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MSE News: Get a mortgage now if you want to fix

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"Now is still the time to get a mortgage if you want to fix, despite base rate being unlikely to rise any time soon..."
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Get a mortgage now if you want to fix

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Comments

  • jam
    jam Posts: 122 Forumite
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    The obvious reason not to fix is if you're on a cheap rate now and don't expect fixes to become more expensive soon.

    For example, leaving a low rate now for a cheap 10 year fix would result in 10 "cheap" years, but if rates are high in 10 years could then see you having (say) 5 expensive years.

    The alternative is 5 years now on a low rate, then (possibly) a cheap 10 year fix so 15 good years.

    I'm not saying this is what will happen, or on these timescales but there are clearly good reasons not to fix even if you think rates aren't going to get cheaper.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    jam wrote: »
    The obvious reason not to fix is if you're on a cheap rate now and don't expect fixes to become more expensive soon.

    For example, leaving a low rate now for a cheap 10 year fix would result in 10 "cheap" years, but if rates are high in 10 years could then see you having (say) 5 expensive years.

    The alternative is 5 years now on a low rate, then (possibly) a cheap 10 year fix so 15 good years.

    I'm not saying this is what will happen, or on these timescales but there are clearly good reasons not to fix even if you think rates aren't going to get cheaper.
    But the risk is that when you come to fix the fixed rates might have become more expensive. So you could end up with 5 cheap years followed by 10 expensive years.
    I'm not saying that that means everyone should fix, just that there is a danger in not fixing.
  • michaels
    michaels Posts: 28,139 Forumite
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    Mortage broker in 'now is the time to remortgage' shock!
    I think....
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
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    This advice from the broker who advised people to take out the biggest interest only mortgage they could a few years ago.
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