How long to fix for?

jlovatt_2

I'm taking Martin's advice and switching my variable to a fixed rate, but can't decide how long to fix for. My choices are 2 years at 4.39%, 3 years at 4.99% or 5 years at 5.49%. Any thoughts anyone?

maryotuam

If you need stability in your finances, I would fix for 5 years. My daughter has just done that and she is a clever girl who has spent a lot of time researching. She has a good track record of making sensible judgements.

I remember high interest rates in the 1990's so 5.49% still seems low to me!

Pee

The advantage of a fixed rate is the stability.

If you think we can see the green shoots and that recovery is just around the corner, then it makes sense to fix. I personaly do not feel that that will happen that easily and think we are in for a longer harder ride. The good news is that if the economy is not recovering, there is no issue with inflation and interest rates will not go up.

Maryotuam is right. I'm amazed how many people do not know what happened to interest rates then, including professionals.