lock mortgage rates in or not ?

andrew28

What is the current thinking on fixed rates mortgages?

Should i try to lock in at a low rate for 5 years

Or should i risk just floating on the market

I am on a repayment mortgage

Does martin have a opinion on this

Many Thanks

Andrew

Mini_Bear

Interest rates cannot physically go much lower, so being on a tracker is unlikely to reduce your mortgage.
Personally i wud advise fixing for 5-10yrs at the lowest rate possible as i see interest rates goin up in the next 18months-2yrs when inflation kicks in.
It does however depend on your LTV, if its high (80%+) the fixed rates you will get will not be very competitive.
Good luck with what you decide.

beecher

I just recently took a 4 year fixed rate out as the rates were the lowest they'd been in a long time. They've started to creep up again so I'm glad didn't sit on the SVR any longer. It depends on your own situation though as there are so many different variables.

CrazyHorseB

I was going to take out a 5/10 year fix, but i'm not thinking of eithr sitting on SVR or switching to a very flexible tracker where I can get on a fix if they start to offer better deals.

At the moment the best 5 year deals are 4.5% with £1000 sign up fee, compared to 3.99% and no sign up fee a few months ago, but there is no obvious reason why they should have put them up. The LIBOR rate continues to come down and the BoE have given a strong indication that rates will stay the same for another 18months at least. I think a couple of banks may start to offer slightly better deals in the next 3-6 months...

foreversummer

If you can afford to hang on, ie you have plenty of equity and you can afford unexpected rate rises, then hang on.

Can't see rates rising much until late next year and I believe that fixed rates will come down in due course once competition returns to the market.

Just my opinion of course.

Foreversummer

Cazzywazzywoo

I am currently on my banks SCR of 2.99% and hoping that the fixed rates will come down again in a few months.

Not sure if this is a risky strategy or not!

Cazzy

Peelerfart

Suppose it really depeneds on what you're paying now. If you have a good deal , hang on in there if not then , IMHO, fix for no less than five years. You dont want to be paying another marked up arrangement fee every two years now do you ?

If fixes are going to come down or go up no-one really knows . My guess is down a bit more.