How long to fix for?

the_skint_minx

Hi Everyone,

I'm remortgaging, and need to decide whether to fix for 2, 3 or 5 years - based on what's likely to happen with interest rates over the next 2 years, weighed up against the extra cost of remortgaging more frequently.

Can anyone point me in the direction of some resources? I need an easy-to-understand overview of what the bank of england is up to at the moment and how inflation and the impending recession is going to affect things.

I'm sure that's the kind of thing that's covered on this site, I just can't see where so if anyone can direct me that would be great.

Ta

lisyloo

No sorry.
No-one can predict rates that far out, so you are unlikely to find much.

The issues are as you say

a) higher fees for remortgaging frequently
b) chance of being "in between jobs", on maternity, or uncompetitive deals around etc.

My personal opinion is that the economy will be in pretty bad shape in 2 years so personally I feel a longer deal is a better idea.
Why are you restricing it to 5 max?

Against this is a slightly higher rate.

wymondham

Depends, how much is your mortgage for and how happy are you to pay fee's every X years?

james27red

i got told that the mortgage rates come down to coincide with the elections, so with this advice i wouldn't fix your mortage untill the next election date then try and fix every 5 years if you can find a bank that will fix that long during that time

james27red

sorry 4 years

wymondham

james27red wrote: »

i got told that the mortgage rates come down to coincide with the elections, so with this advice i wouldn't fix your mortage untill the next election date then try and fix every 5 years if you can find a bank that will fix that long during that time

Interest rates are fixed by the Bank of England and not the Government - are you sugegsting they are not entirely honourable ?? :rotfl:

manikm

and who dictates to the Bank of England what the rates will be - yes, the chancellor. (therefore the government set the rates)

soooo naive.