our mortgage has been on variable up until now...

Deals_2

but the deal will need to be renewed by June. i think rates will come down further and then i wonder whether we should fix . what are your thoughts on fixing against variable and we may rent out our house for a bit too. also what are the differences in rates if you are self employed or employed. it looks like most variable rates are quite low at about 3.5 % for example but fixed at least 5% or 4.99%. thanks in advance.

dunstonh

If you are going to rent the house out then you will need to first find out if the lender will agree it. If they dont, then going into a fixed rate could work out expensive if the lender forces you onto a commercial loan instead of your current residential loan.

It is too early to tell what will be best in June. You would need to start looking at deals in April. There is little point looking at current deals as we are likely to see another drop in interest rates between now and then and we dont know the state of the credit market at that point or what the long term rate prospects are. Its impossible to call what direction they will go. Although I personally believe Spring will be a good time to get a fixed rate.

lso what are the differences in rates if you are self employed or employed.

There is no difference in rates for self employed or employed. The only impact self employment can have on mortgages is:
1 - you may have your lending criteria worked out on a lower income if you and your accountant find ways to reduce your earned income for tax purposes (as its what you declare to the HMRC that matters)
2 - if you are going past state retirement age with the borrowing, then self employed get lower state pensions than employed people (just the basic pension). So, the affordability beyond retirement could be an issue if you dont have enough of your own provision in place. Most self employed people dont realise they dont get full state pensions qualification until its too late.