2 year fix

pollyanna24
pollyanna24 Posts: 4,370 Forumite
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in Energy
With energy prices going up, would it be sensible to go for a 2 year fix?

Most of the fixes are 12 month, but there are a few 18 month and I have found one 2 year.
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Comments

  • fredandwilma
    fredandwilma Posts: 1,251 Forumite
    Chutzpah Haggler I won, I won, I won! Rampant Recycler Debt-free and Proud!
    Chances are, I'll be looking for a long fix, early next summer.

    Predictions say, there could be a dip or at least prices stable in the early part of next year.

    I took a long fix which has worked out very well and I shall probably do the same again, depending on the market at the time.

    However, it's a gamble.

    No one can definitively predict what will happen in the future.

    I personally think that's the way to go, at the moment. Well, not quite this moment, (approaching autumn / winter,) but certainly next spring / summer.

    Collectives have had their day, for now.

    It just depends what energy game you play?
    Fred - Where's your get up and go?

    Barney - It just got up and went.


    Carpe diem
  • Cardew
    Cardew Posts: 29,036 Forumite
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    This question is posed loads of times and the answer is nobody knows; it is simply a gamble.

    I have today gone for a 2 year fix. If it turns out to be a bad move and prices drop considerably, I will pay the penalty for leaving and switch.
  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
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    pollyanna24 wrote: »
    With energy prices going up, would it be sensible to go for a 2 year fix?

    Most of the fixes are 12 month, but there are a few 18 month and I have found one 2 year.


    Depends upon two simple facts .
    Have they gone up and that's an unknown in two years time . So you are guessing that they will go up even if using informed opinion .
    Two whats the price difference .
    How much more will you pay in year one and year two than a current 12 month deal .

    £50 pa more i would probably take it £100 pa more i would not take the bet .
  • polymaff
    polymaff Posts: 3,904 Forumite
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    The crystal ball here is on the blink :)

    Some of the 2019 deals look very expensive compared to the 2018 ones but in the end, it is your choice / punt
  • Neil_Jones
    Neil_Jones Posts: 8,912 Forumite
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    I recently took two one year fixed deals and already in less than six weeks nothing on the Energy Club (even the new collective) can get anywhere near those for me. That's how fast prices may be rising. I don't foresee any drops long-term and I wouldn't be surprised if the overall trend is upwards between now and when we leave the EU.

    The decision is yours, just bear in mind you may end up paying more in the long run if prices drop. You can always switch again but of course bear in mind the penalty clauses, if any.
  • gitch01
    gitch01 Posts: 53 Forumite
    I just took the plunge with OVO today with their 2 year fixed. comparisons say I can save £288 each year from my British Gas standard tariff.
    so if prices drop a bit then I don't think I'm going to lose out by much.
    however with all the uncertainties going on in the world I don't think prices will drop dramatically, if at all. but then what do I know.
    plus the said they can change my smart meter (for free) from BG one to an up to date one that is still compatable if I switch suppliers
  • Neil_Jones
    Neil_Jones Posts: 8,912 Forumite
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    Well moving from any standard tariff to, well anything else really, will save money as those are all overpriced anyway. You may find the rate you've been given from OVO turns out to be rock bottom but at least it won't change for the next two years so no matter what happens price-wise you aren't affected. Good show :)
  • AndyPK
    AndyPK Posts: 4,241 Forumite
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    Generally 2 year fixes where you pay more than a 1 year fix are a bad idea, just to scare people who think prices will rise to where they can't afford it, so will lock into an expensive price due to fear.

    That said, as a low user the SSE 2 year elec deal was a good deal for me. (in March/april)
  • macman
    macman Posts: 53,088 Forumite
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    What matters is the rate you fix at, not the length of the fix. If a supplier offered a 10 year fix at 50% more than SVT, would you be tempted?
    No free lunch, and no free laptop ;)
  • polymaff
    polymaff Posts: 3,904 Forumite
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    edited 7 September 2017 at 12:07PM
    macman wrote: »
    What matters is the rate you fix at, not the length of the fix. If a supplier offered a 10 year fix at 50% more than SVT, would you be tempted?

    This thread is about fixed tariffs, not SVTs, but in either case one might well consider a 10yr fixed at 50% more than the current other fixes / SVTs - if, over its lifetime, it would cost less.

    And that decision, as is being pointed out throughout this thread, is guesswork - not cut-and-dried, as you seem to think.
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