Rate switch now or wait???

Bulbs_23

I’m currently on a 1.6 rate ending in May.

My plan was to potentially leave this for a few months on tracker as from what I’ve heard rates may go down.

Now, jeez Louise!!! I’m in a panic as are lenders increasing their rates because of the current world situation?

If it looks like it does do I risk fixing it now, and for how long. It’s already an extra £130 if I do a 5 year fixed.

Any ideas welcome :)

Angelica123

No one has a crystal ball but it's very unlikely that between now and May that rates would drop anywhere close to the rate you are currently paying. So you will have to accept that no matter what, you will pay more than you did now.

How much do you value predictability and stability? Remember that with a tracker rates can go up as well as down. For most people, fixing for a period, and having a predictable monthly payment is the easiest for financial management. You can usually lock in a fix offer rate now, and then switch if a better rate comes up before remortgage.

amnblog

..and your Lender is?

ACG

Some lenders will allow you to pick a product now and change it again down the line - some wont.

Maybe check with them or your broker if you used one previously. Or as AMN says, if you tell us who it is we might be able to help.

Bulbs_23

thank you both, my lender in Barclays , I have 3 mortgages as I ported 2 ready to buy a new house with my partner.
2 at 1.6 end in May 45k and 54k £179 and £229

The other next year ends June 65k at 2.2 around 250 monthly.

Nasquerns

Honestly no one can time rates perfectly. If the extra £130 won’t wreck your budget, fixing for peace of mind isn’t the worst move - sleep is worth something too.

booksandbikes

I am in the same situation as you. I am at 1.59% with Barclays ending in May 2026. Originally I was going to wait for the next interest rate decision in a couple of weeks. However, I have gotten slightly panicked and so have done my switch this weekend. I've ummed and ahhed over 3.67% for 2 years or 3.74% for 3 years, and have gone with the latter.

However, I do still have the opportunity to change that until the end of May (easily done via the app) if rates improve and I want to rechoose. So probably best to provisionally lock in now, and then change later if you wish to.