Re-mortgage now or wait?
Discussion
Nemophilist said:
Is there anyone with a fix due to expire in the next 12/18 months or so that isn’t jumping to pay the ERC and refixing early?
Mine expires in May so I can start looking at a new deal about now. My wife makes a reasonable point that the week in which all this chaos and panic has emerged is perhaps not the optimal time to fix. But then that's predicated on the possibility of this somehow getting better.In theory I can still get 3.46% on a five year fix. My current one is 1.99%.
Edited by trashbat on Saturday 1st October 09:51
My current fix is 1.29%, expiring end of Feb 2024. With just under 1.5 years to run, I'm not concerned quite yet, but we're with Nationwide, and had checked if we renewing today, what rate would they offer. We'd now be getting north of 5.5%!
That's as an existing customer of 10+ years, with an immaculate payment history, and an LTV of under a third left of the home value.
Feel really sorry for those just getting on the ladder, or just at the end of their term. Hoping things will have calmed down by the time of we have to renew, but they could easily be worse.
Worst case scenario, and assuming no change in my circumstances (i.e. still in employment which isn't guaranteed during an impending recession), I should be able to pay a chunk off from savings, keeping payments down. Currently aiming to have it clear before I'm 55, so not keen on extending the term.
That's as an existing customer of 10+ years, with an immaculate payment history, and an LTV of under a third left of the home value.
Feel really sorry for those just getting on the ladder, or just at the end of their term. Hoping things will have calmed down by the time of we have to renew, but they could easily be worse.
Worst case scenario, and assuming no change in my circumstances (i.e. still in employment which isn't guaranteed during an impending recession), I should be able to pay a chunk off from savings, keeping payments down. Currently aiming to have it clear before I'm 55, so not keen on extending the term.
Also on hsbc, the variable rate at 5% is now lower than the fixes, so as my 1.6% rate runs out in Feb 23, am I better off fixing now at +5%, or just waiting to see what the variable rate will be in feb?
We’re planning on moving asap, hence hadn’t bothered to lock in a low fix before this current ass-hattery. Balls.
We’re planning on moving asap, hence hadn’t bothered to lock in a low fix before this current ass-hattery. Balls.
BaronVonVaderham said:
Also on hsbc, the variable rate at 5% is now lower than the fixes, so as my 1.6% rate runs out in Feb 23, am I better off fixing now at +5%, or just waiting to see what the variable rate will be in feb?
We’re planning on moving asap, hence hadn’t bothered to lock in a low fix before this current ass-hattery. Balls.
Struggle to see a way that the variable rate will be even on par with the current fixes in Feb, let alone better.We’re planning on moving asap, hence hadn’t bothered to lock in a low fix before this current ass-hattery. Balls.
I went from 1.75% yesterday to 6.00% today as my fixed finished and am now on the variable.
I am however on the market and won’t be getting a new mortgage when I move in with my partner as we both have enough equity to buy the home we need outright when it happens.
I think I will stay on the variable for 6 months and if the house isn’t sold I will take a new mortgage that has no redemption penalty if the market doesn’t pick up and pay it off when it does sell.
Comparing my variable with todays fixes it’s costing me about £140 a month to be on it with no ties so if the house sells before Xmas I have avoiding paying a fee to set up a new mortgage.
Let’s see what happens.
I am however on the market and won’t be getting a new mortgage when I move in with my partner as we both have enough equity to buy the home we need outright when it happens.
I think I will stay on the variable for 6 months and if the house isn’t sold I will take a new mortgage that has no redemption penalty if the market doesn’t pick up and pay it off when it does sell.
Comparing my variable with todays fixes it’s costing me about £140 a month to be on it with no ties so if the house sells before Xmas I have avoiding paying a fee to set up a new mortgage.
Let’s see what happens.
interstellar said:
I went from 1.75% yesterday to 6.00% today as my fixed finished and am now on the variable.
I am however on the market and won’t be getting a new mortgage when I move in with my partner as we both have enough equity to buy the home we need outright when it happens.
I think I will stay on the variable for 6 months and if the house isn’t sold I will take a new mortgage that has no redemption penalty if the market doesn’t pick up and pay it off when it does sell.
Comparing my variable with todays fixes it’s costing me about £140 a month to be on it with no ties so if the house sells before Xmas I have avoiding paying a fee to set up a new mortgage.
Let’s see what happens.
You can always have an agreement in principle at current rates held for 6months and decide whether you use it or not later, save you from the pain of any potential further hikes. I am however on the market and won’t be getting a new mortgage when I move in with my partner as we both have enough equity to buy the home we need outright when it happens.
I think I will stay on the variable for 6 months and if the house isn’t sold I will take a new mortgage that has no redemption penalty if the market doesn’t pick up and pay it off when it does sell.
Comparing my variable with todays fixes it’s costing me about £140 a month to be on it with no ties so if the house sells before Xmas I have avoiding paying a fee to set up a new mortgage.
Let’s see what happens.
W201_190e said:
Well managed to sort it, 5 years fixed with Halifax at 3.48% a year early- £1700 paid for ERC. The sense of relief is immense!
4 hours on hold and a 90 minute web chat with an awesome lady at Halifax.
Thanks all and good luck to you.
We’ve done the same with Halifax today and they are offering us 4.4% on a 5 year fix with 55% LTV, apparently rate has changed since yesterday!4 hours on hold and a 90 minute web chat with an awesome lady at Halifax.
