Referendum Result - Should I fix?

unclearengineer

A part of my mortgage is tracking at 0.84% above base rate (effectively 1.34%) - Should I fix today whilst HSBC are offering the 2 year fix?

Now that the Referendum is over I'm anticipating a bit of volatility, however I cant see how interest rates will go up if we drop into a recession. However I doubt they will go down.

I imagine this mornings movements on the pound will settle out over the next few days.

Any thoughts?

Mortgage_724433

What will happen to the bank of England base rate no one can predict, although you're right to question if now is the time to fix.

I would suggest speaking with a whole of market mortgage broker (who also considers direct deals such as HSBC), as they'll be able to assess your situation and provide you with appropriate advice.

FinallyDebtfree2017

I would , I fixed for 5 years. Interest rates are at their lowest.
In my opinion they can only go up.
Unfortunately house prices may also go down...

sitesafe

My mortgage deal is approaching and end so I have moved onto a new 5 year fixed deal 2.79 fee free rather than a tracker 1.99 + base =2.49 with 999 fee... I know I've felt trapped on a 5 year fix in the past and last night I was going to go for the tracker but I think that the brexit swayed my decision...when i did some comparisons there wasn't much difference to the overall cost of tracker and the fixed and if I overpaid 10 per cent per year they all ended around about the same time.

ScoobyZ

I fixed. Had 1.74% tracker, moved it to 1.74% fixed 2 years, no fee with nationwide.

Did it about 5.30am this morning online.

Thrugelmir

Interest rates may well rise in the medium terms (after 2018) as the BOE Funding Scheme draws to a close and lenders start repaying the money advanced. Then relying on the wider markets to provide the necessary funding ongoing forward.

Giving up a tracker rate may not be a wise decision if BOE base rate remains low.

Dandytf

Thrugelmir wrote: »

Interest rates may well rise in the medium terms (after 2018) as the BOE Funding Scheme draws to a close and lenders start repaying the money advanced. Then relying on the wider markets to provide the necessary funding ongoing forward.

Giving up a tracker rate may not be a wise decision if BOE base rate remains low.

I hope you are correct.

Today's brexit decision was a shock to myself at least.

I was confident I could swap to a 10yrs fix mid 2017 when my existing 5yr fix ends.

After this morning i'm not sure at all.

Too much uncertanty the next few months and years.😩