Would you touch a discount variable rate atm?

GoonerByron

Hi all,

Know no one has a crystal ball but thought I’d ask in my situation..

I currently have a discounted variable mortgage agreed with Furness at 1.85% (4.44% discount from their variable rate of 6.29%).

I have been quite impressed that on the last 2 0.5% BOE interest rate rises they have only increased their variable rate 0.25% and then 0.2% on this last one.

The best fix I can get is 3.81%

My thinking is that if they are only passing around half of the BOE rate onto their variable rate, even if the BOE rate peaked to 6% I might only be looking at a peak
discounted rate of 3.6% or below.

Lots of Ifs and Buts but just looking to get some opinions of what you’d do in a similar situation.

Thanks

km0193

Posted a thread on this forum about this exact topic yesterday. 

I am up in May 2023 and believe the is the likeliest route I will take. It's a gamble, however so is any decision at present (esp those who need to wait until next year) 

simon_or

There's a great thread discussing this

https://forums.moneysavingexpert.com/discussion/6390384/will-2023-be-a-good-time-to-get-a-discount-mortgage#latest

housebuyer143

The lenders variable rate can change to anything really and you cant predict of control it. I would therefore go with a fixed as your discount is quite high.