Remortgage time?

Prophet

Prophet

Prophet

Soldato
Joined
5 Oct 2004
Posts
7,398
Location
Notts
I've been looking at mortgages for the past few weeks as I'm out of my last deal and it's time to change.

I'm not looking for advice on whether I should go fixed or flexi at this time as I want to fix. However, I'm interested in knowing what peoples opinions on the length of the fixed period. I've got an offer from my current lender offering 2.99% for 5 years with no fee.

Anyone recently fixed fro more than the usual 2 to 3 years? If so what was your reasoning?
 
I fixed for 5 in the past year. 3.09 or 3.19 I believe. Given most standard variable rates are 4 and above at the moment, they will only go up when rates eventually migrate upwards, so 5 years of knowing the payments are capped is useful.

Your 3% with no fee looks like a nice offer.
 
I've just fixed (not gone through yet but all approved) at 2.19% for 5 years. My feeling is that interest rates are only likely to rise and so being able to fix at that rate and know what the payments will be for 5 years is attractive. We also have the option to port the mortgage if we want to move, as well as making over payments if/when we have spare cash. Seemed like a no brainer for us.
 
Fixed last year at 2.69 for 5 years.

I'd fix for as short or as long as possible. If you go 2 years you might be facing the bad news times of the next parliament term.
 
A lot of trackers at the moment depending on your LTV are set around the sub 2% mark, if you are fixing your mortgage at 3% for several years now, considering the Bank of England only raises their base rates by 0.25% and although likely to rise in the future it is very unlikely to raise by over 1% to match a fixed rate, from what I have read in the economist we are still importing a relative amount of deflation from the still in recession Euro countries which they estimate will take at least 2 years before inflation starts hitting the point where they might raise interest rates to slow it down.

For instance at 80% LTV Chelsea are offering a 1.84% tracker for 23 months if the estimates are correct you will have 2 years easily below your fixed rate and then use the additional capital from the lower interest payments to overpay your mortgage thus increasing your LTV giving you an even better deal in 2 years time where you could then potentially get a better rate for a fixed mortgage if you wish for stability or continue looking for trackers depending on the financial outlook.
 
tracker 1.79% - lifetime - really didn't see the point in fixing at a higher rate and then having to pay a fee to re-mortgage again anyway lest I get raped by the standard variable rate
 
Thanks for all the replies :)

For those moving to another provider, how long did the process take? My LTV is 70% btw.
 
First time buyer here, looking to fix for 5 years for security. Never know whats going to happen with the current financial situation and want to take advantage of the lower rates.

I've looked at an interest rate of 2.89 with a LTV of 80%.

Having a quick look around 70% nets you around 2.69% with HSBC and Leeds BS, that's with fee's though (5 years).
 
Leesey said:
First time buyer here, looking to fix for 5 years for security. Never know whats going to happen with the current financial situation and want to take advantage of the lower rates.

I've looked at an interest rate of 2.89 with a LTV of 80%.

Having a quick look around 70% nets you around 2.69% with HSBC and Leeds BS, that's with fee's though (5 years).
Click to expand...

Yeah most of the good deals have fees which when calculated mean I'm worse off than with a 2.99% no fee deal over the 5 years. I'm happy with the monthly repayment, just getting cold feet before doing the deed I guess.
 
Kermit said:
Reading this thread made me think to change my mortgage as haven't really paid any attention to it for 3-4 years now other than reviewing the yearly statement and didn't even really know what deal I was on. Mine isn't online so can't really review the details but C&G had a switch deal link so followed it, entered my accoutn number and a few other details and this came up.

Does this mean I'm only paying 0.79% and therefore BoE interest rates would have to rise about 2% before any thing better in the 2.5-3% would be worth switching to :confused:

CampG_Mortgage.png~original
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It's not 100% clear but when I was on a tracker it was that rate plus the Bank of England rate. Either way I'd stick with that for now :)
 
Im liking the Post Office deal 5 years at 2.79% with a £995 fee or 2.95% no fee.

Is it worth going with the no fee and just putting the fee amount into overpayments?
 
Look at the monthly payments and take the difference between fee and no fee products and see what the difference is. So say the no fee monthly payments are £30 higher on a 2 year fixed but the fees are £999 for the lower rate it's obviously cheaper to go for the higher monthly payments.

My mortgage isn't up till may but I'm having a think about it now. I have another property which is mortgaged (great deal lifetime 0.99% above base) which might restrict who will lend to me as my income won't stand up against both combined.

I'm tempted to go for a 2 year fixed (post office, no fees for 1.99%?) Rates will rise but very slowly. The problem will be if rates move quicker than expected and the lender rates increase in response leading to high then current offerings.
 
Makes sense, plus the fee that's saved you can use towards overpayments, which probably saves on total interest paid as well.
 
I fixed for 10 years at 5.2% in 2009 expecting the base rate to go up:rolleyes:. I remortgaged last year for a 5 year fixed at 2.49% and the ERC of the first one was less than i would save dropping to the new rate so it was a bit of a no brainer really (if only i'd done 5 years to start with) Oh this is at 65% LTW.
 
I've heard rumors that the base rate is due to rocket soon as its been at rock bottom for so long so I would guess a longer period on your fixed rate would be a good bet but you never know with these things.
 
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