To fix or not to fix? (Mortgage)

Discussion in 'General Chat' started by qwerty321, Mar 8, 2013.

  1. qwerty321

    qwerty321
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    Currently going through a house purchase that is almost complete. As it stands, my rate will be fixed till December 2013 at 4.19%. The non fixed rate at the moment is 4.49%.

    With my amount of finance, the difference at the above rates is £13 between fixed and variable.

    The bank sent me a letter yesterday offering me the chance to fix my rate till March 2015, so an extra 15 months. There will be an extra fee of £100 to pay though. So by my calculations, it will save me at least £95 over that term once you take the £100 fee out. Still need to call my account manager at the bank to make sure I understand it correct but that seems to be the gist of it.

    I am not all that savvy with interest rates and whatnot but from what I can see, I don't have much to lose. Can't see interest rates going any lower as the base rate is already at 0.5%. Then if the interest rates do go up in the next 2 years then I only stand to gain as I will still have a fixed rate.

    So, is this worth doing?
     
  2. kevykat

    kevykat
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    i took fixed rate so i knew exactly what i was going to pay out each month for 5 years. the variable could shoot up or down, its the risk you take. if you are on a budget take fixed.
     
  3. 961

    961
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    Have you sought advice from a mortgage broker such as Which? Mortgage Advisers | Impartial advice from someone who is on your side

    That won't cost you anything and may save much. I obviously don't know the details of your mortgage but the rate you mention is not especially low and the period of the fix is not long, even with the extra fee. A 15 minute conversation could be worthwhile
     

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