Would you fix your mortgage for 5 years at 5.63%?

[MegBusset]

Our fixed rate is coming to an end in April (this is the point where I curse not fixing for much longer as the rate is 4.48!). Anyway the best rate we can get atm is 5.63% for 5 years with no reservation fee. If we went on a tracker or fixed for a shorter period the rate would be closer to 6%.

However, it seems that interest rates might come down further in the next year or so -- and 5 years is a long time to be tied into a rate.

On the other hand, I recall a time when rates were 12% so it could be better to play it safe, 5.63 is still not that high.

So WWYD in our position?

Was talking about the rise from 4.99.

My mortgage broker is fairly sure that there'll be another two rate cuts this year. I'd hold on if you can.

i was in the same boat in october, going from a v low fixed rate. we went for the tracker and our payments have gone down twice already. we got the best deal from our current lender, but only after i badgered them lots. hth

The BoE have kept base rate at 5.25 for this month, and are worried about inflation (I've been reading the paper), so the rate you were offered looks good. Also, just because the base rate drops, it doesn't mean the mortgage rate will follow. My ideal mortgage would be a capped one at about 5.20, but when I asked in December 06 I got laughed at, so went with the fix.

Also, given that lending criteria are tightening rapidly, then I'd go for it whilst it's there. These deals get puled so fast.

I'm in same position, just been offered 5.58 for 5 year fixed with Abbey and have to decide by tomorrow as they're withdrawing their rates on sunday.

It's tough isn't it. When we first got our mortgage in 2004, we went on a tracker and rates went up (three times in the first five months!). After two years we fixed, then rates went down! So we seem to have the knack of doing the wrong thing...

abbey are putting all rates up from monday so if they have offered you a good deal take it now!

Why not go for a capped rate? Then you are ok if rates come down? National Counties Buiding soc are doing one currently at 5.55% capped at 5.9% - if rates go down it comes down immediately as is a tracker

they are also doing a fixed 5 year rate at 5.34%

Id take it especially if youd value the peace of mind.
Nationwide is a good lender and generally play fair, rates rarely table topping but usually near enough those that are. And no fee is great!

First Direct 4.75% for 2 years (£999 arrangement fee), 5.25% for 2 years (no arrangement fee) or 5.29% for 5 years (£299 fee). Worth considering?