One year or two year fix ? (September 2020)

neilharg149

Looking at a new fix at the end of the month but cant decide whether to pay a little bit extra and go for w2 year fix ???

matelodave

In the end its your decision - no one on here has a better crystal ball than yours so you really have to do the sums and work out how much extra it will cost you to hedge your bets over the next 24 months.

Neil_Jones

neilharg149 said:

Looking at a new fix at the end of the month but cant decide whether to pay a little bit extra and go for w2 year fix ???

Do what you think is best.

If prices go up, you'll be quids in.

If prices go down and go down far enough that you'll save more than your exit fee(s), you can always move.  A "fix" doesn't mean you're stuck with Dalek Energy for the next 24 months come hell or high water...

brewerdave

On my experience of the last few years, it hasn't been worth fixing for more than 12 months, because when I've been looking, the premiums charged for 24/36 month deals have been £100s more pa  - but it is all a gamble--I'm sure some will claim they have snatched a long fix at the right time !!

Biggus_Dickus

brewerdave said:

On my experience of the last few years, it hasn't been worth fixing for more than 12 months, because when I've been looking, the premiums charged for 24/36 month deals have been £100s more pa  - but it is all a gamble--I'm sure some will claim they have snatched a long fix at the right time !!

I agree;...plus, you’re also gambling that your chosen energy company will still be trading a year or so down the line. Recent history would suggest it’s not exactly a safe bet.

Talldave

It may be a gamble, but the most you lose is the exit fee incurred in order to switch away from your fix to something cheaper.  And you don't really "lose" it, it simply comes out of the savings you would have made if you could have jumped ship for free.  The more important thing is not to dither once your fix can be beaten, because the more months you spend at the cheaper rate, the better.

brewerdave

Biggus_Dickus said:

brewerdave said:

On my experience of the last few years, it hasn't been worth fixing for more than 12 months, because when I've been looking, the premiums charged for 24/36 month deals have been £100s more pa  - but it is all a gamble--I'm sure some will claim they have snatched a long fix at the right time !!

I agree;...plus, you’re also gambling that your chosen energy company will still be trading a year or so down the line. Recent history would suggest it’s not exactly a safe bet.

Talldave said:

It may be a gamble, but the most you lose is the exit fee incurred in order to switch away from your fix to something cheaper.  And you don't really "lose" it, it simply comes out of the savings you would have made if you could have jumped ship for free.  The more important thing is not to dither once your fix can be beaten, because the more months you spend at the cheaper rate, the better.

Also depends when you start on the new long fix - eg start on one now before the Winter and if it is a mild one ,then you can have spent a lot of extra £s before you decide to jump away.

Stratus

You also need to compare figures against variable tariffs and also dual and separate fuel suppliers. For me, all the cheapest gas tariffs are 12 month fixes and the 24 month and variable tariffs are 10% more. Electricity sees a 10% premium for fixes over variable tariffs. Currently sitting with 12 month Zog tariff for gas and just signed up to variable electricity tariff with Neon Reef. I'm generally feeling the economy isn't going to be booming anytime soon so unlikely to be great demand on energy so prices could remain low for some time.

[Deleted User]

I asked something similar a few days ago.

The conclusion i drew:-  Going forward, unless i know for definate that prices are going to rise significantly, I'll be sticking to 1 year.

teddysmum

I'm most of the way through a 3 year fix with nPower  (in the process of changing to E.on  ). I have never thought along fix was worth paying more for, after considering the total cost, but this one was cheaper than other fixes on nPower's and other sites. (I think it must be a one off for me.)