Time to lock in?

pacemaker1000

Crystal ball time again 
top bonds now 5.6% whether over 1 or 5 years pretty good

VNX

Can’t see us not breaching 6pc (on one and two year) from where we are now and how quickly we have got here. 

But as we all discuss, the longer you wait, so you lose by waiting and how long is the wait and how high will rates go, nobody knows. 

It’s all very personal. 

Personally, next week I will lock in, I won’t lock in at the top but that’s fine.

Locking in at minimum of 5.8 on a two year and 5.6 for a five year I don’t think I’ll lose any sleep on those. 

pacemaker1000

But for how long?

DietIrnBru

Been discussed elsewhere. Summary: spread your cash over several fixed rate accounts that lock in cash 1-2 years - that way it’s a law of happy averages.

If you don’t have a substantive large amount of cash - it’s an intellectual exercise and you’d be better opening a regular saver. 

If you’re willing to lock away cash for five years then you’d be as well to consider investing it rather than letting inflation work its magic wearing value away. 

Swipe

2 more hikes forecast to take the BOE rate to 5.5%

https://www.reuters.com/markets/rates-bonds/bank-england-take-bank-rate-550-over-next-two-meetings-2023-06-26/

housebuyer143

I think we have a little longer before the peak. The second Boe don't make a base rate rise or inflation heads downward I think I will start fixing. 

Frequentlyhere

UK gov bond yields topped out in the middle of this month, and swap rates a week later, and both have since been gradually softening.

Obviously that could reverse, but after a series of recent rises my personal gut says that this week will be the best it'll be for a while (not a long term forecast!). The usual table toppers seem to come out to play on Weds/Thurs and a couple on Friday.

I don't really play this game much though - I usually wait until the Thursday of the week I have some money available again and then plonk it in the best 1 year rate going with a provider I like. I spread out the deposits over the year so I never particularly "win" or "lose" anyway, just gradually move up (and down).

Oh, and the other thing of course is you can hedge your bets a bit by opening one speculatively with a 7 or 14 day funding window and see whether that rate is still the best on offer by the end of the deposit window..

bristolleedsfan

https://twitter.com/faisalislam/status/1673700753779613698

"NEW 2 year UK gilt now at 5.24% new 15 year high, half a %age point above post mini budget peak. markets now see 70% chance of rates over 6% by end of year"