Thanks all and good luck to you.
Edited by W201_190e on Friday 30th September 21:03
Our 3 month window only opened today otherwise would have been ERC too.
Sim75 said:
I owe you a beer fella. A megapint.
Had no idea they were still offering these rates for exsiting customers, had presumed they'd all be north of 6% by now!
Just secured 7 yrs at a smudge over 3%.
Phew.
and THANK YOU!!!!
No worries! Had no idea they were still offering these rates for exsiting customers, had presumed they'd all be north of 6% by now!
Just secured 7 yrs at a smudge over 3%.
Phew.
and THANK YOU!!!!
I had a look on the Barclays website this morning and they were still offering 3.15% for existing customers so there some good rates about but can’t imagine they’ll last long.
I’m not sure I’d be locking in long term at some of the mid 5% rates on offer now, especially if there’s a hefty ERC and arrangement fee but who knows where rates will go? I remember fixing 2010ish just before rates started to fall but it never really bothered me as I was happy with the monthly payment. Being out of a fix whilst rates are rising rapidly is not a nice feeling and I’m so happy I’ve fixed and can forget about rates for a few years.
six port said:
W201_190e said:
Well managed to sort it, 5 years fixed with Halifax at 3.48% a year early- £1700 paid for ERC. The sense of relief is immense!
4 hours on hold and a 90 minute web chat with an awesome lady at Halifax.
Thanks all and good luck to you.
We’ve done the same with Halifax today and they are offering us 4.4% on a 5 year fix with 55% LTV, apparently rate has changed since yesterday!4 hours on hold and a 90 minute web chat with an awesome lady at Halifax.
Thanks all and good luck to you.
Edited by W201_190e on Friday 30th September 21:03
Our 3 month window only opened today otherwise would have been ERC too.
duff said:
Sim75 said:
I owe you a beer fella. A megapint.
Had no idea they were still offering these rates for exsiting customers, had presumed they'd all be north of 6% by now!
Just secured 7 yrs at a smudge over 3%.
Phew.
and THANK YOU!!!!
No worries! Had no idea they were still offering these rates for exsiting customers, had presumed they'd all be north of 6% by now!
Just secured 7 yrs at a smudge over 3%.
Phew.
and THANK YOU!!!!
I had a look on the Barclays website this morning and they were still offering 3.15% for existing customers so there some good rates about but can’t imagine they’ll last long.
I’m not sure I’d be locking in long term at some of the mid 5% rates on offer now, especially if there’s a hefty ERC and arrangement fee but who knows where rates will go? I remember fixing 2010ish just before rates started to fall but it never really bothered me as I was happy with the monthly payment. Being out of a fix whilst rates are rising rapidly is not a nice feeling and I’m so happy I’ve fixed and can forget about rates for a few years.
Rob_125 said:
Is 6 months generally the earliest you can lock in a new deal?.... my deal expires on the 19/05/23.
With Nationwide you can switch for free 6 months before the deal expires but you can pay the early repayment charge to get out of it quickerA family member recently paid £650 to end their deal 3 months early - which has paid off now.
My nationwide fix ends in Jan 22 and their current offers are worse than all other lenders, is the incentive they do not charge ERP if you refinance with them? Swines..
tbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
tbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
Pistonsquirter said:
My nationwide fix ends in Jan 22 and their current offers are worse than all other lenders, is the incentive they do not charge ERP if you refinance with them? Swines..
tbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
So your "unspent mortgage payment equivalent" will fund your renovation AND be banked? OKtbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
Nemophilist said:
Is there anyone with a fix due to expire in the next 12/18 months or so that isn’t jumping to pay the ERC and refixing early?
Ours is January 2024 and Im resisting letting this thread turn me in to a headless chicken.The economy has been staggering from one disaster to the next this year with knee jerk reaction upon knee jerk reaction. It cant keep on like that.
Things would be horribly tight but I could still afford the mortgage if it doubled. It would certainly stick in my throat paying that much interest but it would also stick in my throat to pay a lump ERC to opt to pay more interest earlier than I have to when I could use that amount plus the time to make overpayments to reduce the debt before Jan 2024 and see where the world is then. We've seen how much things can change in a week. I've got a 66% chance of it being as bad or better come 2024.
Pistonheads is a terrible place for doom mongering and spreading panic.
StressedEric said:
Pistonsquirter said:
My nationwide fix ends in Jan 22 and their current offers are worse than all other lenders, is the incentive they do not charge ERP if you refinance with them? Swines..
tbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
So your "unspent mortgage payment equivalent" will fund your renovation AND be banked? OKtbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
Researched a bit and turns out interest only is not so easy these days, all the bankers over cooked it for us in the lead up to GFC and now we can't.
Hey @Sarnie is capital repayment switch to interest only a thing these days?
StressedEric said:
Pistonsquirter said:
My nationwide fix ends in Jan 22 and their current offers are worse than all other lenders, is the incentive they do not charge ERP if you refinance with them? Swines..
tbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
So your "unspent mortgage payment equivalent" will fund your renovation AND be banked? OKtbh I’m genuinely typing to go interest only for a little while to fund my renovation, any unspent mortgage payment equivalent will be banked until a new negotiation then I’ll pay off a lump, well it makes sense to me..
Researched a bit and turns out interest only is not so easy these days, all the bankers over cooked it for us in the lead up to GFC and now we can't.
Hey @Sarnie is capital repayment switch to interest only a thing these days?
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