Remortgage time?

[Prophet]

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.

Whats your source?

Looking at the forecast it's set to rise slower than previously expected?

 

[robj20]

I think the next big change depends who gets in come election time.

 

[rossk26]

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.

"rumours"

 

[kona786]

Exactly - it can't rocket. We'll be back in a recession otherwise.

 

[panthro]

I'm on a life time tracker with HSBC at 1.89% plus base. About to move house and double my mortgage (scary) so not sure what to do. Stick with the tracker I have or go fixed for as long as possible....

 

[SDK^]

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.

Most forecasters now think interest rates will not rise before next year.

Source Today : Re: BoE holding rates at 0.5%
http://www.bbc.co.uk/news/business-31148190

 

[Simon]

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?

Most important. What LTv?

 

[Prophet]

Most important. What LTv?

70%

 

[Blue160]

I fixed for 10 years at 5.2% in 2009 expecting the base rate to go up. 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 did something similar in around 2008 but at 6.75% for three years. That didn't half hurt as interest rates started tumbling. Eventually came off it on to the SVR which is base rate plus 2%.

 

[HangTime]

Who have you got your mortgage with?

Nationwide probably. That's what I would go with, 10 year fix (rates have dropped by around half a percent fairly recently). Don't see much value in short term fixes at the moment given rates seem unlikely to rise significantly in the next couple of years, and also a ten year fix means you don't have to worry about arrangement fees for 10 years (compared to remortaging after a few years).

2.89% will obviously cost more than some other products over the short/medium term but who knows where interest rates could be in 2020-2025 which is where you could be protected from potential rises.

Don't forget that even if base rates stay low it is also possible that remortage plans could be scuppered if lenders start increasing their margins (just look at what the markup versus base rate is today compared to what it was 7-8 years ago).

Personally I won't be looking to remortgage as I have a lifetime tracker but if I moved house then the 10 year fix would be high on my list.