Should I fix now?

sandyback

For one reason or another I have been on my banks standard rate now for many years.  I have 4 Years and 4 Months left and it's currently at 4.99%.

I can fix for 2 years today with no fees @ 4.2%, Is this worth doing on the assumption interest rates are only going to go up with very little chance of them going down?

Or as I can still afford the repayments even if the rates go up another couple of percentage should I just sit it out for now?

Thoughts?

armadilloF150

In your position, I would be fixing.

Rates are almost certainly going to continue up in the short term. The BoE has already said as much: They intend to keep increasing the base rate in increments, for as long as it takes to get inflation back to 2%.

Even if rates come back down again, it seems unlikely that the average you're paying out currently will be less than 4.2% over the next 2 years. Especially if the base rate (currently 2.25%) spikes up to >5% as the markets are currently predicting.

FashionHeart

sandyback said:

For one reason or another I have been on my banks standard rate now for many years.  I have 4 Years and 4 Months left and it's currently at 4.99%.

I can fix for 2 years today with no fees @ 4.2%, Is this worth doing on the assumption interest rates are only going to go up with very little chance of them going down?

Or as I can still afford the repayments even if the rates go up another couple of percentage should I just sit it out for now?

Thoughts?

Definitely fix it due to the current financial market. Interest and mortgage rates will continue to increase.