What should I do?

a_gwtw

Hi guys,

I'll have to remortgage at the end of this month, and my mortgage provider offered me a 5 year fixed rate of 5.79% (they don't do 2-3 years now) without arrangement/legal fees. Should I take it or hang on a bit for the rate to go down? Thing is if I hang on with their variable rate, it'll be nearly 7%, which is quite bad. But if I accept 5.79% for the next 5 years when the rate is likely to go down, that's not good either.

What do you think? Advices are highly appreciated.
Many thanks!

KiKi

Well, that's the risk with fixed rate mortgages - only you can make that decision!

7% is high, and if you go onto that, and interest rates drop, you'd still have to have 5 rate drops before you'd hit the 5.79% mark.

If you want the security, take it; 5.79% is a good offer right now. If you're prepared to take a risk, and prepared to potentially pay legal fees or go to 7% then wait.

KiKi

duck_egg_3

we have currently agreed a 5.6% fixed rate for 10 yrs...made sense really as we can't afford to be hit with a huge rise with the possibility if it maybe going down at a later date, I'd go for the fixed rate!