Fixing the mortgage ?

Me and Mrs Skjold are in a bit of a spin. We are unsure as to whether to fix our mortgage repayment at the current rate of 4,2% or ride shotgun, and see how the market plays out? Rumour has it that the rate may even drop to an all time low of less than 2%.

So what would the more money minded arrsers do, or have you yourself fixed the rate and come of better or worse.


p.s when we bought this house 1 year ago the rate was 7%.


Hi SKJOLD, I am waiting a bit myself, if you do though keep an eye on the market get your paperwork ready to apply for a deal if you think the rate is going to go up.
I had the same dilemma fixed mine at 4.25% just before christmas for 5 years only to see interest rates plummet further, however I did not have to pay and admin or set up fees so this was partially offset.
Most lenders will not allow a tracker to fall below a certain level above the base rate so you will still expect to pay above 2% and there is no certainty what is going to happen in future. I would also check the redemption penalties on the trackers now that the rates are so low as they will probably be extortionate should rates rise and you wish to change product. In the end it is down to what you are comfortable paying and if you want certainty in the future should rates rise.

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