Fixed Rates and Pending Interest Rates

Ashingtonian

ShowUsTheMoney wrote: »

2.19% always sounds attractive but it only takes the base rate to go up 0.5% .........and then it could be a different picture. It just depends on your own personal circumstances, but having seen what raising rates can do, I would rather have the security of a low fixed rate. Already seen that the fixed rates have been increased by some lenders in the last two days.

I did a bit more looking and turned up a 5 year fix with the Nationwide @ 2.44% with no fees at all. Applied for it, fingers crossed I get it.

ShowUsTheMoney

Nice one! I also looked at the nationwide but settled on the tsb. Both seemed very similar but the tsb edged it for me as it offered me that bit more flexibility on the 10 year that I was looking for.

getmore4less

ShowUsTheMoney wrote: »

2.19% always sounds attractive but it only takes the base rate to go up 0.5% .........and then it could be a different picture. It just depends on your own personal circumstances, but having seen what raising rates can do, I would rather have the security of a low fixed rate. Already seen that the fixed rates have been increased by some lenders in the last two days.

having a lower rate means overpayments are possible, they give room for a bigger jump in rate, the longer they are lower the more you overpay and the high the rate can go before worse off.

Many forget to factor that into the analysis

ShowUsTheMoney

Definitely factored it into the decision I made and as always it comes down to personal circumstances and what's right for you at the time. I've experienced both low rates on trackers and high rate's on a fixed 7.99% mortgage in the past, so I am really pleased with 3.19% fixed for 10 years with the option of no early repayment charges at the 5 year point. I'm not planning on moving, I like knowing what my payments will be and I can plan for overpayments as and when I want to.