate.
I see some calls to raise the BOE base rate to 5% tomorrow. I'm just hoping I can still get the 4.9.

The vast majority of us, I think, are on fixed incomes. With the cost of living rises and mortgage increases, how are people meant to survive?
Outgoings in my house on things like groceries, have more than doubled in a year. This is going to be another sizeable chunk going out.

The only people the increased interest rate serve are those 5% really high earners.
The rest of us suffer.

How are the interest rate hikes serving the high earners?