To fix or not to fix!

Jellybean2468

Our new mortgage will start on the 1st July, was really hoping the rates would come down over the last couple of months but no joy and thanks to the middle east conflict they're creeping up slightly.

Managed to fix a couple of months ago with existing provider at 4.88%, if I'd have been quicker off the mark I could have got it at 4% 😩

I'm tempted to go into the variable rate of 4.74% in the hope the rates come down if Iran and Israel settle things down soon. But I'm very risk averse so probably better to stick with the fixed rate.

Are you fixing or tracking?!

Jellybean2468

Appreciate I'm leaving myself open to crystal ball comments here but I'm curious to see what people are planning for mortgages coming up in the next few weeks!

Emmia

We're not looking for a new product, but if we were I think we'd be fixing again.

RelievedSheff

We were lucky with timing and got a 5 year fix in January at 4.04%.

Can't see rates coming down much more from their current levels in the next year or so. I think we will be in a period of stability with mortgage and BOE rates.

Sherlock33

Just fixed for 2 yrs at 4.89% - being able to budget for this amount for 2 years is more important than the little I may save if rates went down (only got 17K left on the mortgage)

ACG

I have done more variable rate mortgages since April than I have in the last 5 years.

Generally speaking variable rates are around 0.6-0.8% lower than fixed rates when I am doing the research. That means there would need to be around 3 rate rises (if not more) before clients are financially worse off.

The bank of england have already come out and said inflation will go high, but that alone will not be a reason to raise the base rate (or at least that is how I interpreted it). However, in your case, the difference is 0.14% which means even 1 rate rise within the next 12 months and your worse off. So the risk of you being worse off is much higher (although I still think unlikely).

But realistically, how much are we talking? £5 a month and your talking about £120 over 2 years. £120 for an insurance policy isnt the end of the world.

Jellybean2468

Thank you very much - some really good points here that have put the fixed option into a good perspective! I will live in hope for the June Bank of England announcement otherwise take that fixed rate!

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/82031832#Comment_82031832

I wouldn't pin you hopes on a BOE rate cut next week I'm afraid.

booksandbikes

We have fixed for 3 years at 3.74%. We were very lucky to lock in early on when things kicked off in Iran so we were fortunate to get below 4%. Our previous rate was 1.59% so the jump will sting.

Jellybean2468

https://forums.moneysavingexpert.com/discussion/comment/82033523#Comment_82033523

You got a great rate there, I'm kicking myself for not sorting this straight away 6 months ago when I could have locked on a much better deal. I have a day to decide whether to risk the 4.28% tracker which saves me about £60 a month in the hope that it will stay low and I may get a better fixed rate eventually, or stick with the 2 year 4.88% fixed rate I secured.