Am I too cautious?

avantra

We are on a cheap tracker from First Direct at 1.79% and our monthly payments are £569. With the latest interest cut our payments are about to drop to £542/month.

I'm a concerned that with money printing and imports becoming expensive are we actually going to see inflation raised to a level where the BOE raises interest rates to make the money supply a tad more expensive. All feels a bit of uncharted territory.

I know it's all about approach to risk but I just wondered if it is a smart move to fix at 2.08% for five years with FD? This will make our payments £571/month. Am I too cautious?

We are surfing low rates with the tracker since 2009 and with a predicted promotion at work I wonder if it's the right time to fix. Really can't decide

nkkingston

I'd wait and see if the promotion materialises, and in the meantime just overpay. You might miss the absolute lowest fix (which I don't think we've seen yet, anyway) but you'll still be in a better position and save money overall.