An ideal time to flip your mortgage!

A friend of mine is a mid-ranking CC in HMRC and over some much delayed drinks a couple of weeks ago he was telling me about the projected interest rate rises some time later in the year. This is primarily down to people releasing the capital they have saved over the past year or so. The increase is only going to be temporary though by all accounts.
However this brings me onto the subject of my post, essentially, if you are in a position to do so then now would be the ideal time to flip your mortgage to take advantage of the lowest rates in years.
I've just got back from a meeting with my broker and I'm flipping a mortgage a year early and going from a 3.84% rate to 1.84% on a 5 year fixed deal. This will save me £116 per month. Yes, there is an early exit fee to my current provider, and a small brokers fee, but if you are in the position to do so, I would highly recommend looking at flipping your current mortgage, it could save a you a hell of a lot of money at current rates.
 

RBMK

LE
Book Reviewer
What's a mortgage?
Not had one of them for at least 4 years.

Seriously, beware of the set-up fees which can often make switching not worth the effort. At one point we were quoted £2,500 "admin fees" to transfer our mortgage provider to take advantage of a 0.25% lower rate which would have saved us £250 per year on our £100k mortgage, so 10 years to break even! We didn't bother.

The best way to get rid of your mortgage is to make regular overpayments. I used to put my monthly travel expenses into overpaying our mortgage. Even a few quid every month makes a significant difference in the long term.
 
A friend of mine is a mid-ranking CC in HMRC and over some much delayed drinks a couple of weeks ago he was telling me about the projected interest rate rises some time later in the year. This is primarily down to people releasing the capital they have saved over the past year or so. The increase is only going to be temporary though by all accounts.
However this brings me onto the subject of my post, essentially, if you are in a position to do so then now would be the ideal time to flip your mortgage to take advantage of the lowest rates in years.
I've just got back from a meeting with my broker and I'm flipping a mortgage a year early and going from a 3.84% rate to 1.84% on a 5 year fixed deal. This will save me £116 per month. Yes, there is an early exit fee to my current provider, and a small brokers fee, but if you are in the position to do so, I would highly recommend looking at flipping your current mortgage, it could save a you a hell of a lot of money at current rates.
CC what is that

Anyway I expect the story is true but only part of a bigger story, not so much as spending pent up savings but inflation taking hold, many business upping prices to recoup losses over the course of the pandemic, and at some point in the future Rishi (The new tory heir apparent) will have to cut back on QE.

Rishi called the end of the pandemic too soon and has created a powerful thrust to inflation with his prolonged stamp duty holiday - not to mention Eat out to help out which created a spike in Covid infections

Never the less yes a good time to get a new mortgage

Archie
 
CC what is that

Anyway I expect the story is true but only part of a bigger story, not so much as spending pent up savings but inflation taking hold, many business upping prices to recoup losses over the course of the pandemic, and at some point in the future Rishi (The new tory heir apparent) will have to cut back on QE.

Rishi called the end of the pandemic too soon and has created a powerful thrust to inflation with his prolonged stamp duty holiday - not to mention Eat out to help out which created a spike in Covid infections

Never the less yes a good time to get a new mortgage

Archie
CC (Civil Servant). And, TBH, I can see a lot of weidness coming to the fore in the future so decided it would be a good time to flip. I'd used this broker before (40 years in the business and as straight as they come. My fee to move is about £1600, but we can add that onto the amount borrowed from the new provider.
The house I'm in now was bought after I seperated from my (now) ex. She kept the old house and I kept the company.
Given my age (47) when I got it I'm limited to a 20 year mortgage, so any chance to save a few pennies and put them back into the house then so much the better as it needs a new kitchen and quite a bit of plastering still (old crap painted over wall paper, artex etc.).
We won't see rates like this again for a very long time I think.
 
HMRC don't set interest rates, the Bank of England does, and they've been independent of the Government since 1997.
 

cowgoesmoo

Old-Salt
I'm not sure what special insight a mid-level pen pusher in the HMRC would have into future interest rates tbh. Given that the professionals seem to be see-sawing between epecting low rates as Brexit and Covid have trashed the economy, and high rates as the economy is growing too much, I think its anyone's guess.
 
A friend of mine is a mid-ranking CC in HMRC and over some much delayed drinks a couple of weeks ago he was telling me about the projected interest rate rises some time later in the year. This is primarily down to people releasing the capital they have saved over the past year or so. The increase is only going to be temporary though by all accounts.
However this brings me onto the subject of my post, essentially, if you are in a position to do so then now would be the ideal time to flip your mortgage to take advantage of the lowest rates in years.
I've just got back from a meeting with my broker and I'm flipping a mortgage a year early and going from a 3.84% rate to 1.84% on a 5 year fixed deal. This will save me £116 per month. Yes, there is an early exit fee to my current provider, and a small brokers fee, but if you are in the position to do so, I would highly recommend looking at flipping your current mortgage, it could save a you a hell of a lot of money at current rates.
HMRC don't set interest rates...
 
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