Mortgages - where are we headed?

[M3ax]

Looking at remortgaging sometime in the next 12 to 18 months. We currently have a mortgage at 2% fixed via a family trust which has worked well for all concerned up until now. The agreement runs for another 18 months or so and had always intended to move to a mainstream lender after that. There is flexibility in the agreement so we could, if we wish, end early if the right deal was around.

I guess the crystal ball question is - is it best to lock into something now or are we safe (ish) to wait? What's the general consensus? LTV will be somewhere between 50-60% depending on if we consolidate other debt etc. Credit score is excellent (via Experian) so I'm assuming we'll get a resonable rate.

opinions/ideas appreciated - thanks .

[ChrisNic]

My simple view is that there is a relatively small chance that rates will fall much further so the risk is "overpaying" by 1 or 2% where as the risk that rates go up is far greater. We are getting used to rates sat at between 1 & 3% but this is by no means the historic norm, if they went back to 5 or 6% how would you feel about not having done a 5 yr fix now at sub 2%?

[bmwmike]

Agree
They are as low as they can go, pretty much, but definitely not as high as they can go by a long shot. Currency uncertainty and Brexit blah blah to me the risk is not worth it.

[Cheib]

I don't see UK rates rising for a good time....Brexit has taken it off the agenda for some time in my opinion. Rate rise maybe a year after we leave at the earliest.

[NickCQ]

Don't forget early repayment fees if you think there's any chance you might move again within the term of the fixed rate.

[Sarnie]

NickCQ said:

Don't forget early repayment fees if you think there's any chance you might move again within the term of the fixed rate.

Thats why all mortgages in the UK are portable........

[Welshbeef]

Sarnie said:

NickCQ said:

Don't forget early repayment fees if you think there's any chance you might move again within the term of the fixed rate.

Thats why all mortgages in the UK are portable........

Provided you meet the exact same borrowing criteria/their new criteria.

I faced this a year ago. Phoned the bank stated not needing to borrow any more but looking to move possibly. Answer yes we of course can do that - but then added provided you meet our new eligibility criteria (as it turned out we didn't buy in the end and stayed where we are - many people might have had a family now single income with stay at home Mum but cannot move or port due to that reason. ).

[Sarnie]

Welshbeef said:

Provided you meet the exact same borrowing criteria/their new criteria.

I faced this a year ago. Phoned the bank stated not needing to borrow any more but looking to move possibly. Answer yes we of course can do that - but then added provided you meet our new eligibility criteria (as it turned out we didn't buy in the end and stayed where we are - many people might have had a family now single income with stay at home Mum but cannot move or port due to that reason. ).

Of course......but you can't pick a product on the basis that you "may" need to move and then that your circumstances "may" have changed sufficiently that the lender refuses to port your mortgage.........

[M3ax]

Thanks for the replies all. Agree it seems more likely that rates will rise but I guess it's a question of when. On balance it makes sense to look around at deals now so that's what I'll be doing.

[pghstochaj]

My thoughts on this are that a lifetime tracker means that you can follow the market and fix if fixed rates start to increase. My worry about fixing today for say 5 years is that in 5 years you'll need a new mortgage deal and that might be a cliff edge moment and you've missed your chance to fix again before rates have risen.