# Mortgage fix

morstar
Posts:

**6,190**
So, not expecting to use the forum for full professional advice, more after opinions.

Depending on what is put in front of me, I fully anticipate fixing my mortgage with a new deal this week. I will have a penalty to exit my current one but in the greater scheme of likely rises, I am not worried about this.

What term would you fix for? I’m reckoning 5 years seems reasonable.

I know there’s dozens of variables, but just seeking opinions. I am working on the theory the spike will surely be 2-3 years as a minimum and I am funding Uni places for the next 6 years.

Depending on what is put in front of me, I fully anticipate fixing my mortgage with a new deal this week. I will have a penalty to exit my current one but in the greater scheme of likely rises, I am not worried about this.

What term would you fix for? I’m reckoning 5 years seems reasonable.

I know there’s dozens of variables, but just seeking opinions. I am working on the theory the spike will surely be 2-3 years as a minimum and I am funding Uni places for the next 6 years.

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## Posts

24,599You also have to factor in that I'm a doom and gloom predictor. 😉

I am not sure. You have no chance.

6,19039,2386,194I am extremely confident that interest rates will go up at a rate of 0.25% every quarter for the next 2 years, probably more.

25,8515,951- Dolan Tuono

16011,7261,51439,23813,699I don't see the base rate going even to 5% and when the energy inflation unwinds, we may enter a period of deflation and recession. I could see the BoE panicking a bit at that point and lowering rates quite quickly.

6,190On this point regarding the belief that interest rates won’t go that high…

In my particular circumstances, I only have a relatively small amount of capital still to pay.

Even if rates drop right back down, my potential savings are relatively small. Conversely my exposure to increases is significantly more. Would this influence your thoughts?

6,194When interest rates were 0.1% there was only one direction of travel. A 5-year fix would have been a great idea, assuming you weren't planning to go down LTV brackets - some of them have a greater impact on repayments than others.

18,752The vast majority of your monthly payment is repayment so the cost of the fix could quickly outweigh the benefits of a lower interest rate.

70,618Lives Here(sorry, I know, glass houses & all that).

6,9736,194My thinking was as follows:

We were in a period of rapid house price rises with no obvious macroeconomic headwinds. I bought a house with quite a high LTV, but with quite a dated decor, so saw two obvious ways to reduce LTV and thus refix at a lower rate - those being general house price rises plus ticking off some easy cosmetic improvements. I assumed interest rates would stay broadly level (that was a bit naive in hindsight, although the last 10 years had set a precedent) and that I would be able to go down through 2 LTV bands, so a refix would be considerably cheaper.

I've made a start on the cosmetic improvements so let see where we get to. Given the location, it should be a reasonably sheltered from any house price shocks so I am hoping I can go down at least one LTV band come Mar-24. Fingers crossed.

Looking back through mortgage offers and emails etc - that's exactly what I thought. It was also £200 per month cheaper, money to be used to fund said improvements.

13,6991,37911,72618,7321 part tracks boe rate +0.17% for the life of the mortgage

The 2nd part I decided to fix last week for 10 years at 3.1%

I've just less than 10 years to go.

Fixed for 10 years as I'm assuming 3% a decent rate for the next 5, and I'd rather fix than gamble on years 6 to 10

Your mortgage may vary

18,73218,7521,37919,91018,7326,1941,379This is why I have always fixed my mortgages, so I don't have to worry too much, even if it's a little more expensive in the short term.

18,73225,851