[Closed] mortgate about to end fixed term

Base it on your personal circumstances, because there's no such thing as free money and the wisdom of crowds. I.e. the banks are just balancing their risk so if lots of people are opting for fixed rates because there's an assumption the variable rate will go up the bank will up their fixed rates to put them off. And vice versa. So the rates are just a reflection of some clever people at the bank and tens of thousands of average peoples sentiments. So in theory if you had a crystal ball then all else being equal it would tell you to flip a coin as the rates should balance over time.

In reality people sentiments aren't always driven by the correct things and for the past 5 years I've had two fixed mortgages that were both higher than the variable rate the entire time (but if I keep doing it for 25 years it'll probably work in my favor eventually).

I was in contact yesterday with a mortgage broker as I'm looking at moving soon, either buying out the ex wife or somewhere new if we sell the property. I'm inclined at the moment to go long term fixed, it being more important to me to have a known outgoing rather than what might be the cheapest deal. His take on it is now is not a time to fix as he sees the likely direction of rates as down. It's early days so I'll see what options he comes up with and go from there. I suppose what I really need to consider is what are the risks of significant interest rate rises and what events might trigger that to happen.

So the answer is who can say

What's important at this time of your life. I have been variable rate but am now signing up for a fixed because it meets my current requirement

His take on it is now is not a time to fix as he sees the likely direction of rates as down.

Ehh? How far down is this expert expecting them to go given the BoE base rate is .75% and there are fixed rates going around at 1.25% at the moment. I think you need a new advisor or think hard about what they are telling you.

If it were me I would rather fix and maybe lose out on .5% rate reduction than go variable and be stung with a much bigger increase.

IMO.

Ehh? How far down is this expert expecting them to go given the BoE base rate is .75% and there are fixed rates going around at 1.25% at the moment.

There's a few European countries on -ve rates, so potentially a few points yet!

Might be better to just go on variable rate. This is what we did after our initial 2 yr discount rate ended. When I worked out the costs of going onto another deal it just wasn't worth it while interest rates are where they are. It would have taken me ages to recoup the costs and though interest rates have to go up at some time, they could remain low for the foreseeable...

I like a bit of stability, I'm on a 3yr fixed at about 1.99%, not perfect, but not enough to worry me and significantly better than the original deal I got 10 years ago. Obviously rates won't go much lower and I'd be amazed if we go to -ve interest rates here.

It's a gamble, spin that wheel!

I can fix for 10 years anytime between now and Feb before the standard variable kicks in.  The next BOE meeting is on the 7th Nov so ill be sitting at my keyboard with my finger in the “Accept” button constantantly refreshing the financial news.

if it goes up I’ll accept the current rate before it changes.  If it goes down I’ll wait a bit...

Just changed ours (only 3 years left on it) used moneysupermarket and their own advisors (fluent mortgages)

Great service, saved me over £215/month (got the mortgage fixed for 2 years at 1.8% with no fees)

Ehh? How far down is this expert expecting them to go given the BoE base rate is .75% and there are fixed rates going around at 1.25% at the moment. I think you need a new advisor or think hard about what they are telling you.

I knew I shouldn't have gone to someone whose been doing this every day for years and arranged mortgages for people I know including people who have several properties and employ a cautious approach, fancy me thinking a professional would have a better insight into this than some random person on here.:-)

For what it's worth I'm more inclined to your approach and  I'm tempted to go fixed for 10 years if affordable, It'll be a low lone to value, no more than 25%, and I'm happy to trade lower overall cost for  certainty. Having said that I went tracker last time and watched my repayments fall to a level where the same lender was offering me higher interest in my savings!

I would be amazed if most people didn't have an interest rate floor in place so not too much lower its can go.

Mine is up shortly also, currently on a fixed at 1.19% with Sainsburys(no longer do mortgages). Sadly nothing as low as that currently. Looks like my mortgage will go up for the first time ever in 18 years of doing a 2 year fixed.

So ended up with a 2 year fixed as the other half is fixed for another 3 years. Forgot about that. Doh

I say fix.