Rising rates????

Gorgeous_George

Leaning more towards Japan IMHO.

Over 5 years of low rates makes fixed rates poor value.

GG

adamcarvell

so as we are coming to the end of our fixed deal in march with the a & l .do i fix or tracker or sit tight?

Radiantsoul

Gorgeous_George wrote: »

Leaning more towards Japan IMHO.

Over 5 years of low rates makes fixed rates poor value.

GG

I think you are missing the point that fixed rates are fixed. For a lot of people it is worth paying a premium to reduce the risk in variable rates.

adamcarvell

thats my thought know what we are paying for the next five years and that's it.

Radiantsoul

adamcarvell wrote: »

thats my thought know what we are paying for the next five years and that's it.

There is still a risk that prices might fall(deflation) and so fixed rates are not quite risk free(with a variable rate interest rates could fall although presumably this is limited to zero). But it does strike me for anyone for whom interest rates make a significant dent in their income then it is better to fix.

dimbo61

Hi katykitten
Have you considered the First Direct 3 year offset fixed at 4.39%
Put your spare money in the offset account ( plus TAX money until its due)
low fees and 3 years security !

katykitten

thanks for all the information, obviously some very knowledgeable people here and lots to think about - will probably switch in the next few months but would like a lower rate than the abbey are currently giving me, would consider offsetting my savings but not sure if i have enough with £10k to make it worthwhile doing this - 4 plus percent seems quite high when the woolwich is offering around 2% fixed for 2 years, will have to see if i qualify for this I guess its always a gamble and i will pay off as much as i can whilst rates are low - just dont want to be penalised for doing this which is what will happen if i go for a fixed deal!

Gorgeous_George

Radiantsoul wrote: »

I think you are missing the point that fixed rates are fixed. For a lot of people it is worth paying a premium to reduce the risk in variable rates.

Not missing the point at all.

The OP starts with a strong feeling that rates will rise in the next few months - backed up by an ex-city banker. Then, despite this strong feeling, says that a tracker looks appealing.

If you expect rates to rise, fix. If you don't know and want certainty of repayments for few years, fix.

I expect rates to stay low but obviously I'm not as authoritative as an ex-city banker. Generally, it is better to listen to the experts.

GG

patman99

I switched from a Co-Op tracker (base + 0.75%) to a C&G tracker (base + 0.17%), best thing I did. If I switch again, then will consider a fixed rate instead. If the Tories win the next election, them interest rates will end-up going through the roof (anyone remember the 15% mortgage rates in the '90s?).

treliac

patman99 wrote: »

If the Tories win the next election, them interest rates will end-up going through the roof (anyone remember the 15% mortgage rates in the '90s?).

:eek: What on earth would they do with all those people homeless through repossession?