Should I take this fixed mortgage rate or wait until July?

[TKR]

My fixed (cheap!) mortgage deal is ending in July, and I have been offered a fixed rate or 3.9% for 5 years. I was going to wait to see if there were any better offers, but have just read that interest rates are likely to go up in May and so this offer may be withdrawn. I can’t “shop around” as my circumstances have changed since I got the mortgage (am now a full time carer) so I’m thinking I should snap this up and then at least I’ll be able to afford repayments. But if interest rates go down I’ll be paying more! I need to fix really as there is no room in my monthly budget for huge fluctuations.
Thanks for any advice!

some mortgage providers will allow you to lock in a rate but then switch it if a lower one comes up before you’re due to start. Worth asking your broker/provider. We’ve just done in with Barclays.

Aah I’m with Barclays. Thanks I’ll ring them and ask.

3.9 is a good rate ATM. Many lenders are asking for 4.9. If your circumstances have changed I'd be snapping up that rate. If you change the lender you have to provide evidence of earnings all over again.

I'd take it

Thanks.

Hi OP did you find out if you can still switch u til your current deal ends? I chose a new mortgage in Feb for ours that finishes in July but having looked again the rate has gone down so wondering if I can switch again x

Hi, Barclays said I can ring them and “give up” the deal I have chosen but then have to wait 3 days before I can choose a new deal, so in that time you risk the rate/offer you have seen being withdrawn as apparently they can change daily/be withdrawn at any time. If there are a couple of options that are around the same rate then you have more chance of picking a better one once your 3 days is up. Might be worth ringing your lender and seeing what their policy is to try and get a better deal?

I always think even if you end up paying more it’s worth it for the knowledge you can afford the mortgage for a significant period of time. I don’t think you should really expect a fixed rate to be cheaper even over the term but assume you will be paying a bit more for stability. If it works out cheaper it’s a nice bonus.

We took a 5 year fixed rate on our old house twice and both times variable would have been cheaper. We even paid an early replayent fee on the second term as we moved after 3.5 years. It was still worth it as it meant we always knew how much money we would be spending on the mortgage.

In our current house we took a 10 year fixed rate at 2.44% and first 3-4 years we overpaid vs taking a variable or shorter term fix. However, now we have the benefit of knowing we have until late 2027 before we need to remortgage and currently it’s saving us about £300/month vs the best rates available. Even if it wasn’t I’d always fix unless I had a short remaining term or the amount I owed was small vs my income. I am quite risk averse with finances I suppose but it’s worked out ok for us overall and we’ve not had to worry a lot. If the fixed rate is stupidly expensive later you always have the option to pay an early repayment charge and move to a cheaper rate

I'm the same @whatkatydid2013 my last mortgage I overpaid a lot vs others not on a fixed rate, but this time round I'm around £3-400 a month better off having fixed.

I just accept it as part of the rough and tumble of mortgages in order to have some stability. For a long time I paid the mortgage solo and I had to know my outgoings to the penny.