Fixed Term Mortgage ending in Jan 24

Curlie028

With interest rates "high" atm, are folk opting for a 2yr new fixed term, in the hope the rates will begin to fall again by 2026?

coypondboy

think trackers are more popular with no ERC or arrangement fee

ACG

I think its a lot more split at the moment. Historically I have done more 2 year fixed rates than 5. People only tended to opt for 5 year fixes early-mid last year or if affordability was a problem and they had no choice. 

However the last 12 months I think it is 50/50. The 2 year deals are more expensive but with rates expected to drop some people are taking the hit in the hope they can reap the rewards in 2 years. other people are going with 5 year fixes as rates have jumped that much it is making it more affordable for them. 

I am doing a couple of variable rates with no ercs, but not for cost reasons, its usually because people are planning on moving and it gives them the flexibility. As they usually come with £999 arrangement fees, it is rarely that they will be cheaper. 

clueless_but_curious

ACG said:

I think its a lot more split at the moment. Historically I have done more 2 year fixed rates than 5. People only tended to opt for 5 year fixes early-mid last year or if affordability was a problem and they had no choice. 

However the last 12 months I think it is 50/50. The 2 year deals are more expensive but with rates expected to drop some people are taking the hit in the hope they can reap the rewards in 2 years. other people are going with 5 year fixes as rates have jumped that much it is making it more affordable for them. 

I am doing a couple of variable rates with no ercs, but not for cost reasons, its usually because people are planning on moving and it gives them the flexibility. As they usually come with £999 arrangement fees, it is rarely that they will be cheaper. 

Also the variable rate premium (or whatever the jargon is) is much skinnier than it has been.

And anyway, who hedges anything when the price is high?  Nobody