Secure 5 year fixed mortgage TODAY or wait to hear news of interest rate announcement tomorrow

[Lovelyveg80]

5 year fixed at 4.18%

or

wait for announcement tomorrow

thoughts?

Hard one. Do you have a mortgage advisor to speak to? 4.18% seems quite good in the current market?

I'd go for it I think.

I'm clueless really but I've seen people saying rates will settle around 3.5% so I'm expecting our mortgage renewal next year to be 4-5%, so yours seems to fit with that. Is the repayment affordable?

Yes all affordable but just don’t want to secure today and then see a rate drop tomorrow and know that I’m tied in for 5 years and watch rates continue to fall.

Oh I’m not sure! I think I’ll fix

There's been an unexpected jump in inflation today, in your shoes I'd fix now.

Is there 14days cooling off period?

The BoE decision tomorrow isn't going to be between sticking or dropping interest rates but between sticking or raising rates, given today's inflation news.

Fix today, rates are more likely to go up now with inflation news.

I fixed mine I am sure interest rates will only go one way (up)
will be paying extra 100 a month ☹️

They let you move to a lower rate before it kicks in.

So we've fixed for when ours comes up and our adviser emails and tells us it's been amended to a lower rate every so often.

How long have you got?

Fix today. Interest rates likely to rise further after today's news about the rise in inflation.

Can't imagine them coming down. I'd fix for even longer tbh.

Just fixed for 5 years 4.18%. No fee. And shortened term to 16 years. Counting down!

Good decision. Rates are going up or staying level- they won't go down any time soon.

As a side note, anyone got any thoughts on when rates may come down? We don’t have to fix again for 3.5 years and are currently on about 2.5% and don’t fancy a big jump.

Do you have to fox for 5 years? An election will happen in the next 2 and there will probably be all sorts of promises.

Im paraphrasing but I think Martin Lewis' advice is that if you can afford what on the table today then whilst you could have got better, you wont be worse off than what you can afford at the point you fixed. You might not have extra money but if it goes up, might it make things unaffordable for you?

That was exactly our thinking re the affordability when we took out our mortgage.

There's been some discussion of rates coming down a little next year. I don't think they will come down to anything like what we've had over the last few year though- in fact, in historic terms they're pretty low now (average rate over the last 50 years is 7.75%).

A lot can happen in 3 and a half years, if you can afford to do any over paying (or putting money in savings if your mortgage can't be over paid or if the interest rates are better) then that would be sensible but other than that it's not worth thinking about for a couple of years at least.

Things are looking a bit more stable now than they were after Liz Truss took over

I see you have fixed which is probably sensible

Well done for reducing your term

Commentators have said the historic lows of 1% mortgages are long gone so overpaying is also going to be a good idea going forward

We always did fixed with the best rate we could find at the time - sometimes we were paying more and sometimes less than the rate of the day, but at least we knew what our payments were and we could afford it

4.18% and no fee is not bad at all, that is £4,180 interest a year on £100,000 so £80 a week interest, if you can overpay the interest each day, no takeaway coffee and sausage rolls from greggs in the morning, very quickly builds up, the mortgage lady told us if we can pay the interest as an overpayment, each week, you’ll be shocked how quick it comes down, and she was right.

some of them (lenders) want anything up to £2,000 in fees upfront.

The thing is you have fixed it for five years, you’ve made that decision, and you know exactly what you need to find each week.

Depends on when the new mortgage product is starting.

If you’ve ‘reserved’ a switch now for in 6 months time and the rates reduce call the lender and request the lower rate.

That is what we do for our clients as mortgage advisers.

Can someone fill me in on what announcement is coming?

Been umming and ahing about fixing, can get a similar rate to OP (currently on 2.2% could have fixed for 5 years 🙃)

The monetary policy committee are meeting tomorrow and they will vote to either increase, decrease or keep the Bank of England base rate the same.

Lenders have already announced their rates for the remainder of the month and unless the MPC do something wildly left field I can’t see any further changes (apart to tracker rates and discounted rates) until next month.

Lender rates are driven by swop rates rather than the BoEBR