Are we doing the right thing?

chelseablue

Our 5 year fixed rate of 1.79% ends on 30th April 

The best fixed rate our broker has found us is 4.04% with NatWest, fixed for 5 years. Will be £923 a month which we can afford 

I'm 39 so just about remember the days of higher rates so maybe going on long term averages 4.04% isn't so bad and have the security of knowing what we have to pay each month. 

Been reading a lot that the general thoughts are that interest rates may come down next year so am now doubting whether we should be fixing for less time or even going for a tracker? 

RelievedSheff

Our fixed rate is up in a few years and we have already decided that if we can get a fixed rate of around 4% at that time then we will fix it for the remainder of our term which will be 10 years.

Interest rates are not going to be going back down to the emergency rates we have seen over the last 10 years or so.

dimbo61

Wow well done on signing up to a 1.79% deal 5 years ago.
As an old man over 60 I remember paying 15% on a mortgage and did not bat an eyelid at the time.
Trying to work out what  the BOE base rate and mortgage rates might be in 2024/2025 is anyone's  guess.
What you have in front of you is Security for another 5 years.
If you worried about Interest rates and your mortgage debt and future plans then Overpay BIG style 
Live the MSE way ( cheaply and getting value for your hard earned money )
Your mortgage is for many people the biggest debt they will every have so clearing it  early gives you options in later life.
Having a paid for home means you can enjoy a cheaper retirement and your pensions and savings are for enjoyment not clearing debts

Zerforax

I don't think you can just look at historical interest rates as they need to be looked at in the context of the time. Let's not forget that most of the Western world had low interest rates for like a decade. It won't just be the UK housing market which has grown rapidly off the back of low interest rates.  Would be a huge negative financial impact of increasing rates to 15% now - we only moved up to 4-5% and we've seen a couple of banks go under!

MFWannabe

chelseablue said:

Our 5 year fixed rate of 1.79% ends on 30th April 

The best fixed rate our broker has found us is 4.04% with NatWest, fixed for 5 years. Will be £923 a month which we can afford 

I'm 39 so just about remember the days of higher rates so maybe going on long term averages 4.04% isn't so bad and have the security of knowing what we have to pay each month. 

Been reading a lot that the general thoughts are that interest rates may come down next year so am now doubting whether we should be fixing for less time or even going for a tracker? 

Have you been given the rate for a 2 year fix? 

If not I would find out what that is and then make a decision based on that 
It is down to personal choice; i like knowing exactly how much I will be paying and personally don’t think rates will come down much below 4% for quite some time but I could be wrong 
it’s a gamble 

chelseablue

MFWannabe said:

chelseablue said:

Our 5 year fixed rate of 1.79% ends on 30th April 

The best fixed rate our broker has found us is 4.04% with NatWest, fixed for 5 years. Will be £923 a month which we can afford 

I'm 39 so just about remember the days of higher rates so maybe going on long term averages 4.04% isn't so bad and have the security of knowing what we have to pay each month. 

Been reading a lot that the general thoughts are that interest rates may come down next year so am now doubting whether we should be fixing for less time or even going for a tracker? 

Have you been given the rate for a 2 year fix? 

If not I would find out what that is and then make a decision based on that 
It is down to personal choice; i like knowing exactly how much I will be paying and personally don’t think rates will come down much below 4% for quite some time but I could be wrong 
it’s a gamble 

There’s a couple of 2 year fixes they offer, at the moment they are 4.49% and 4.64% 

Leaning towards going for the 5 year. And will be overpaying, didn’t really do that when the rate was 1.79% as a lot of the time I could beat it in a savings account

JohnJ76

not going to offer you financial advice or try and predict the future but when faced with a decision i tend to go with the one that will help me sleep easier at night. no point worrying about what ifs, maybes etc. we 'lost out' with one of our fixes pre 2008 and then rates came down and i could have saved a few quid each month but when i renewed rates were even lower so over the course of a mortgage these things have a way of averaging themselves out. 

MFWannabe

chelseablue said:

MFWannabe said:

chelseablue said:

Our 5 year fixed rate of 1.79% ends on 30th April 

The best fixed rate our broker has found us is 4.04% with NatWest, fixed for 5 years. Will be £923 a month which we can afford 

I'm 39 so just about remember the days of higher rates so maybe going on long term averages 4.04% isn't so bad and have the security of knowing what we have to pay each month. 

Been reading a lot that the general thoughts are that interest rates may come down next year so am now doubting whether we should be fixing for less time or even going for a tracker? 

Have you been given the rate for a 2 year fix? 

If not I would find out what that is and then make a decision based on that 
It is down to personal choice; i like knowing exactly how much I will be paying and personally don’t think rates will come down much below 4% for quite some time but I could be wrong 
it’s a gamble 

There’s a couple of 2 year fixes they offer, at the moment they are 4.49% and 4.64% 

Leaning towards going for the 5 year. And will be overpaying, didn’t really do that when the rate was 1.79% as a lot of the time I could beat it in a savings account

I’d be inclined to go with the 5 year fix if it were me 

lozenlady

We have just remortgaged onto a 5yr fix at 4.13%. For us it is affordable and worth the piece of mind.

chelseablue

Thank you all, we've decided to go with the 4.04% for 5 years 

chelseablue

Just seen that NatWest have lowered their 5 year fix to 3.94% so our broker is going to switch us to that