Debate House Prices


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What way are mortgage rates going? How long to fix?

My current fixed-rate deal expires soon, so what do people think the mortgage future is going to look like?

Should I fix for 2/5 years assuming they're going to go up? Should I hang onto the standard rate for a few months to see if they'll drop?

I'm sitting at about 90% LTV so not getting a great deal anyway.
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Comments

  • Rinoa
    Rinoa Posts: 2,701 Forumite
    Herzlos wrote: »
    My current fixed-rate deal expires soon, so what do people think the mortgage future is going to look like?

    Should I fix for 2/5 years assuming they're going to go up? Should I hang onto the standard rate for a few months to see if they'll drop?

    I'm sitting at about 90% LTV so not getting a great deal anyway.

    Lenders fixed rate deals already take into account the likelihood of future base rate rises. It's unlikely anyone will be able to forecast better than the lenders themselves.

    However, current rates are historically low. They simply can't fall much lower but could rise significantly given the right conditions. So my choice would be to fix.
    If I don't reply to your post,
    you're probably on my ignore list.
  • Herzlos
    Herzlos Posts: 15,918 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Seems sensible. Fix for as long as possible?
  • andrewf75
    andrewf75 Posts: 10,424 Forumite
    Part of the Furniture 10,000 Posts
    am in a similar situation. I'm thinking fix as long as possible as they can only go up. I've noticed adverts for 10-year fixes (first direct) which is tempting as I could pay off the remainder in that time.
  • michaels
    michaels Posts: 29,133 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I can confidently predict that fixes will be a lot more expensive in the second half of next year as that is when my current deal expires :(

    This is not just the result of my circumstances but because the political winds are changing. The end of trying to live within or means as a country will lead to more expansionary fiscal policy which in theory means monetary policy can be less accommodating and in practice means higher rates due to the increased risk of holding an even more rapidly expanding UK debt mountain. Plus the 'traditional' wing of the Tory party now in the ascendancy is made up of the types who see low interest rates as bailing out profligate borrowers at the expense of thrifty savers. Hence Carney waivering in every direction and those lobbying for his job once he leaves coming out as true believers in 'real' interest rates.
    I think....
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why are rates going to drop further? Recent BOE action maybe the first trigger to cause some lenders to raise rates. Albeit marginally.
  • NewLlrd
    NewLlrd Posts: 12 Forumite
    Fix for as long as possible, with Brexit who knows what's going to happen with the economy. It might be more expensive but can you live with the uncertainty?
  • Dandytf
    Dandytf Posts: 5,073 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I was very happy since being through 2 yr fix@6.39 2009-2011 + 5.19 2011-2017-June.

    Was tempted with a 10yrs fix this time,though thinking of moving 2018 hence opted 2yrs fix@2.49

    I’ve enjoyed my move since Sept 2009, think maybe I’ll be renting next few years and choosing a nice flat.
    Replenished CRA Reports.2020 Nissan Leaf 128-149 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500 since returned to 1gb
  • Go for a fix, rates are not going to remain at historically low levels for ever.
  • padington
    padington Posts: 3,121 Forumite
    CBaker wrote: »
    Go for a fix, rates are not going to remain at historically low levels for ever.

    Come 2019 when we are in the thick of thick Brexit.
    With the economy going to hell and investment taking a massive turn away from U.K. PLC there is no way the Bank of England will chose then to raise interest rates.

    In the same breath, if Brexit goes ahead, the !!!! will be hitting the fan for years. Expect years and years of low interest rates.

    Saying that I fixed for 5 years because 1) the bloody high charges to renew 2) things are so cheap anyway, it makes the 1 in 10 chance I'm wrong on furture cheap or cheaper interest rates worth hedging against 3) Brexit will hopefully never happen.

    However I seriously doubt anyone taking a 2 year fix will regret it either.

    If things go well and EU offers a form of membership which can cap immigration and we have a refenerdum and we vote to stay in the EU, given the obvious horrific consenquences of leaving, expect rate rises to temper what will become a very hot property market, once again.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • You can tie yourself up in knots trying to second guess the economy; I fixed because I'm financially conservative and prefer the certainty. I might have "won"; I might have "lost", but I'm not going to spend any time stewing over it.
    They are an EYESORES!!!!
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