Mortgage Renewal

[georgefreeman918]

So we are finally able to look ahead to our mortgage renewal in October, and given that rates only seem to be going one way, how long are people fixing for?

2 / 3 / 5 or 10 years? Currently leaning towards 5 years fixed. 10 years seems far too long IMO.

Rates going from 1.49% to 2.94%! And it could go much higher yet. Need to fix before next BOE interest rate increase

[Milner993]

I'm in the same position as you, same rates payment increasing by a about £150 a month.

I've always done 2 year fixed and I'm considering a 5 year but this time around I'm really confused on what to do, so watching with interest!

[Alex_6n2]

If you believe the forecasters, rates will continue to climb through Mid 2023 before dropping back again in 2024

I can't imagine rates will ever hit 0.25% again though, unless the coming recession gets REALLY bad. But the supply of money should remain limited now for the BoE to have any chance of getting inflation under control

I'd fix for 5 years

[Wacky Racer]

georgefreeman918 said:

So we are finally able to look ahead to our mortgage renewal in October, and given that rates only seem to be going one way, how long are people fixing for?

2 / 3 / 5 or 10 years? Currently leaning towards 5 years fixed. 10 years seems far too long IMO.

Rates going from 1.49% to 2.94%! And it could go much higher yet. Need to fix before next BOE interest rate increase

Rates were between 10% and 15% in my day, 3% lol!

[Dingu]

Wacky Racer said:

Rates were between 10% and 15% in my day, 3% lol!

And houses cost £3 too

[Glosphil]

Dingu said:

Wacky Racer said:

Rates were between 10% and 15% in my day, 3% lol!

And houses cost £3 too

When I bought my first semi-detached house rates were 10% & the house cost £7,500. Max allowed mortgage was 2-1/2 x my salary + 1/2 my wife's.

Perhaps if that ratio of borrowing to earnings had been kept house prices would not have been able to climb to today's rediculous level.

[wiggy001]

I’m just in the process of fixing my mortgage for 10 years. I have 12 years left on my mortgage which I hope to bring down with overpayments so knowing what I am paying for the rest of the mortgage is worth it to me. Same rate for 5 or 10 years so made sense to me.

[Jaguar99]

We fixed for five years last July. Even then rates could only ever go one way. Glad we did it now.

[anonymous-user]

Just about to complete a house move on a 5 year fixed term (arranged in Feb when rates were still low). It feels like the right decision to me in these times, but could be biased.

[ClaphamGT3]

We fixed for five years in January (mortgage offer from last Nov) at 0.75%.

Glad we did now.

[mnaylor]

Still got 18 months left on our current deal so fear I am going to get stung when coming out of it. I could pay the early redemption fee now but it's £7.5k, not really something I want to do.

[okgo]

Why do people think it’s 3 months out you can do this?

It’s 6. By waiting 3 months you’ve cost yourself a fortune.

About to complete a new mortgage myself at 1.8% for 5 years coming from a 2 year at 1.25%, it still annoys me it’s more but it could obviously be much worse.

Edited by okgo on Sunday 19th June 10:15

[Sarnie]

okgo said:

Why do people think it’s 3 months out you can do this?

It’s 6. By waiting 3 months you’ve cost yourself a fortune. [/footnote]

Not all lenders mortgage offers are valid for 6 months, a number are only 3 months......

[shambolic]

Just had a letter in from virgin about ours ending in October. Rates are 2.54 for 2 year fixed and 2.7 for 5 yr fixed.
They will honour those rates till end of July if we take them up.
We have by October £165k left on a £600k house.
We have the money and more in cash to pay it off but unsure if that’s the best option. Money isn’t invested as we’ve not had the chance to do anything over last year.

[98elise]

Fixed for 5 years a few months ago, glad I did!

[MesoForm]

Is anyone else reading these posts and wondering why us in the great unwashed are allowed to gamble with thousands of pounds by judging whether interest rates will go up down in the next 5 years?
I know there’s no way round it, just seems like a massive gamble whatever you do.

[egor110]

MesoForm said:

Is anyone else reading these posts and wondering why us in the great unwashed are allowed to gamble with thousands of pounds by judging whether interest rates will go up down in the next 5 years?
I know there’s no way round it, just seems like a massive gamble whatever you do.

it's not a gamble , by fixing your paying extra for the peace of mind that for the next 5-10 years what your going to pay each month .

[TheAngryDog]

My mortgage isn't due until 2024. I feel I am in for a bit of pain at that point.

[98elise]

egor110 said:

MesoForm said:

Is anyone else reading these posts and wondering why us in the great unwashed are allowed to gamble with thousands of pounds by judging whether interest rates will go up down in the next 5 years?
I know there’s no way round it, just seems like a massive gamble whatever you do.

it's not a gamble , by fixing your paying extra for the peace of mind that for the next 5-10 years what your going to pay each month .

Agreed. It's the opposite of a gamble. You are creating certainly in your mortgage payments for a number of years. You pay for that with a slightly higher % rate. Staying on a slightly lower rate now and risking rises is a gamble.

I remember rates of 7% being normal, and peaking at 15%

[djc206]

Sarnie said:

okgo said:

Why do people think it’s 3 months out you can do this?

It’s 6. By waiting 3 months you’ve cost yourself a fortune. [/footnote]

Not all lenders mortgage offers are valid for 6 months, a number are only 3 months......

^this man knows his mortgages

Natwest allowed us to lock in at 6 months, Barclays who we are currently with said 90 days. I’m glad I didn’t wait.