Anyone remortgaging and NOT fixing??

Rowbo

We are just at the end of our 1.24 variable deal with tesco. We have always chosen variable 2 year deals and its worked out very well for us with rates mostly dropping. But i'm now unsure what affect the current political state of our country is going to have on rates and am considering a fixed 5 year deal.

Is anyone not doing this? Anyone feeling more confident than me? And what is this based on?

Thank you!

Richard_Pia

There is certainly a strong appetite for longer term fixed deals at present. It's difficult to know what the future holds and if you have concerns about rates increasing then a fixed may be for you.

Some tracker/variable rate deals do provide more flexibility, however, such as no early repayment charges, so it is very much dependent on your own circumstances to ascertain which would be better for you.

Additionally, you should consider what length of fixed rate best suits your circumstances, as you may not want to be tied into a longer term deal if you need to review in the short term for such things as a house move, or some debt repayments dropping off.

user1168934

I am going for a 2 year tracker as soon as my current 5 year fix is expired but this is purely because I need to flexibility to move if I have to in the near future and I don't want to pay ERC if that happens.

robatwork

Actually a good question because experts often recommend fixing as it provides nice sound bites like "certainty of knowing your future payments" and they can't be called out on a wrong recommendation in 5 years' time.

I've never heard an expert recommend a variable or tracker, other than in the specific example as above if you know you're likely to move within 2/5 years.

Rowbo

Thanks all. Well we have no plans to move just yet (although my rightmove addiction may give a different impression!). My head says that rates wont rocket anytime soon but my head and British politics don't seem very well aligned right now. Hmmm, its a tricky one!

btcp

I just moved to tracker after 6 years on fixed. My choice was driven by no early repayment charge as I seem to overlay a lot and want to get rid of the mortgage faster. My mortgage payment is relatively low and I Should be able to afford the rate increase if the economic situation will move that way.

Dandytf

Seriously considering 2 year tracker when 2 year fix ends from 2nd Feb'
I want to avoid ERC'S as I could be selling and moving to either Council or Private rent.
Think I'll just about manage with BOE rate rises if they aren't too large when they do rise