Fix now or wait for better times?

redredrobin_2

Hi, I'm buying a house for 460k and need to borrow 300k. I'm already on a discount variable (5.65 currently) which I can take with me, but it ends next March. My dilemma is: do I remortgage now to a more expensive fixed-rate for the stability, or stick with what I've got and hope for better deals next spring? Bearing in mind, any INCREASE in mortgage deal rates between now and then would be painful indeed.

Kez100

Why are you buying such an expensive property then if increases in mortgage rates are that painful? Rates can go up at anytime you really ought to build in some slack in your affordability to accommodate that. A home is for life,for living in. Not an arcade game.

dimbo61

As you already have a good rate of 5.65% and you know how much this
will cost you a month I would shop round and see what fixed rate deals
you can find and use a whole of market mortgage broker to see what they
come up with. this is a very large mortgage and only you know the true state
of your finances and wether you can afford any increases if the rate goes up.
I prefer long term fixed rates (as I am in the middle of one right now) as you have the reassurance of knowing what is for most people the largest monthly
payment is fixed for several years . GOOD LUCK

narced

redredrobin wrote: »

Hi, I'm buying a house for 460k and need to borrow 300k. I'm already on a discount variable (5.65 currently) which I can take with me, but it ends next March. My dilemma is: do I remortgage now to a more expensive fixed-rate for the stability, or stick with what I've got and hope for better deals next spring? Bearing in mind, any INCREASE in mortgage deal rates between now and then would be painful indeed.

I assume you must have a salary of around £100K. If not, then you might find yourself in severe financial difficulties or even repossessed in the future. Who knows if interest rates will continue to stay as low as they have in the last few years?

redredrobin_2

Thanks all. I went for a fix in the end -- Abbey, at 5.57 for three years. But then my buyer pulled out. Back to square one!