3.89% five year fix

7sefton

Hi everyone

My Santander deal ends on 3rd September and I’ve bagged a 3.89% five year fix as part of their product switch service.

I will have £690k outstanding on a £1m property. 

I’m aware this is very competitive at the moment - certainly can’t be bettered by other lenders.

However I’m nervous that rates will start to come down around summer, just after my fixed rate is locked in. The obvious alternatives are go onto a two year fix or a variable rate in the hoping of fixing for less later down the line. But both are more expensive in the short term.

Just wondering - what you do / think / say?

Thanks - really appreciate any thoughts!

BarelySentientAI

Why are you nervous about it?  Because you're locking into something that you can't really afford, or just because you might not be on the absolute cheapest rate throughout the lifetime of your mortgage?

If it's the latter - you never will be, so no point worrying about it.

How much money do you fancy spending on this 'hope' that there will be lower fixes?

7sefton

I’m obsessed with getting the lowest price wherever I can, and a mortgage is the biggest cost each month. Hence my asking

All very affordable though 

Windofchange

Can you not take the deal and then if something better comes up over summer cancel it and get the new one? My understanding is that taking a deal doesn’t become binding until the term starts - so until September. I also agree however with the above that you’ll likely never time things perfectly to get the lowest rate, and realistically what are you going to save? Maybe you get 3.69% in summer and save a few hundred quid over the five years. Can’t see rates coming down any more than 0.25% between now and September. I’d just sign up - that’s a good rate!