Mortgages - Fix (Again) For 2 or 5 Years?
Discussion
The deal on part of our mortgage is coming to an end and I'm wondering how long to fix it for again (I like fixing it just to know how much I'm paying per month vs variable).
Options with my current provider are 2 and 5 years. Given that in the next 5 years we'll have had a GE and all hell may have broken loose, I'm currently thinking fix for 2 and see whats happening and then maybe get a better/longer deal in 2 years which may see me through whatever happens as a result of the GE...
Any other thoughts???
Options with my current provider are 2 and 5 years. Given that in the next 5 years we'll have had a GE and all hell may have broken loose, I'm currently thinking fix for 2 and see whats happening and then maybe get a better/longer deal in 2 years which may see me through whatever happens as a result of the GE...
Any other thoughts???
All the answers to your question are probably in https://www.pistonheads.com/gassing/topic.asp?h=0&...
It tends to come down to your attitude to risk / your ability to stomach it going the wrong way vs the peace of mind for having a fix at slightly too much.
I tend to model it in excel / chatGPT to see the "opportunity cost" to me of fixing vs riding a tracker down - the product fee can count for a fair amount across a 2 year deal (e.g £999 every two years soon adds up).
In our case, we've opted for an IO lifetime tracker (at base rate + 0.52) and have seen it come down a fair old chunk this year already - some rumours have another cut to happen soon and up to 3 more next year, at which point, the fix might not look so good vs moving onto a fee free tracker now. I am of the view we can always fix it in ~ 6/9/12 months if the picture changes and be no worse off than we would have been fixing 6 months' ago.....
It tends to come down to your attitude to risk / your ability to stomach it going the wrong way vs the peace of mind for having a fix at slightly too much.
I tend to model it in excel / chatGPT to see the "opportunity cost" to me of fixing vs riding a tracker down - the product fee can count for a fair amount across a 2 year deal (e.g £999 every two years soon adds up).
In our case, we've opted for an IO lifetime tracker (at base rate + 0.52) and have seen it come down a fair old chunk this year already - some rumours have another cut to happen soon and up to 3 more next year, at which point, the fix might not look so good vs moving onto a fee free tracker now. I am of the view we can always fix it in ~ 6/9/12 months if the picture changes and be no worse off than we would have been fixing 6 months' ago.....
I'm due to move to a new deal in about 3 weeks time. We got 3.99% for a 5y fix, no fee, with HSBC.
I found that 5y deals are (slightly) cheaper than 2y ones at the moment, so presumably the people who set these things don't expect interest rates to fall much over the longer term. On that basis, we went for 5 years. In any case, it's not that high that we'd be absolutely desperate to break out of it, if rates were to fall.
I found that 5y deals are (slightly) cheaper than 2y ones at the moment, so presumably the people who set these things don't expect interest rates to fall much over the longer term. On that basis, we went for 5 years. In any case, it's not that high that we'd be absolutely desperate to break out of it, if rates were to fall.
Gassing Station | Finance | Top of Page | What's New | My Stuff