To fix or not to fix ?

Scotsguy

I'm on a BMR of 2.5% for £50k and 2.49% tracker fro £30k ( home improvements). Should I hold fire or look to see if I can fix now before rates go up?

stator

If you don't think you could afford a large increase in rates but you can afford to fix now then you should.
In my worthless opinion they aren't going up significantly for a while but when they do start going up the fixed rates will all go up more than you would expect.

Typhoon2000

Fixed rates already reflect what the market thinks mortgage rates will be in the future. So by fixing you are hedging against the unexpected, rather than what the market expects. Tracker rates follow base rates but don't assume that mortgage rates and standard variable rates will rises or fall by the same amount the base rate changes by.

Thrugelmir

Typhoon2000 wrote: »

Fixed rates already reflect what the market thinks mortgage rates will be in the future.

Fixed rates reflect the fact that some lenders still have funds to utilise from the Funding for Lending Scheme. The sign in the tail can be seen from the follow on rates.

dimbo61

Hi how long do you want to fix for ?
What is your LTV loan to value
Have you looked at your existing lenders website for fixed deals for existing customers ?

Typhoon2000

Thrugelmir wrote: »

Fixed rates reflect the fact that some lenders still have funds to utilise from the Funding for Lending Scheme. The sign in the tail can be seen from the follow on rates.

True. Some banks like HSBC did not take part in funding for lending and have some of the best fixed rates and follow on rates.

Thrugelmir

Typhoon2000 wrote: »

True. Some banks like HSBC did not take part in funding for lending and have some of the best fixed rates and follow on rates.

Meeting their lending criteria and target market of customer excludes many though.

Scotsguy

Thanks! Ltv is 41%. Note Nationwide is offering 2.49 fixed for 4 years same as what I'm paying .

dimbo61

So you have £80,000 of mortgage debt at 2.49/2.5% on a Variable rate which will go up once the BOE starts to rise and your Lender Nationwide has a 4 year fix at 2.49% for existing customers with NO FEES!!
What you need to look at is will the Bank of England Base rate rise by 1.5/2% in the next 4 years?
Could you also overpay ?