Mortgage advice; I'm on a fixed rate until 31st January 2023...

Posted 28th Sep 2022
I've been on a fixed term mortgage since January 2021, my term ends on the 31st of January 2023 and I'm on an interest rate of 3.49%. What interest rate will I likely see in February? I'm with Nationwide.

Thank you.
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  1. Avatar
    For anyone wondering the same as the OP..There was a piece on BBC R5L with Martin Lewis and some chap called Andrew at around 1pm today. Please give it a listen
  2. Avatar
    Possibly around 6%, all in the news the last couple days.
  3. Avatar
    Nobody really knows the interest rates which will be around in the future - your guess, the Metro's guess, the Telegraphs guess, my guess is as good as anyones. I sugest you keep in touch with Nationwide if a large rise is going to put you into financial diificulties. Some mortgage providers can extend the period of the loan, whilst retaining your current payments BUT you would need to consider this seriously after listening to advice.
  4. Avatar
    You can contact a mortgage broker now and they can secure a deal for you at the current rates. Don't put it off until a couple of weeks before it expires.

    I submitted my application back in June for a remortgage and it's due to go through on Monday when my current deal expires
  5. Avatar
    You do not need to wait until for deal ends to get a new deal. You can get a deal scheduled 3-6 months ahead of time, so start looking now, because rates will only go up.

    Rates will depend on your circumstances so no one can give you an answer.

    Plug in your details landc.co.uk/bes…rue to see what the best rates in the market would be for your figures (though keep in mind this list assumes you would pass affordability and acceptance criteria).
  6. Avatar
    From their website:-

    When you reach the end of a fixed or tracker mortgage deal, you will automatically move onto either our Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR). Which rate you move to will depend on when you reserved your current fixed or tracker deal.

    Current Nationwide Standard and Base Mortgage Rates

    Our SMR is 5.24%. Our BMR is currently 3.75%.

    The current BoE rate is 2.25%.
    A quick check of available deals with Nationwide taking a mortgage of £100k with property value of £500k shows 5 and 10 year fixed at 4.44% with a fee of £999.
    Doesn't sound too bad to me if you're currently paying 3.49%. (edited)
  7. Avatar
    You really should have been looking at new rates by now.
    Most lenders it's 3 months in advance to start rate but a lot can start looking into new rate up to 6 months in advance.
  8. Avatar
    I've just renewed my current 3 year fixed today that runs out at the end of October, after putting it off/to the back of my mind since July . The 10 year fixed has gone up 1.35% since then to 4.75% but given the current situation I'm ok with that, at least I know what to budget for...
  9. Avatar
    Mine runs out next Month but Barclays let me switch rates 3 months before it ends so I decided on a 10 year fixed rate at 2.72% back in August. Was previously 1.99% fixed for 3 years. (edited)
  10. Avatar
    Nationwide let you reserve a future rate 5 months before the end of your current rate.

    Either speak to a broker to look at a remortgage ASAP or lock in a new rate with Nationwide ASAP to start in Feb - can be done online in 5 mins if you know what you want.
    Avatar
    I'm with HSBC and mine finishes at the end of December and I have already secured a deal with them sub 4% (double my current rate but way lower than anyone else's deals)
  11. Avatar
    You need to get a quote for the next mortgage already. You are leaving it too late.
    LandC will have brokers that will give you free advice. Consider 5 year fix rates.
  12. Avatar
    Remember not so long ago that everyone was recommending tracker mortgages and people advising to fix for 10 years were being called stupid.
    Guess these stupid people are laughing now with 3% 10-year fixes.
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    In the middle of COVID you could get a 10 year fix at 0.8% with an LTV of 60% or under. Those people must be laughing
  13. Avatar
    Think it's safe to say any deal anyone got before the absolute joke that happened from the chancellor will be way better than any rates going forward for a few years.

    Don't think things will settle down till at least 2024.

    All the folks who have their mortgages needing to renew now are going to struggle. Mortgage rise, gas and electricity rises, food rising. Its just too much for most people to counter in 1 go.

    Hopefully people will reach out, ask for help and not privately struggle.
  14. Avatar
    Author
    Thank you everyone, I'm definitely a lot wiser now, and knowing that I can do something about it now rather than wait until my fixed rate deal ends is a big load off my mind. This is why I love HUKD, you are all superstars, thanks again
  15. Avatar
    I would change now if I was you. It isn't getting better anytime soon. My deal ends sept 2024 so I'm hoping things have settled by then
  16. Avatar
    Why would only fix for two years at the lowest interest rate level it could only go up ? Dropped a proper clanger there , I fixed in 2019 2%% for 5 years (edited)
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    I did the same. Now I regret that I haven't fixed it for 10y
  17. Avatar
    Get down to Argos and buy a tent, you're going to need it.
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    Author
    State this country is going, we all are.
  18. Avatar
    My mortgage contact is end of 31th Jan aswell. If I sign a contract before the time, do I have to pay the whole early exit fee?
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    You can usually sign a mortgage deal up to 6 months before you need it, that means you have it agreed in principal and they swap you on that date BUT you need to speak to advisors/bank for exact info.
  19. Avatar
    Feel quite lucky, took a 2.79% fix for 7 years back in July, which came into play this month.

    How people are going to get on the property ladder in the next few years is a worry.
  20. Avatar
    I'm a bit worried about this, as if you're on 3.49% on a deal that started Jan 2021 my guess is you're very high LTV and not paying much back per month. Speak to a mortgage advisor ASAP and work out if repayments will be possible or not.
  21. Avatar
    Author
    On 3.49%, we were paying £312.80 a month for our mortgage. When we were renting, I was paying £400 PCM.

    UPDATE: Spoke to our broker yesterday and the best Nationwide can offer at the moment is 5.349% fixed for 5 years, which works out at an extra £60 per month. Got 2 text messages and 2 emails on my phone from Nationwide this morning saying they've accepted the deal.

    Nationwide have also told our mortgage broker that if the interest rate drops, they'll lock us in at the lowest interest rate they can, and keep checking it up until the 31st January 2023. So, fingers crossed we can get it somewhere between 3.49% and 4%, but November will determine that when we see what the bank of England does. (edited)
  22. Avatar
    5.349% is good as things stand. It's still predicted the current base rate of 2.25% to be around 5.75% come March.

    The mini budget didn't help, but rates were going up regardless, it's probably added maybe an extra 0.5%.

    It's going to be high for a long time is the current guess. But do long as you can afford the payments I wouldn't worry about it.

    Average 2 year mortgage now above 6.3%.

    BBC News - Two-year mortgage rates hit fresh 14-year high
    bbc.co.uk/new…736
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