To Fix or Not To Fix?

Snippa

fix, for 10-15 years, unless you have a back up source of income, e.g. rich parents who could bail you out.

There's not a huge amount of 10-15 year fixes out there. British banks don't seem to like fixing much beyond 5 years,

Procrastinator333

Snippa - Yeah I know, it is a source of much annoyance for me!

It also seems rather unfair on the average punter who in all liklihood doesn't really understand that interest rate changes could see them out on the street.

jamespmg44

kriss_boy wrote: »

Its more of a gamble to fix if you ask me.

Some believe interest rates could stay this low or there abouts for 2 or 3 years yet the fixed rates offered by lenders dont seem to reflect that.

If rates do start to creep up then there will be plenty of time to fix then, albeit at a hgiher rate.

After the election, all bets are off regarding interest rates IMO.

Whatever government gets in, knows they'll have 5 years in power so will not be worried about being unpopular in their first year.

I fixed at 3.99% in April last year for 5 years and am overpaying as much as possible. It's a gamble but I'm betting on it costing me less over the 5 year term.

Thrugelmir

wymondham wrote: »

With rates as low as they are people should be overpaying quite considerably at the moment..

I'd go variable and overpay.

Average SVR across the top 20 lenders is now 5.12%.

So some people are luckier than others.

Though for how long?

treliac

jamespmg44 wrote: »

I fixed at 3.99% in April last year for 5 years and am overpaying as much as possible. It's a gamble but I'm betting on it costing me less over the 5 year term.

I don't think you could have done any better.