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?

Thank you @Iwrotethelyricstoaxlf ! If that's the case I will see what tomorrow bring then fix by the end of the month (or not).

When’s your rate run out?

Yiu can fox a new rate up to 6 mo the ahead with most lenders.

if their rates fall once you have secured a rate you can ask to be switched to the lower rate.

we tend to secure rates as soon as poss for clients then amend if needed.

June I think!

Fix today. You can reapply if rates go down

Fix for 2 years, not 5. That's what I did a couple of weeks ago, on the advice of our broker. He thinks there's a very good chance rates will be lower in 2 years.

You can select a product now from your lends and then if the rates go down ask to be switched to the lower rate. Some allow you to switch up to 28 days after completion (Halifax do)

That is a big risk you have taken. He has no insider knowledge……….there is going to be a general election in two years for goodness sake!!!

so guys don’t listen to that broker 😆😆😆

We can currently get 4.79% for 2 years... Can't see it improving so think we're gonna fix and go hunting for the extra £350 per month down the back of the sofa.

We can currently get 4.79% for 2 years... Can't see it improving so think we're gonna fix and go hunting for the extra £350 per month down the back of the sofa.

I think rates will go up in the short term.

What they are trying to do at the moment is increase rates to combat inflation without tipping the economy into recession. It's a difficult balance to get right though and rising rates will probably push us into recession at some point, the question is when. At that point rates normally start dropping.

Personally I would go for the 2 year fix - think we will be in recession on that sort of timescale, but no-one knows anything for sure. DYOR.

Same dilemma here! Current rate ends in 11 days, and I've been watching the rates every day for the past month. I could have got 4.62% fixed for 2 years a few weeks ago, decided to wait a few more days as the suggestion was the mortgage rates were slightly falling despite all others going up, and the next day it went to 5.01% Argh. It's been the same since, so I'm thinking of fixing today if possible. It's all a gamble. I know we've all been living in the clouds with low rates for a while now, but to go from 1.86% to 5% is a blow 😥

@AlwaysTheGoodGirl I hear that! I figure that the rates aren't going to reduce dramatically for a while so I'm gonna fix for the peace of mind more than anything, in case they increase dramatically!

Does your existing deal actually expire today? It's probably fine but you can usually change up til it does if a better rate comes up..

Very relieved I fixed and turns out not tied in even if rate does change tomorrow for the better!

Sounds like you’ve gone for a tracker rate @Lovelyveg80 which means if the base rate goes up so will your rate.

I think it'll be going up a while longer so fixing was probably right decision

How much did the repayments reduce/increase?

What made you say that?

no it’s fixed for 5 years as per op

The bit where you said you weren’t tied in. Then I realised you meant you could switch again if a lower rate became available. (No ties usually means tracker/variable in day to day work)

But even with a fixed tracker deal you are tied in.

With a tracker there are typically no early repayment charges. So you can exit anytime in the fixed period. Unlike fixed rates where the ERC is typically 5% in yr 1 and tapers each year.

With the fixed tracker on the table… there was an early redemption penalty

Ooh. Who’s the lender. I’ve not seen one with a penalty that I can recall. Just curious

Nationwide

it was for a remortgage though ie existing clients

That's what I was thinking. Even the bank of England got their inflation predictions horribly wrong. And nobody knows what's around the corner as COVID and Ukraine have shown.