Remortgaging: There's no good reason not to fix the rate is there?

[NutherdayNuthername]

When we moved 3 years ago interest rates were very low and there was talk of a rise, so we took out a 3 year fixed rate rather than a discounted rate. Then rates dropped further, so we regretted it. Now we're at the end of the deal and need to remortgage, so we're facing the same decision. The BoE base rate is rock bottom, so it seems like a no-brainer to fix, but there is occasional talk of negative rates.

I'm not looking for advice - just a straw poll of wwyd opinion from mumsnetters who watch these things more closely than I do.

Make sure you look at rates at both a 2yr, 3yr and 5yr if you are thinking about fixing. 5yr rates can look quite attractive compared to 2 yr.

BoE told all banks to prepare operationally for negative rates earlier in the year - so not surprising that some have updated terms and conditions. But the other side of the coin is that there are lots of inflationary pressures around with Brexit etc at the moment.

Only you know your financial position fully and how good your options are will depend a lot of the amount of equity in the house and your credit position.

We are also with nationwide and recently fixed again (always fixed as we like the certainty of knowing the bills), we did 2 years when we first moved in, then 5 as rates were lower again and we knew we wanted to save for a wedding and likely baby in that time, we've now gone for 10 which was a bit daunting (who knows what will be going on in 10 years!) But we know we definitely don't want to move any time soon and are now having our first child, want a second in a couple of years and rates at the moment are the lowest they have ever been from what I read at the time so we went for the long term security.

We also have an age left on the mortgage so 10 years was feasible because we have so long left

I've just checked nationwide rates. If you don't want to move your mortgage I would go for the 5 year fix at 1.19. That is an excellent deal. Only one fee. You are unlikely to pay much less even if rates go down.

@finallymightbehappening

I've just checked nationwide rates. If you don't want to move your mortgage I would go for the 5 year fix at 1.19. That is an excellent deal. Only one fee. You are unlikely to pay much less even if rates go down.

This doesn’t show for me, maybe my LTV isn’t low enough for it?

@finallymightbehappening

I've just checked nationwide rates. If you don't want to move your mortgage I would go for the 5 year fix at 1.19. That is an excellent deal. Only one fee. You are unlikely to pay much less even if rates go down.

That's not the rate I've been quoted. Our LTV is 16%, we've been a customer for a zillion years and their letter says the offered rates are as good or better than new customers.

The 5 year fixed rate we're being offered is 1.24% with a £999 fee (or 1.54% without).

Selling within the duration of the fix?

We.always fix because we like the cergainty.of how much we'll be paying, remortgage every 5 years usually, but 2 this time as it should be cleared in about 5, never paid any fees.to do.so. We go through London & Country and they don't charge aNd the deals we've got have always included the !egal.work FOC

@NutherdayNuthername do more research, there's no reason really why you need to stay with Nationwide

[quote SquashMinusIsShit]@NutherdayNuthername do more research, there's no reason really why you need to stay with Nationwide[/quote]
I"ve done a price comparison on MoneySavingExpert. There are slightly cheaper rates available elsewhere but not cheap enough to cover the hassle of moving (and there would probably be additional fees for moving too).

@Doomsdayisstillcoming

Selling within the duration of the fix?

No. Leaning towards a 3 year fix. There's only 10 years to go on the mortgage and we may pay it off sooner.

I’d fix, we’re at risk of inflation which could lead to an increase interest rates.

I would fix and just make overpayments when you can. This will reduce the interest in the long term.

I was on a discount tracker that ended in Dec. Moved onto a fixed because the discount trackers that are around at the moment aren't that good, a fix was a bit cheaper and unlikely the trackers around at the moment would ever come below the fix available.

Personally I'd fix as I like the certainty of the payments and we can overpay 10% on our product. We are due to renew again next June I just hope rates stay low until then

[quote Aprilx]@TwoAndAnOnion

Why would you pay more than you have to

You are asking that of someone that has suggested there is no need to get a fixed rate? .

A fixed rate mortgage means a higher rate and involve arrangement fees every few years. It does provide certainty, but in all probability will result in paying more. If somebody can absorb any movements, which are very very unlikely to be significant, then it makes more sense to look at a tracker for example.[/quote]
I have no idea where you fix your mortgage, mine was fixed at 1.11% a couple of years back and involved no fixing fee.

I am however old enough to remember the base rate at 17% and mortgage interest at 22%

I'd be more inclined to take an independent financial advisor's opinion.

What goes down will eventually go up.

You aren't guaranteed to pay fees, have a call with London & country to see what deals they can find for you, they don't charge but might be able to find you a good deal

Op we have always fixed because our income has been extremely tight and would tip us over if there was an increase, also I don't want to be keeping an eye on interest rates and worrying, so we also paid for peace of mind.

However, had we had more slack and room to "gamble" yes we would have fine for trackers and over paid... Remember over all we are talking about incredibly low rates, amazingly low rates and we are splitting hairs over small numbers.
. If you can afford to gamble and over pay whilst the rates are so low I would.
However apparently inflation is on our heels so be cautious.

First direct has been fantastic on rates and fees.

I wouldn't fix it and pay a more expensive mortgage. They've been saying for years there cld be a rise and I think right now there is absolutely no chance of that happening.

When were interest rates 22%? The highest I can ever remember them being was 17% in 1992. I was nearly sick on my shoes when they went that high.

Someone I know was paying 18.5% when rates were at their peak.

I remember it well, because 18 months earlier, she had mocked me for remortgaging at 13% fixed for 3 years.

My FA (and obviously you should seek your own professional advice) is convinced we are heading to a rates rise, so unless you are really flush I would consider fixing.

I would ALWAYS go for fixed rate especially at the moment!!!

But then I'm an old fucker who had a mortgage in the 80's which went up to 18%!!!

I remember the stress as a child of huge interest rates and my parents nearly losing the house- tbh it’s made me a 10yrs fixed kind of person

As long as there is absolutely no chance of you wanting to move during the fixed rate period, and you are fully aware of exactly what the limits on overpaying are (fixed rates often come with less flexibility on overpaying for obvious reasons), then go for it if the certainty makes you feel better.