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Remortgage: joint mortgage, husband permie, me contractor - thoughts?

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    #11
    Originally posted by Glencky View Post
    Hi all,

    Our mortgage is currently base plus 2.15%, so currently 2.65%, for life of mortgage. It's a good rate, but not the best, and we'd like to a) fix, ideally for 5 years, and b) get better, even if only slightly.
    In my opinion you'd be crazy to move away from your existing lender. You're on base plus 2.15% for the life of the mortgage, that's a fantastic deal. Yes you may benefit in the short term by going on a slighter cheaper rate, but when that deal ends (say after 5 years) it will likely revert to a SVR of 4% or more. Yes you can remortgage again, but who knows what the rates will be in 5 years.

    If you were not on a life time tracker deal, then it may be worth switching. It also depends on how long you have left remaining on your mortgage term. If it's over 10 years then stay put.

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      #12
      Originally posted by Freelancer Financials View Post
      In my opinion you'd be crazy to move away from your existing lender. You're on base plus 2.15% for the life of the mortgage, that's a fantastic deal. Yes you may benefit in the short term by going on a slighter cheaper rate, but when that deal ends (say after 5 years) it will likely revert to a SVR of 4% or more. Yes you can remortgage again, but who knows what the rates will be in 5 years.

      If you were not on a life time tracker deal, then it may be worth switching. It also depends on how long you have left remaining on your mortgage term. If it's over 10 years then stay put.
      Very belated reply from me -

      it's not that great. I had tracker mortgages for the better part of a decade when we got this one, and the base rate differential on any mortgage I had was never more than 1%. During the same time period, I knew people who had base MINUS a percentage (and even somebody who, as a result, had their mortgage company paying THEM to have a mortgage when the base rate dropped to 0.5%). A base rate differential of 2.15% is fantastic at the moment because the base rate is low. At the point where base rates start to rise - which right now looks a year or so away though obviously I'm not prescient - my anticipation is that the best available base rate differentials will drop a little to historically more typical margins.

      In any event, it's also a judgement as to what you think will happen to base rates. I think in the next 5 years it's inevitable they'll rise considerably. Therefore I'm looking to either get a lower base rate differential for the life of the mortgage or - more realistically, I've seen what's out there - a 5 year fix.

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        #13
        Originally posted by Mark McBurney@CMME View Post
        you're very unlikely to find a five-year fixed rate at less than the 2.65% you're currently on?
        Yes but you can find a non-fixed mortgage MUCH less that 2.65% (I'd guess about 1.5% with that LTV). And 2.65% tracker is very different from fixing at 2.65% for 5 years.
        Originally posted by MaryPoppins
        I'd still not breastfeed a nazi
        Originally posted by vetran
        Urine is quite nourishing

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