Jump or dont

kurgon

Hi
I am aware that a lot of the current posts follow a similar thread but would appreciate thoughts on the current issues around potential rise in rates.
I currently habe an outstanding balance of £59000 and am on an HSBC tracker (2.69% above base rate)
I am able to take a 5 year fixed deal at 3.99% with £99 fees.
At the current stage this would cost an additional £40 per month.
If the rates do not change in the near to relatively near future then I feel I would be foolish to jump, although the same mortgae with HSBC has already risen to 4.29%.
I had made my mind up to fix but then todays news about the 0.5% drop happened and it has really thrown me into a quandry.
I am able to afford my current mortgage and could potentially pay quite a bit more. Indeed, with the tracker we often overpay. I would only be able to overpay by 20% on the fixed rate, so there is also that to consider, although if savings rates rise I would more likely put the money in there and pay a lump sum at the end of the 5 years.
So many thoughts that I feel I am now drowning in them and any clarity or advice would be very welcome.

CloudCuckooLand

The GDP drop is thought to have deferred rate rises by 2 months. Obviously the market's opinion could shift if the revised ONS GDP figure is better/worse than this first estimate they have announced.

But the banks are already dropping decent deals and issuing higher ones - I don't see them backtracking and re-issuing the better products because of GDP figures.

You've got a smallish mortgage. So fees have an influence, too. If aside from rates, the banks pushed up fees, by the time you feel ready to fix, that could be a negative.

"Only overpay by 20%" - do you expect to have £12k to throw at it? Great. If you have more, use your ISA allowance and save a chunk for the next remortgage.

2.69%+base = 3.19%. For +0.8% you lock in for 5 years ?

I'd fix.

kurgon

I didn't think about the ISA allowance, have always taken any spare cash and thrown it at the mortgage.