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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Should I fix mortgage at 4.5%

30 replies

HangOnToYourself · 07/10/2022 14:12

Sorry I know it's not an aibu but I've been talking to my mortgage broker and not sure what to do, I'm currently on a variable rat at 4.99 so obviously this may go up. The broker has said they have an AIP at 4.5 % but I'm conscious that is still high and I'm scared to fix at that rate but I dont really have much context and not sure what to do. Is that a stupid rate to fix at?

OP posts:
Thinkbiglittleone · 07/10/2022 14:18

How long would you be fixing it for?

Original poster
HangOnToYourself · 07/10/2022 14:19

2 years as I'm not sure how long will be staying here

OP posts:
titchy · 07/10/2022 14:21

That sounds pretty good to me.

QuebecBagnet · 07/10/2022 14:21

I would. I think interest rates will carry on upwards.

summerlovingvibes · 07/10/2022 14:23

I would def fix at a rate like that for 2 years. And I'd do it sooner rather than later as I reckon that deal won't be around for long!

SalviaOfficinalis · 07/10/2022 14:23

I would if you’re variable at the moment.

Original poster
HangOnToYourself · 07/10/2022 14:23

There are also solicitor feed of 600 which seems very high, is this normal? Sorry I've never done this before and it's all seems very expensive and scary to me 🙈

OP posts:
user1471556818 · 07/10/2022 14:26

If you fix you know what your payments will be for next couple of years
If you don't can you afford to take the risk and pay out more each month
That's the real question

Figgygal · 07/10/2022 14:28

God absolutely thats a good rate for now and they're only going up

Nat6999 · 07/10/2022 14:29

Yes, rates will most likely be hitting 7% in the next 2 years.

Original poster
HangOnToYourself · 07/10/2022 14:29

Ok that's helpful, I was stressing about the solicitor fees because I dont have 600 going spare but it sounds like i will lose more if i dont pay it so i might have to go into.my overdraft

OP posts:
CaveMum · 07/10/2022 14:31

If the repayments are affordable for you then absolutely go for it. As others say, rates are only likely to go up for the next few years. The whole point of a fixed rate is that it gives you longer term security of knowing that your repayments will not change.

Original poster
HangOnToYourself · 07/10/2022 14:34

Is it normal to pay so much for solicitor fees?

OP posts:
Original poster
HangOnToYourself · 07/10/2022 14:37

My worry is the solicitor fees as I'd have to get into debt to pay them but it sounds like that might still be better than staying on a variable rate 😔

OP posts:
Meltingsocks · 07/10/2022 14:42

Ask if you can add fees to mortgage- you often can if it's bank or broker appointed solicitor

B1pbop · 07/10/2022 14:45

Sounds like a good rate to me, and not too extortionate for legal fees. Agree with Pop - ask if you can add them to the mortgage if you haven’t got the cash. Your adviser should have factored in the fees in when finding you the best deal.

B1pbop · 07/10/2022 14:45

PP, not pop!

Original poster
HangOnToYourself · 07/10/2022 15:00

Thank you all I really appreciate the advice I have no real context for this and own the property alone so the decision making all falls to me to sort out

OP posts:
IndigoC · 07/10/2022 15:05

Definitely. I’d take a 3 or even 5 year at that rate. I don’t think we’re going back to 2% any time soon. Rates will likely peak in late ‘23 and come down to settle somewhere in the 3.5-5.5% band.

Jaaxe · 07/10/2022 15:10

A couple of weeks ago we fixed at just under 4%….2 years ago we were fixed on a 1.2%. Our mortgage broker said the rates have been increasing so fast all the time at the moment and to fix it fast. It’ll likely go down again but he couldn’t see it happening anytime soon

Original poster
HangOnToYourself · 07/10/2022 15:16

Jaaxe · 07/10/2022 15:10

A couple of weeks ago we fixed at just under 4%….2 years ago we were fixed on a 1.2%. Our mortgage broker said the rates have been increasing so fast all the time at the moment and to fix it fast. It’ll likely go down again but he couldn’t see it happening anytime soon

Yeah it freaked me out the idea of fixing at that rate for 2 or 5 years but it sounds like it won't be coming down any time soon

OP posts:
ScotsLassie322 · 07/10/2022 15:23

Who did you get that rate with? I'm in the same position -looking for rates. We're only borrowing 100k.

summerlovingvibes · 07/10/2022 15:29

@HangOnToYourself why do you have to pay a solicitor if you're just remortgaging? Are you moving house?

BecauseICan22 · 07/10/2022 15:33

We fixed on a new house we're buying in very early September, our rate is 2.74 until March 27.

We are also going through a BTL mortgage, we've fixed that at 4.07 until March 27 - a few weeks made a huge difference in the rates available to us.

I'd consider fixing at that rate, it's not fantastic but it's not utterly terrible either.

NoSquirrels · 07/10/2022 15:39

It’s basically, do you want the peace of mind of a fixed payment for 2 years, even if that’s a bit higher than you’d like, or do you want to gamble that rates will go down not up within 2 years.

Ask if you can add the fees to your mortgage, if it’s solicitor fees via the lender.

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