Mortgage Rate Rises

Is the consensus that 2 years fixed will result in better deals come 2 years time, rather than a 5 year fix. Fixing for 5 years now feels like a mistake if we're at/near peak.

Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
 
unwashed potato! said:
Is the consensus that 2 years fixed will result in better deals come 2 years time, rather than a 5 year fix. Fixing for 5 years now feels like a mistake if we're at/near peak.
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Based on my quick Googling earlier; I'd say so.

unwashed potato! said:
Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
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No, you contract for a period of time. E.g. track the base rate for a period of 1, 2, 5 years etc.

Fully variable where you can jump ship at any time are $lol.
 
kai said:
I have a 1.09% Mortgage that ends in November. As of today I have 3 Years 10 Months left on the remaining term.

I am only allowed a 10% over-payment allowance. Not sure what i should do; should i look at saving the full term left and paying off the mortgage in 10 months or look at changing to a new deal. As the outstanding based on today's follow on rate is 6.25%
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I don't know the balance but if you have under 4 years left, would a bank loan be more flexible and potentially cheaper?

You can pay lumps off whenever you want with one of those.
 
dLockers said:
I need to review half of my mortgage in March 2024, so will start looking around June/July I guess.

Currently it looks like I will be going from 2.39% to 4.69%, so the mortgage will go from £3118 to £4116 (5 year fix). Or, alternatively, £4233 over a 2 year fix @ 4.99%.

I'm tempted to go variable on the basis "it can't go up again!!!" which is £3662 @ 3.49%.

I'm not that far off of an 80% LTV (~82%) at the moment, which sees some minor decreases (£1200/year on the variable).
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I have my screen a whack then tried on a colleague's glasses thinking I was reading it wrong or perhaps you had typo'd :o

Fair play to you... Guessing it's a nice part of the country?
 
unwashed potato! said:
Is the consensus that 2 years fixed will result in better deals come 2 years time, rather than a 5 year fix. Fixing for 5 years now feels like a mistake if we're at/near peak.

Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
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Whatever choice you go with is a gamble. With current house prices interest rates have to be near their peak as people simply can't afford the repayments if it goes to 6+. If there's a price crash that might be different though.
 
Richie said:
I don't know the balance but if you have under 4 years left, would a bank loan be more flexible and potentially cheaper?

You can pay lumps off whenever you want with one of those.
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I'd do something like this
Even svr wouldn't be too bad if close to 0
 
unwashed potato! said:
Good to hear its only £70 higher than currently paying, but I would say the better figure to compare to is what you should have been paying at this renewal, as I assume the idea is that after each x year period, you'd expect that renewing with less debt means reduced monthly payments. Maybe it should have been £100 less, so its actually £170 worse off
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Yes, that is a fair point. Assuming interest rates were still available @ my current rate of 1.8%, then the actual (total) difference is £130 at the point of remortgage. However, we are where we are now with the choices available, and whilst I do expect future rate reductions, the days of ~1.5% ain't coming back anytime soon, so you have to make the best of your individual position and the broader financial state. No easy choices, really.
 
unwashed potato! said:
Is the consensus that 2 years fixed will result in better deals come 2 years time, rather than a 5 year fix. Fixing for 5 years now feels like a mistake if we're at/near peak.

Am I right in thinking tracker mortgages are monthly rolling, so you can jump to a fixed if the outlook doesn't look at rosy as expected?
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Well the answer to this is actually... It Depends.

Some lenders have no early redemption penalty on some trackers, meaning you can jump to something else. Some don't allow it without paying an early repayment charge and there are offerings which allow switching to a fixed rate during the term of the tracker regardless of if it has an ERC or not.
(This is why it is important to look beyond just the rate and the fee when deciding on a mortgage and why so many people fall foul when going "DIY" rather than getting advice.... many simply don't understand what they are buying, or what alternatives exist in the market and this is even more important now with the current market conditions, as evidenced in the first reply to this :P )
 
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Richie said:
I don't know the balance but if you have under 4 years left, would a bank loan be more flexible and potentially cheaper?

You can pay lumps off whenever you want with one of those.
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My dad has 3 years left. It's like 12k. I don't think it's even worth thinking about how you can get it cheaper, especially at the rates he's on due to renewing a couple years back. Why consider or worry about mortgages
 
Another quick question. Is there likely anything coming up (BE rate changes , something In the next budget ) etc that could effect the mortgage rates meaning they could go up again in the next 6 months ?
 
DJMK4 said:
Another quick question. Is there likely anything coming up (BE rate changes , something In the next budget ) etc that could effect the mortgage rates meaning they could go up again in the next 6 months ?
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No one knows.
I think there won't be much change in 6 months. Nothing dramatic anyway
 
cHk4 said:
Variable was slightly less like 4.5% or something. It’s my first home so I’m an idiot when it comes to mortgages. My current price ends on the 30/06 and I’m really not sure what I should do.
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You've got time.

Have a look around or contact a broker.
 
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