Should I change to 5 year fixed from 2 year?

nekr0mantik

Thrugelmir said:

nekr0mantik said:

Thrugelmir said:

nekr0mantik said:

If BoE rate is 7% say in 2024 then even remortage to new lender wont be less then 2.08%.

If this was the case. The fixed rates on offer will exceed 8%. In an era of rising rates the longer you fix for, the greater the insurance against unwelcome and unexpected surprises. Fixing at least means one is able to budget with certainty. 

yup so the question is how likely is it in 2 years that 5 year fixed at 80 LTV will be less then 2% interest

What's the potential downside if you make the wrong call?  At the moment your new rate is only 0.22% below 2%.  That's less than one 0.25% rise in BOE base from 0.5% to 0.75%. Broader market forecasts are looking at BOE base in the region of 1.5% to 2.25%. by the end of 2023. 

yeah true

will speak to my broker

Thrugelmir

nekr0mantik said:

Thrugelmir said:

nekr0mantik said:

Thrugelmir said:

nekr0mantik said:

If BoE rate is 7% say in 2024 then even remortage to new lender wont be less then 2.08%.

If this was the case. The fixed rates on offer will exceed 8%. In an era of rising rates the longer you fix for, the greater the insurance against unwelcome and unexpected surprises. Fixing at least means one is able to budget with certainty. 

yup so the question is how likely is it in 2 years that 5 year fixed at 80 LTV will be less then 2% interest

What's the potential downside if you make the wrong call?  At the moment your new rate is only 0.22% below 2%.  That's less than one 0.25% rise in BOE base from 0.5% to 0.75%. Broader market forecasts are looking at BOE base in the region of 1.5% to 2.25%. by the end of 2023. 

yeah true

will speak to my broker

Meant to say earlier that the next BOE meeting is later this week. Watch this space as they say.