Re-mortgaging!

Soldato
Joined
29 Oct 2004
Posts
10,884
Are you likely to cross over a LTV threshold in the next few years? Mortgages typically get cheaper as LTV decreases so if you're going to reach a milestone like 75% or 60% LTV in the next couple of years it might be better to fix for that period and then remortgage again
 
Soldato
Joined
22 Oct 2002
Posts
8,232
Location
Near Cheltenham
Personally with everything going on in the world and the UK when I remortgaged last month I went for 5 years fixed just for the security of knowing what I'll be paying for 5 years.. Even if they dropped by 1% it wouldn't be losing that much compared to if they rose to 5%+..
 
Soldato
Joined
18 Jun 2010
Posts
6,564
Location
Essex
Yeah what's your LTV? They usually go in bands of 5% etc, if you're say 73% or 66%, try and stump up the extra money to get yourself to 70 or 65 etc. You should get an even better rate then.
 

apg

apg

Associate
Joined
4 Dec 2013
Posts
146
Personally with everything going on in the world and the UK when I remortgaged last month I went for 5 years fixed just for the security of knowing what I'll be paying for 5 years.. Even if they dropped by 1% it wouldn't be losing that much compared to if they rose to 5%+..

Yes I remortgaged for 5 years in February. Before all of the covid chaos but at a decent rate of 1.8%
 
Associate
OP
Joined
24 Sep 2008
Posts
1,161
Location
St. Neots, cambs
Thanks for the replies my LTV is 71.99% so in the middle of the 5% range. We are looking at extending kitchen into the garage and bringing the garage forward in a couple of years and will look to borrow more on the mortgage then so that would increase my LTV%. So maybe go for the 4 year option.
 
Soldato
Joined
24 Sep 2015
Posts
3,657
We're remortgaging at the monent and have decided on a 5 year fixed at 1.42%. Our LTV is around 55%.

I can only see interest rates increasing over time though I don't think it'll be by much over the next few years. I've already seen evidence that rates are on the up as a product that was on offer at 1.39% was removed just before we got our application in.
 
Soldato
Joined
13 Aug 2004
Posts
8,324
Location
England
Are you likely to cross over a LTV threshold in the next few years? Mortgages typically get cheaper as LTV decreases so if you're going to reach a milestone like 75% or 60% LTV in the next couple of years it might be better to fix for that period and then remortgage again

This is why we went with a shorter fix this time around and judging by what our neighbours had their house valued at it should work out (of course depending on market conditions).
 
Caporegime
Joined
21 Jun 2006
Posts
38,372
Rates will go down. Incoming recession won't be felt for a while thanks to the government propping everything up. Give it another 6-18 months. Plus these vaccines won't be cheap when they arrive and I already know if plenty of cafes and sandwich shops which have closed forever because no one is in offices any more. Working from home has a huge impact. We have spent £60 on fuel in 6 months. Normally spend that in 3 weeks.
 
Soldato
Joined
18 Oct 2002
Posts
12,331
Location
Birmingham
Are you likely to move? Is it likely that you'll complete the building work sooner (or later than the mortgage term)? Is this going to tangibly affect the value of your property? Is your job secure?

Personal opinion is that rates are so low as they stand that fixing is the way to go. It's not for everyone, as those willing to take on a bit more risk have done very well with tracker mortgages in the last 5 years.
 
Soldato
Joined
3 May 2012
Posts
8,520
Location
Wetherspoons
Personal opinion is that rates are so low as they stand that fixing is the way to go. It's not for everyone, as those willing to take on a bit more risk have done very well with tracker mortgages in the last 5 years.

More like 10 years but yes I agree.

Took me a while to catch on, but I can see this is mortgage lenders own interest rates we are talking, and not the BoE base rate.

I dont think the base rate will move anytime soon, mortgage rates tend to be based roughly off this, or LIBOR. But most mortgage lenders just price based on volumes and what the competition is doing, generally speaking of course, there is a fair bit behind it as you can imagine.
 
Soldato
Joined
1 Aug 2003
Posts
3,797
Location
Cheshire
We just remortaged as our old 2yr had expired, and I needed to borrow more for some building work. Split across a 1.7% 5yr deal, and a lifetime tracker +0.25%. Hedging bets.
 
Back
Top Bottom