to fix or not to fix?

lucy12_2

that seems to be the question!

our mortgage finishes in Feb 09, we could fix one now, paying hefty fees (£2000) and a rate of about 5.64% (Britannia or Northern Rock). Or do we sit tight had see what happens?

As lots of banks won't even talk to us until we're under 3 months away from finishing, we could be missing out on other offers........

any thoughts would be appreciated!

herbiesjp

Ultimately - the decsion to fix or not will depend on how tight your budget is.

There are some lenders will will issue an offer letter valid for 6 months, but by taking such an option, you could be eating into the fixed rate you go for, and so not get the full 2/3/5 etc. year fixed that you were hoping for

koexelek

Northern Rock offers are valid for 16 weeks, and you can apply for an 8 week extension after that.

thejoose

Whatever you apply for now can be seen as your fall back option should better rates not be available closer to your renewal date.

For example, take a Nationwide, Abbey or Woolwich (all have long completion deadlines) deal with any arrangement fees added to the loan and then keep your eye on the market. If rates worsen then complete on the product you reserve now and if rates improve you can apply elsewhere then bin your offer from the fall back option.

Northern Rock may work but the 8 week extension is not guaranteed.