Shall I fix?

kookookaty

y coventry mortgage recently ended and 2 parts of my mortgage moved onto a great tracker rate and other onto the SVR - overall i'm on an equivalent rate of 2.4% which I'm delighted with. The cheapest mid term fix now seems to be 4.25% and I know these are going up so I would be most grateful if any of you clever people out there could give me some advice as to whether I should stay as I am or fix at a much higher rate. If I do the latter I'll be paying £200 more a month immediately. Thank you in advance.

patchwork_cat

64 000 dollar question? When to fix to minimise long term interest rate.

dimbo61

This depends on so many things!!
You have 3 parts to your mortgage ?
Whats your LTV and can you afford for rates to go up 6/7/8%
With all the doom and gloom on the tv and the massive debt we are all in I am happy to be on a long 5 years fix and so what if someone else has a better /cheaper deal.
I can sleep at night
Your call but overpay now as you are saving money!

supersunshine

kookookaty - i am having the exact same dilema, coming to the end of a deal - do i go on svr or go for a fixed rate offset mortgage. Or do i go for a tracker - not sure these are such a good deal in the long run. who has a crystal ball here - someone must :-)

patchwork_cat

If you opt for a fixed rate I know that YBS for example - which you pointed out to me thank you Super - will allow 6 months for completion after offer. So I plan on taking my time about completing as long as SVR's are low and only finish it when I have to. However I have seen 2 good 5 year fixes dry up in the last couple of weeks, so there may be more, but also there may not. It is a gamble.

supersunshine

aha - that is good to know Patchwork Cat - that might just be what i am looking for :-)

It is so hard to make a decision with these things, I am no good at making decisions anyway and all this looking at mortgages is quite mind boggling as I am really not sure which one is the best as it is hard to predict what is going to happen. Oooh decisions!

patchwork_cat

The last couple of days I have had such a headache trying to work out what to do for the best! In the end I decided to go for it and stall a bit so I at least get a few months on SVR. I do like the security of fix and lets face it we have no idea what is going to happen to interest rates in the future. I was talking with OH and he said we have probably paid over the odds on fix over the years, but as I pointed out for a lot of last year if we hadn't been on fix we would have been worrying about not being able to afford to pay the mortgage - my sleep is important to me!!