Mortgage, are we doing the right thing?

[southeastlady]

Our 5 year fixed rate of 1.79% ends on 30th April

The best fixed rate our broker has found us is 4.04% with NatWest, fixed for 5 years. Will be £923 a month which we can afford

I'm 39 so just about remember the days of higher rates so maybe going on long term averages 4.04% isn't so bad and have the security of knowing what we have to pay each month.

Been reading a lot that the general thoughts are that interest rates may come down next year so am now doubting whether we should be fixing for less time or even going for a tracker?

We are in almost the exact same position, only our deal ends in august. Same interest rate currently and quoted the same with natwest, who is our current lender.

Most mortgage brokers we're speaking to at the moment are advising 2 or 3 year fixes. None of them are advising 5 year fixed terms because they all think rates will go down - but we're ftbs with a small deposit, currently looking at 5.4%.

Personally, I don't think they'll really budge down much over the next few years. Maybe in 3.

Depends on what your priority is: if it's security, a 5 year term is probably best for you.

We're going to try to aim for 3 years, I think.

Found a recent thread about mortgage/interest rates, fyi:

https://www.mumsnet.com/talk/money-matters/4734813-when-will-the-interest-rate-go-down

We fixed for 2 years. God knows what's going to happen but it seemed like a good idea to us.

I like the peace of mind. I'd go for the 5 Yr fix!

We’re buying with a 5year fix 4.11%. For us; the reassurance for that period is our priority. Can’t personally see the rates will drop much from that

We've just taken a five year fix, Have only done two before. We can afford the jump on a five and I prefer knowing what the repayment is. We took our first mortgage out just before the banking collapse, this is the first time I've felt wary.

We decided to fix for 3 when ours came up for renewal in January. There's not really a way of knowing for sure what is the best thing to do.

I would personally fix but depends on your circs.

We have always fixed because ive either been a sahm or in pt work. Neither of us wanted to be in a situation where rates rose and i may have to go ft as a result.

I secured one for 5 and one for 10 years,the 10 year one was 4.7% the 5 year one was 2.9%
Between the 5 year one coming to its end and the 10 year one coming to its end the rates spiked and I choose to fix for higher for longer for security

If you can afford it I'd say stick. I was lucky I had my last mortgage for 5 years on 1%

My son is in process of buying his first home and he has gone for 2 year fix.

Going for 3 year fix but only 3 years left. Who knows what rates will do longer term.

That’s amazing wish I had 3 years left

Hoping to clear it in 15 years

Decided today to go for 2 year on the basis that rates are likely to be down within that time frame, decision also shaped by (1) expect to move to next LTV bracket by then and (2) plan to overpay regularly too, so in two years' time I will want a different deal and will qualify for better rates

We are in a very similar boat with our deal ending in august. We’ve just fixed at 3.9 for 5 years. Having thought about it, the piece of mind is worth it for us. We can afford the new payment. But we would struggle if it goes much higher, so we are willing to risk paying a bit more for the security it won’t be any higher for 5 years.
I imagine rates will start to come down, but I don’t think they will come down as low as they have been. And the world seems so uncertain at the moment, we just don’t fancy the uncertainty and the risk of something drastic happening and pushing them up.

I think it’s a very personal thing in terms of deciding what risks you are willing to take and what security / peace of mind is worth to you.