MSE News: Is it time to fix your mortgage?

JimmyTheWig

I would summarise the experts' (though I take GG's point about them being salesmen) comments, along with my opinion, as follows...

1. Not much is likely to happen to rates in the next 12-18 months. Therefore it is unlikely to be worth going for a two year fix with a 1% premium. There's little point in paying the extra as insurance against losing your house if you're then going to lose it when the fix ends in 2 years time.

2. There is a premium of 2.5% on a 5 year fix. For some this will be worth it. But for many others it won't be. Rates would have to rise a lot, and stay consistently high, for this to be worth it.

Our current fix doesn't run out until the end of the year, so it's a bit early to be looking yet. But when I do, if my research agrees with the experts here I'll go with the variable rate and save the difference to cover us for any expected rises.

Dan_1976

I think you will find things will change after the election, rates will rise faster than that, although I dont think they will go up very high.

VIGILANT22

They will most certainly rise as will criteria change ... many people on svr's will be caught up with ltv's which will be lowered for better deals ...Nationwide is a prime example of this ...they have changed almost all the criteria for new borrowers that existing borrowers can enjoy....It is difficult now for anyone above 70% to qualify for a Nationwide mortgage...as income multiples have changed also....some are 2.5%......and of course incentives may be removed and arrangement fees??

flammable999

Dan_1976 wrote: »

I think you will find things will change after the election, rates will rise faster than that, although I dont think they will go up very high.

What do you think will happen with a hung parliament? I think if that happens, both parties will be wary to do anything signficant.