How long should I fix for?

stedwell

I have a 105,000 mortgage (70,000 interest only) and 8 years to run. I keep fixing it every 2 years but am getting fed up of doing this and the fees are an issue too. Would it be a good idea to fix it for 5 years this time and should I act soon? My current mortgage ends in December currently on 4.9%. Should I see this through? There is no tie in with it.
Cheers!

PS I have always sought my mortgage through an IFA but determined to do it alone this time!

c_smith

Start looking now for deals to remortgage, but don't commit yourself to anything just yet incase the base rate comes down further over the next couple of months. Even though you say there are no tie ins with your current mortgage, I would expect you are tied into it until the end of your fixed rate period in December, so you'll need to stick with it until then or incur penalties.

In my opinion you are better off doing your own financial advising and there are plenty of websites where you can compare mortgages. Have a look through some of these:

http://www.moneyextra.com/mortgages/
http://www.moneynet.co.uk/best_buys/mortgages.shtml
http://www.tiscali.co.uk/money/mortgages/
http://mortgages.charcolonline.co.uk/
http://www.thisismoney.co.uk/homes
http://www.switchwithwhich.com/mortgage/search/index.html

dwsjarcmcd

Much depends on your circumstances and personal viewpoint, however, 2 year and 5 year fixed rates are priced very similarly or so cheaply, so if you want a 5 year rate, there has rarely been a better time.
I would also add that fixed rates track the money markets, not BoE rates. They are a factor, of course but generally changes in interest rates are factored in to money market rates before they happen.