Fix or variable?

KatieXZoe

Hi, I just moved from a 2 bed rented property into my first home, 3 bedroom house. Is well insulated with new windows and doors etc and cavity wall insulation. Currently just me and my partner and cat in property. We go out to work 4/5 days per week so are mostly home evenings and weekends. 

I need to set up the new gas and electric for the house, and have read Martin's guide which suggests that possibly fixing now might be worth considering now energy prices have dropped slightly. 

I am aware that nobody has a crystal ball and can predict what they will do over winter but am I right to assume they will increase? 

Given this, if in my position, would you fix now for a year or go onto variable tariff? 

Thanks, 

First time home buyer with very little experience on this  

Chrysalis

Given the fixes on offer are so close to the variable and thats predicted to drop again in 3 months, I would only consider a fix if it has no exit fee.

CSI_Yorkshire

KatieXZoe said:

I am aware that nobody has a crystal ball and can predict what they will do over winter but am I right to assume they will increase? 

If you are aware that nobody can predict what will happen, how could we possibly know whether your assumption is right or wrong?

Part of the benefit of a fix is certainty - your price will be the same - whether your assumptions are right or wrong.

Far too many people take a fix and then if it wasn't the absolute cheapest option with hindsight, somehow decide they made the 'wrong' decision.  They didn't.

Ayr_Rage

Don't forget you need to set up an account with the incumbent supplier, until that is done you cannot change to another company.

Edit : The fix being offered by my supplier is only marginally different from their current SV rate so do look very carefully at what may be on offer.

KatieXZoe

CSI_Yorkshire said:

KatieXZoe said:

I am aware that nobody has a crystal ball and can predict what they will do over winter but am I right to assume they will increase? 

If you are aware that nobody can predict what will happen, how could we possibly know whether your assumption is right or wrong?

Part of the benefit of a fix is certainty - your price will be the same - whether your assumptions are right or wrong.

Far too many people take a fix and then if it wasn't the absolute cheapest option with hindsight, somehow decide they made the 'wrong' decision.  They didn't.

I suppose I'm not asking for a 'right or wrong' per se, more... What would you do in my shoes/ what have others done I thero situation knowing what we currently know. 

Nobody likes surprises and at the moment all fixes I am seeing are very close to those offered in variable rates. That being said I do have a feeling they may go up in the winter again with increased demand 

Alnat1

KatieXZoe said:

Nobody likes surprises and at the moment all fixes I am seeing are very close to those offered in variable rates. That being said I do have a feeling they may go up in the winter again with increased demand 

If this is your feeling and you prefer certainty, then take the fix. It may cost you a little more in the autumn compared to SVT if prices drop slightly but you'll probably make that back if SVT goes up in January.

victor2

Chrysalis said:

Given the fixes on offer are so close to the variable and thats predicted to drop again in 3 months, I would only consider a fix if it has no exit fee.

^^This^^

Some suppliers have no exit fee on their fixes if you switch tariff but stay with them. If available, that would at least give you the free option of going back to the SVT if it falls, as is widely expected later this year.

bristolleedsfan

victor2 said:

Chrysalis said:

Given the fixes on offer are so close to the variable and thats predicted to drop again in 3 months, I would only consider a fix if it has no exit fee.

^^This^^

Some suppliers have no exit fee on their fixes if you switch tariff but stay with them. If available, that would at least give you the free option of going back to the SVT if it falls, as is widely expected later this year.

As far as I know just British Gas and Eon Next fall into that category.

matt_drummer

KatieXZoe said:

CSI_Yorkshire said:

KatieXZoe said:

I am aware that nobody has a crystal ball and can predict what they will do over winter but am I right to assume they will increase? 

If you are aware that nobody can predict what will happen, how could we possibly know whether your assumption is right or wrong?

Part of the benefit of a fix is certainty - your price will be the same - whether your assumptions are right or wrong.

Far too many people take a fix and then if it wasn't the absolute cheapest option with hindsight, somehow decide they made the 'wrong' decision.  They didn't.

I suppose I'm not asking for a 'right or wrong' per se, more... What would you do in my shoes/ what have others done I thero situation knowing what we currently know. 

Nobody likes surprises and at the moment all fixes I am seeing are very close to those offered in variable rates. That being said I do have a feeling they may go up in the winter again with increased demand 

The chances of energy prices reducing much are slim and the amount you would save by not fixing is pretty small.

The risk is that prices rise considerably and that will expose you to higher costs.

There is very little to gain by not fixing and potentially much more to lose.

On average use, is it worth the gamble not to fix just in case you save, what, £100 at most?