To ask if you would fix your mortgage right now?

[likeamother]

Fixed has previously always been a no brainer for me, and the security of knowing what I'm paying each month outweighs a slightly higher rate. BUT my mortgage deal is up at the end of the month and to fix I'll be moving from 2.49% to around 5.24% - and that's if I fix for 5 years. (I could fix for 2 years, at around 5.7%)

It's higher than the variable I'd automatically move to of 3.89% but my concern is if interest rates risr further and then I'd be in a jam, and if I fixed then the % would be even less favourable.

I've tried looking online but all I could find from Martin Lewis was that it might go down in a few months but of course there's a lot of uncertainty in the world and there are various factors influencing.

Has anyone had paid for advice recently about this kind of thing or is there anyone with knowledge around the mortgage market and rates please? I'm just wondering if house prices fall with recession, will the interest rates?

I'm a single parent and am really going to feel the extra £££ on my monthly payment, there's no other salary to shoulder the loss. But then I'll also really feel it if rates shoot up and I'm on variable! 😭

TLD;
YES - Fix mortgage at higher rate
NO - Chance variable for a few months then fix if rates drop

That's interesting. With my lender the tracker is about 1% more (just under) than SVR, but the SVR is discounted for 5 years. But it might be worth me looking into properly with them, thanks

I understand that the rate is going up 0.5% again in December. I would fix to have some certainty and overpay if you are able. The world could be a very different place at the end of your fix.

@titchy

are they? I can only see 5.54 on 2year fixed

tried various borrowings & LTV RATES.

I have just fixed. It's either 4.7 or 4.8.

Ah maybe that's for existing customers sorry

@likeamother we used a broker. We have used them for a few years now. We have 37% LTV and hoping for a slightly better rate but not in a position to be picky to be honest.

Depends on your lender as to when you can switch.

Most will allow you to pick another product if their rate lowers before completion. Some lenders are saying within six months of completion also (smaller lenders mainly).

Rates are starting to come down as the initial
hike was the massive knee jerk following KK somewhat dubious budget.

The next MPC meeting is 16/12 (I think) and likely for another .5% rise. My take on it is that the lenders have already built this in to their products, hence the lowering now.

Please be aware that if you are remortgaging away from your current lender that the affordability calculators have become more stringent of recent and we as brokers are seeing people being ‘offered’ less with other lenders, which means a PT with their current lender is the only option.

I wouldn't fix now no.

You can apply for a new mortgage deal six months ahead though - did your lender not make you aware of this? There were some much better deals in July that you would have had access to!

Food and energy prices are part of the measurement of inflation so how does those going up bring inflation down?

Rishi is very good with economics

😂His party's been in for 12 years! He was Chancellor since 2020! That's why the country is such fine shape!

I wouldn't fix at that rate no. I've read suggestions recently that rates are likely to peak at 6%. As we'll be in recession the bank of england will be under pressure to keep rates as low as possible to encourage spending. I'm just about to take out a 3.34% mortgage fixed for ten years, but I wouldn't be fixing at over 5% at all and maybe for 2 years on 4-5%.

Thank you all so much, this has been massively helpful.

I'm just waiting to speak to a broker but thinking I'll let it go onto the discounted SVR and hope the broker can find me a decent 2 year fixed but to start in a few months, then revisit and hopefully lower further should the rates drop.

@EcoCustard hope yours goes well. I have 30% LTV so you'd think would get a decent deal but it seems slim pickings so far. That's without a broker though, so hoping they'll be able to find me something a little less rubbish!