Remortgage following interest rate cut

[olimain]

Possibly the first of many threads like this following the cut to 0.25%.

I have a BTL that is due for remortgage Sept 1st. About a month ago I locked in a 2 year fix at 1.65%. The trackers were all more expensive than the fixes, question is should I hold on for a few months and see if lower rates come about or will switching on to my existing lender's SVR (Santander) likely erode any potential savings should the rate from to say 1.4%...

My gut is I should stick with what I got as any difference would likely be so minimal on a BTL mortgage.

Thanks!

[Sarnie]

I've probably received about 20 emails and calls about this already today.

There is NO guarantee that the reduction in the base rate will be reflected in a reduction in pay rates.......I had clients last month dithering over a Tracker rate with a lender....the base rate stayed the same, next day lender put their Tracker rate UP.....client lost out....

[olimain]

Thank you. Can't complain at 1.65 so think I will stick with that unless anything drastic happens to rates in the next 3 weeks

[gibbon]

olimain said:

Possibly the first of many threads like this following the cut to 0.25%.

I have a BTL that is due for remortgage Sept 1st. About a month ago I locked in a 2 year fix at 1.65%. The trackers were all more expensive than the fixes, question is should I hold on for a few months and see if lower rates come about or will switching on to my existing lender's SVR (Santander) likely erode any potential savings should the rate from to say 1.4%...

My gut is I should stick with what I got as any difference would likely be so minimal on a BTL mortgage.

Thanks!

Who do you fix with on a btl mortgage at 1.65%? Same time frame, i redid my buy to let and the best i could find was tracker base +1.42%.

[DS240]

1.65 is pretty good as it is.

I've got a 2 year fix coming to an end in Sept.

Today I have asked for documents with HSBC to refix for 2yrs at 1.74. The offer will be on the table then for 28 days I think, so I have a good 3-4 weeks to see if other offers come out or stick with that one. At least that one is in my back pocket in the unlikely event the rates on fixed go up rather than down.

Hoping for some refreshed rates to come out quickly and judge which way things are going.

Not fixing for longer than 2 years as having done some sums, it really doesn't seem worth it.

[olimain]

gibbon said:

Who do you fix with on a btl mortgage at 1.65%? Same time frame, i redid my buy to let and the best i could find was tracker base +1.42%.

It's with Leeds building society

http://www.leedsbuildingsociety.co.uk/intermediari...

[Noblebenn]

Do people feel that a 2yr fix is generally a better idea currently on BTL then 5yr fix?

First time I have had to think about re-mortgaging my BTL and I understand there is no crystal feel, just after gut feeling.

[olimain]

DS240 said:

1.65 is pretty good as it is.

I've got a 2 year fix coming to an end in Sept.

Today I have asked for documents with HSBC to refix for 2yrs at 1.74. The offer will be on the table then for 28 days I think, so I have a good 3-4 weeks to see if other offers come out or stick with that one. At least that one is in my back pocket in the unlikely event the rates on fixed go up rather than down.

Hoping for some refreshed rates to come out quickly and judge which way things are going.

Not fixing for longer than 2 years as having done some sums, it really doesn't seem worth it.

Agreed on fixing for only 2 years - a rate rise isn't priced into the markets now until 2020 from what I read!

[Irish_Stu]

Sarnie said:

I've probably received about 20 emails and calls about this already today.

There is NO guarantee that the reduction in the base rate will be reflected in a reduction in pay rates.......I had clients last month dithering over a Tracker rate with a lender....the base rate stayed the same, next day lender put their Tracker rate UP.....client lost out....

Are the fixed rates any more likely to be reduced? If so, how long does it take to filter through?

[gibbon]

olimain said:

It's with Leeds building society

http://www.leedsbuildingsociety.co.uk/intermediari...

Ah, thank you for taking the time to link. The 2.5k fee will have been why that didnt appear on my radar!

I feel relatively smug, i moved onto a variable, started four days ago.

[Jockman]

gibbon said:

Ah, thank you for taking the time to link. The 2.5k fee will have been why that didnt appear on my radar!

I feel relatively smug, i moved onto a variable, started four days ago.

Clever Git

[mjb1]

Irish_Stu said:

Are the fixed rates any more likely to be reduced? If so, how long does it take to filter through?

Same question here. I'm in the middle of a house purchase. Last month got a mortgage offer (from NatWest), 2yr fix at 1.38%. Is there any point in asking if their fixed rate has dropped. I'd be amazed if they went any lower than that, but they also had a 5yr fix at 2.something%. If the 5yr fix rate dropped at all, then I'd be more tempted by that.

[tim0409]

I'm in a similar position - our 2 year fixed deal ended at the end of July and we are still trying to work out what to do. The rate fell by .1% on what our provider had previously offered at the start of the month (before the MPC decision). For various reasons we will stick with our current provider (who seem to be competitive). I'm just wondering whether to go for either a 2 or 5 year deal now, or wait a but longer to see if their rates fall. Is there any date that mortgage providers tend to change their rates (i.e. the start of the month?). The longer I leave the less the potential savings will be as we are now on the standard rate. I still need to make up my mind on either a 2 or 5 year fixed - decisions, decisions...