Is Now a Good Time to Fix???

Corley

im not to sure what to do fix for 2 years, or stay on my discount variable rate, any advice would be grateful.

doodle_bug

Rates could go lower and arent likely to go up in the near future, we still have high rates compared to other countries. A friend of mine fixed last month at 4.75% with the nationwide for 5 years he's slightly lost out already but he's still more than happy with that rate. I'm on a tracker and since the drop I'm on 4.84% another fall and I'll be lower than his fixed rate but he knows exactly how much he's having to pay for the next 5 years and the payments are within his budget, it's a bit of a gamble so take a chance or fix and know what your paying.

KTF

What rate are you on at the moment?

Compare that (and the costs of moving) to the deals that are around at the moment then you will have your answer.

meanmachine_2

doodle_bug wrote:

Rates could go lower and arent likely to go up in the near future, we still have high rates compared to other countries. A friend of mine fixed last month at 4.75% with the nationwide for 5 years he's slightly lost out already but he's still more than happy with that rate. I'm on a tracker and since the drop I'm on 4.84% another fall and I'll be lower than his fixed rate but he knows exactly how much he's having to pay for the next 5 years and the payments are within his budget, it's a bit of a gamble so take a chance or fix and know what your paying.

I think your friend is very sensible.

You, on the other hand, will have to keep an eye on the market. Could be in for a shock in the new year, if oil prices keep rising and Us rates keep soaring.

But then, life's v unpredictable. That's the beauty of it.

Six months ago the experts were predicting rates at 5.5%, three months ago they were saying rates would be at 4% by year's end, now they might go back up.... in simple terms, no one really knows anything. Choose the option that suits your pocket.

But personally I'd fix for as long as I can - at least five years, preferably ten.

Ian_W

MM Wrote: But personally I'd fix for as long as I can - at least five years, preferably ten.

We agree - don't know I'd go 10 though, but 5 - YES.

After last weeks BoE meeting EG was at pains to stress that it wasn't the start of a downward trend and the market took note. I'm not sure other countries interest rates are that good a guide - wide disparity for quite a while and different economic situations. Stand to be corrected of course.

Last years 3.5 was lowest since Noah was a lad and you can fix for a long time for 1 to 1.5 above that. Average over last 20 years is probably nearer 7%. If you're on a tight budget it's a cert - if you're not it's still a good each way bet - IMO.