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To fix or not to fix

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By *ryandsee OP   Man
over a year ago

Yorkshire

For those financial wizards, as I am sure are many on here, would you currently fix your mortgage as rates are predicted to go a lot higher even after the recent hike. If so, will you go for a short fix like a couple of years or a five year one. I have a few more days to decide on a rate agreed just before the recent rate increases so its not a bad rate and it's for five years. I am inclined to accept as even if rates drop it will be minimal but if they increase dramatically can be a disaster. Obviously not asking for financial advise just an opinion of what you think.

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By (user no longer on site)
over a year ago

If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds

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By *ryandsee OP   Man
over a year ago

Yorkshire


"If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds "

Thank you. I am rather inclined to go with the 5 year fix I have been offered as it was before the recent rises and still not a bad rate. I think for long term piece of mind in case they rise dramatically like they did twenty odd years ago and it was a big hike though it was a small mortgage then so I was OK at the time but many lost their homes.

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By *icecouple561Couple
Forum Mod
over a year ago

East Sussex

Not a financial wizard.

Over the term of our mortgage we fixed several times. Mostly it was the correct decision and the longer we fixed for the more beneficial it was to us. BUT we once fixed at 10% for five years and rates then began to drop dramatically, we opted to take the penalty and change to a lower rate. This was in the late 80s early 90s when rates made today's look like peanuts though

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By *om and JennieCouple
over a year ago

Chams or Socials


"If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds

Thank you. I am rather inclined to go with the 5 year fix I have been offered as it was before the recent rises and still not a bad rate. I think for long term piece of mind in case they rise dramatically like they did twenty odd years ago and it was a big hike though it was a small mortgage then so I was OK at the time but many lost their homes. "

We’re not due to renew until June. I’m torn on paying ERC of £950 or ride it out for a bit longer. I want to move too but would cost a lot of money to downsize so pointless at the moment

J x

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By *ryandsee OP   Man
over a year ago

Yorkshire


"Not a financial wizard.

Over the term of our mortgage we fixed several times. Mostly it was the correct decision and the longer we fixed for the more beneficial it was to us. BUT we once fixed at 10% for five years and rates then began to drop dramatically, we opted to take the penalty and change to a lower rate. This was in the late 80s early 90s when rates made today's look like peanuts though "

Yes my thinking too but fixing at the rate they offered me means if they go down it will only be a little more I am still paying but if they go up a lot it will be a big amount. So I think it's much riskier not to fix but not for everyone obviously.

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By *ryandsee OP   Man
over a year ago

Yorkshire


"If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds

Thank you. I am rather inclined to go with the 5 year fix I have been offered as it was before the recent rises and still not a bad rate. I think for long term piece of mind in case they rise dramatically like they did twenty odd years ago and it was a big hike though it was a small mortgage then so I was OK at the time but many lost their homes.

We’re not due to renew until June. I’m torn on paying ERC of £950 or ride it out for a bit longer. I want to move too but would cost a lot of money to downsize so pointless at the moment

J x"

I suppose it depends on size of mortgage and how much you can afford to pay more if they rise. For me the decision to fix for five years us probably the best but just thought some thoughts from others will help crystallise my thinking

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By (user no longer on site)
over a year ago

They will never reach the rate they were 20 yrs ago. The markets will not allow it. This is only sort term.

In 12 months there will be a big recovery.

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By *om and JennieCouple
over a year ago

Chams or Socials


"If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds

Thank you. I am rather inclined to go with the 5 year fix I have been offered as it was before the recent rises and still not a bad rate. I think for long term piece of mind in case they rise dramatically like they did twenty odd years ago and it was a big hike though it was a small mortgage then so I was OK at the time but many lost their homes.

We’re not due to renew until June. I’m torn on paying ERC of £950 or ride it out for a bit longer. I want to move too but would cost a lot of money to downsize so pointless at the moment

J x

I suppose it depends on size of mortgage and how much you can afford to pay more if they rise. For me the decision to fix for five years us probably the best but just thought some thoughts from others will help crystallise my thinking "

Payments will go up £70 a month if we fix without borrowing more or do nothing & revert to SVR. Would love to borrow more for solar panels, new bathroom & roof repairs…. an extra £20k is an extra £200 a month. Current mortgage is 33% LTV on 2.29% would go up to 40% on 4.43%. I’ve never really had to think about this properly before as rates were always falling. I don’t want to adult anymore

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By *ryandsee OP   Man
over a year ago

Yorkshire


"They will never reach the rate they were 20 yrs ago. The markets will not allow it. This is only sort term.

In 12 months there will be a big recovery."

You are probably right and let's hope so. Like I said it all depends on individual circumstances and how much mortgage you have left. The ERC on mine will not be huge so if they drop back to almost nothing I can look at paying it and fix at a new rate.

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By *ryandsee OP   Man
over a year ago

Yorkshire


"If you can fix it for 12 months then yes. But that is impossible.

It's a gamble but ride out the storm and the penny's will turn into pounds

Thank you. I am rather inclined to go with the 5 year fix I have been offered as it was before the recent rises and still not a bad rate. I think for long term piece of mind in case they rise dramatically like they did twenty odd years ago and it was a big hike though it was a small mortgage then so I was OK at the time but many lost their homes.

We’re not due to renew until June. I’m torn on paying ERC of £950 or ride it out for a bit longer. I want to move too but would cost a lot of money to downsize so pointless at the moment

J x

I suppose it depends on size of mortgage and how much you can afford to pay more if they rise. For me the decision to fix for five years us probably the best but just thought some thoughts from others will help crystallise my thinking

Payments will go up £70 a month if we fix without borrowing more or do nothing & revert to SVR. Would love to borrow more for solar panels, new bathroom & roof repairs…. an extra £20k is an extra £200 a month. Current mortgage is 33% LTV on 2.29% would go up to 40% on 4.43%. I’ve never really had to think about this properly before as rates were always falling. I don’t want to adult anymore "

My new fix will mean about only £80 more than currently paying on a previously 5 year fix but worth it in my opinion for a piece of mind.

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By *oodmessMan
over a year ago

yumsville

Not financial advice as I've no clue what impacts what and if anything below directly impacts mortgages but I can only tell you what I read on business pages each day.

Rating agencies like Fitch and S&P Global have downgraded the UK to AA- based on negative growth outlook. The only one left is Moody's later this month. UBS and commentators from Bloomberg have come out and said the UK is uninvestable, which is not only shocking it wakes Banks and Hedge Funds up to multiple possibilities - financial stresses, bankruptcy's, financial crashes, political change, then potential nuclear option.

Opinions do change quickly depending on policy - China was deemed univestable earlier this year due to it's mortgage hole and tech clamp down but has somehow managed to change course only months later.

The possibility of recession though was only being muted about by one or two earlier this year, now it's marked for most major economies. For anyone to think Kwarteng, Truss and Mogg are going to beat an inflationary environment with false promises they must have sand in their heads.

The value of the £ will continue to fall (part politics, more strong US economy I think). The BOE is going to continue to increase rates meaning unless lenders are forced, will only offer loans and mortgages at the going rate. That rate is staying pretty high, if not increasing daily, unless government backed as is now rumoured.

That's my rambly world view.

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