Hi
Should I fix my mortgage? I know there is no correct answer to this, just I thought I would get general opinion as my current deal runs out in 4 weeks.

If anyone has a crystal ball for sale I'm in the market for one.

You're right, there's no right answer bit here are my thoughts.

Rates are very very low. They are likely to go up in the next 2 years but are they likely to rocket up to 7%? I don't think so. If you're looking to fix for a couple of years it would have top be a pretty low rate. Longer term, say 5 years is harder to predict.

I fixed shortly before the rate plummeted and it's cost me a fortune.

N.

TBH I'd fix. Interest rates have been set at current rates for a record 18th month HOWEVER..

this is only until January I reckon (i.e. past the important run upto Christmas). I see them raising 3-4percent in 2010. If that happens its going to be pain.

A 3-4% rise in 3-4 months.

Blimey, Hora is the new bringer of doom.

did you mean 2011 dear boy???

😀

Oops.

Its going to go up. If you can afford to gamble on a increase. Do it. If your aversion to risk is lower though – I'd go with the best fixed that you can find (even if it has a +£500 arrangement fee ontop).

All IMO of course 🙂

even if boe base rate goes up by 3-4% next year (unlikely imo, considering the vulnerability of the economy) the differential between the base and current mortgage rates is currently very high, and I think the banks will absorb a lot of the increase if it's sustained.
When your current offer finishes, what rate will you go onto?

Mortgage moves to 4.99% standard variable after offer finishes. We currently on 6.25%. Basically we've been getting mugged for the past 2 years whilst all the tracker customers have been having the life of riley 🙂

But we've just got an agreement in principle with First direct for variable @ 2.39% with £99 arrangement fee. Thought that was ok.