Paying 5.5% now - good time to re-fix?

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Hello, can anyone help? We're on a 2 year fixed rate of 5.5% which will come to an end in December, with a £160k loan and a low LTV. We've managed to completely miss out on the recent low rates and are wondering what to do next.

Our lender is giving us the option to re-fix now (instead of waiting until December), with no arrangement fees or early redemption penalties.

They are offering us
- 2 year fix at 3.99
- 3 year fix at 4.39
- 5 year fix at 4.89
- 10 year fix at 4.99

So any of these deals would be less than we're paying now, but do they look good enough compared with what we might be able to get if we wait until our deal runs out in December (or if we can hold an offer from say 6 months before then from another lender)?
We're tempted by the 5 year fix at 4.89 - might not be the best rate going but there is no arrangement fee.
Thanks.

seeff

How long do you want to fix for? Ignore the rate for the minute but is there any personal reason to go with a 5 yr, over a 10 yr or even a fixed at all?

Not sure you've missed out too much yet on fixed rates. If you want a long term fixed and don't mind paying extra for that in the next two+ years (ie 4.99% vs 3% variable) now feels like a good time. We've just fixed for 10yrs @ 4.75% with Leeds. I don't think I'll regret that decision in 10 years (from a financial perspective at least - renovating the house might have killed me though!).

I don't pretend it's anything other than a personal opinion but... A couple of the fixed rate morgage offers aren't offering the same rates now as they used to (eg Leeds which has gone to 4.99% now) so you might be offered a higher rate in 6 months time. I don't think that long term mortgage rates will get much lower than the current offerings.

Not sure anyone can help in your specific case as there's lots of variables: are you happy with your current provider, how much would you realistically overpay, do you have the arrangement fee in you bank to spent on a new mortgage, do you want to take the opportunity to put in a lump sum, what the impact on insurance, how will your life change in next few year (children), etc?

If it were me I would to re-fix your current mortgage at a lower rate with the same provider, maintain the current 5.5% standing order so you overpay and drop the money saved from the "arrangement fee" into the morgage as a lump sum overpayment. Coincidentally this also happens to be the least hassle approach

But do your calculations regarding that arrangement fee vs higher percentage...