What mortgage rate would you be happy to fix at following the budget? 20 November 2022 at 8:20PM edited 20 November 2022 at 9:21PM in Mortgages & endowments 22 replies 3.2K views

Mish_Mash

Interested to see what people would feel comfortable fixing their mortgages at for 2/5/10 year deals (following the recent budget, BoE statement regarding interest rates potentially only hitting 4.5% and the continued inflationary pressures.) 

Appreciate current rates are not ideal. But hypothetically, what rate would sway you to fix? 4%,3.5%,3%? Or would you hold on for lower?

housebuyer143

I'm not happy to fix at any of the current rates. I'll stay on my tracker.

muffinek

My head is really spinning on this one. My fix is ending at the end of Apr and looks like currently available deals are around 5%. My mortgage advisor recommends tracker as he thinks rates will come down later. I would love to fix but that would mean paying almost £700 a month more than I do now. This is just ridiculous. 

Mish_Mash

muffinek said:

My head is really spinning on this one. My fix is ending at the end of Apr and looks like currently available deals are around 5%. My mortgage advisor recommends tracker as he thinks rates will come down later. I would love to fix but that would mean paying almost £700 a month more than I do now. This is just ridiculous. 

Agreed. Oh for a crystal ball. 

MFWannabe

Ours is not up for another 3 years but if it was I wouldn’t fix at anything higher than 4%
Id take chances with a tracker as I believe rates will stabilise and then drop, but I don’t think they’ll ever go back to the really cheap rates 

muffinek

Why wouldn't they though? The main reason was had low rates for such a long time was due to 2008 recession. This one is expected to be worse and longer. I understand we need to get inflation under control but one this is done what's stopping BOE from doing the same again to boos economy? 

RelievedSheff

It is 3.5 years before we have to remortgage again but we would be happy to fix at anything sub 4%. We will have a low LTV of less than 50% even if house prices drop 20% and 10 years remaining on our term. We would be looking to fix for the remainder of the term of the mortgage. 

snowqueen555

I'm hoping Nationwide's drops below 5% by the time I complete, it went down from 5.39% to 5.24% so pretty much minimal.

GiantTCR

I recently secured a 2 year fixed at 4.99% with Nationwide.

I don't know what to expect but I didn't want to take any chances so a tracker was out of the question immediately.

simon_or

I'm not in the market right now for a capital repayment mortgage but if I was -

2 years - tracker at bank rate plus 0.5% or a much lower discounted variable rate. I don't see the point of fixing for 2 years and paying for the premium over a variable as I'd still be exposed to unknown rates in 2 years time

5 years - less than 4%

10 years - less than 3%

IAMIAM

I think barclays has the best solution at the minute....5 year tracker at 0.6 above BOE. Ditch and fix when rates plummet again within the 5 years penalty free