Mortgage Help

[clarky92]

My mortgage product is due for renewal and Im hoping for some advice. I don't work in finance so just learn what I can from the news and googling.

My understanding is that the current forecast is rates will rise again in 2019 as this is the most likely scenario.

However, BOE may cut rates if Brexit goes sideways.

I can 'lock in' a new product as of tomorrow which will come into effect 1st Feb 2019.

My questions to the guru's; do I lock in a product now? 2, 3 or 5 years? Do I wait to see further progress on Brexit to see if the BOE give away any clues in the coming months?

I'm thinking a big indication is if Mays deal gets shot down in the December vote?

Am I over thinking this too much?

If it helps - property is worth 285,000. I owe 180,500 and looking at another 29 years.

Fixed rate only. 5 years is coming out at 2.19%

Thanks in advance of any advice.

[James_B]

Yes, you are overthinking it. There is a current expectation of rates doing very little for a fair while. A fix is a little bit more expensive than the average expectation of a floating deal but buys you certainty.

If you want a data point, without me giving you advice I’m happy to say that all of my mortgages are on a two year fix.

[trickywoo]

I’ve recently gone five year fix. Not because I expect rates to go up as such but because I don’t expect them to go down much and the certainty is worth the extra cost for me.

[clarky92]

Thanks for the advice. Most likely going for 5 year fixed at 1.99%

[Edible Roadkill]

Thing is ‘if’ rates move in that time it’s not going to be by much. ‘IF’ brexit wobbles make boe reduce its base rate it’s not going to be by much, probably the .25 it raised by recently so with your current debt you’ll maybe save 20 quid a month ‘if’ it happens. Or it could go the other way and cost you 20 quid a month.

I think I’d rather the security of knowing it’s dealt with for another X amount of years term. Personally I’d take the rate offered to you and have one less thing to worry about while brexit makes the markets yo-yo for a while.