Fix mortgage at 4%

[Alexalee]

Would you fix now at 4% for 10 years. Need to decide before Wednesday

Current 2% rate runs out in january

Yes

Probably not for 10 years. But it's impossible to predict if rates will stay high for a long time.

Sounds like the best rate I've seen.

But I don't know the answer. It's gambling!

Take what makes you feel financially safest.

Cheapest 5 Yr is 4.5%

Cheapest 2 year is 4.95

Can you afford it?

if you don’t do it and rates rise can you afford that?

I fixed at 3.2 for 10 years a couple of months ago. Deal was with current lender so went with it for peace of mind.

Since read that some people predict things will stabalise again in a couple of years but for me the anxiety wasn't worth it. Hope to overpay as much as poss as early repayment is an option.

Just looking at those interest rate figures we can work out that the banks expect the rates to go back down over the medium to long term.

I'm vested in this thread as it won't be long before we have to make this stress inducing decision.

Mortgage rates are reducing and banks will be pricing in what they expect to happen (as these are largely drives by Gilt Swaps).

I'm due to remortgage in May 2023 and we've got a fixed rate for 2 yrs banked but will more than likely take something else. Might opt for a 2 yr tracker and see where we are in a couple of years.

In your shoes I'd get the 5 years at 4.5%

Without knowing any more about your situation, I'd go for 4.5 for 5 years.

We're fixing for 5 years at 4.55% now - did consider a 2 year tracker but as rates likely to go up by 0.5% again in a few days it wouldn't really be worth considering IMO as that takes tracker almost to the fixed rate level.
I'd expect rates to hopefully go down by the time the 5 years are up, or if not that we'll be earning sufficiently more and overpay to manage. Although, who knows!
10 years is a long time but it depends just how vulnerable you are to any interest rate changes I guess.

We are wondering whether to do this too 🧐

Like the banks thought inflation was "transitory" and they thought the housing market wouldn`t go pop in 2008? Take the fix.

We still have very low interest rates by historical standards. 3-5% during recessions, 6-8% in better times. Interest rates won’t fall as the economy recovers with a tight labour market and double digit pay awards.

If take it. Historically that's a great rate.

I would never fix for 10 years under any circumstances. You don't know what life's going to throw at you in that time. For me it would be 5 years max.

If you think you’ll stay in your house for the next 10 years, or if affordability is tight, I’d take it. I think there’s at least another percentage point rise in the pipeline.

I fully understand not wanting to take a 10 year fix, but it may turn out to be a smart move. Who knows. It depends on your attitude to risk. I congratulate anyone who did this during the past few years.

I agree, and if you are looking at a 10 year fix check the early exit fee very closely. If you circumstance do change you could easily be paying £10s of thousands to get out of the deal, at a time when possibly every penny will count.

We fixed at 2.7% for 10 years a couple of months ago because we can afford the payments and prepared to take the hit if rates drop in that time due to the security of knowing payments won't change.

If it's portable it's not a bad deal.
What's the ERC? Does the percentage go down over the ten years?

But what if you unexpectedly needed to sell the house? Death, divorce, affair, job loss, sudden need to move elsewhere for whatever reason? 10 year fixed are a big gamble imo.

Not for ten years, too long.

No I would never fix for 10 years. Too many unknowns. I would hesitate to fix for 5 years let alone 10.

Not for 10years