To fix or not to fix

[Montgomery Burns]

Any thoughts on this?

My two year 5% fix comes up for renewal at the end of October. Currently the offer for another 2 year fix from my provider, First Direct is 5.49% - and I do not want to change lenders as the sum outstanding probably doesn't warrant it.

Does anyone have a view as to how the turmoil in the world financial markets might impact on the rate of fixed rate mortgages in the months ahead - if I don't decide to book the rate by Friday I can always revert to the SVR of 1% over base, currently 6%.

Advice will be much appreciated.

 

[merlot somme]

I don't think anyone knows which way things are going to jump at the moment. It's generally thought that interest rates as set by the BofE will fall, probably before Christmas, but there's not much to suggest that even if they do those rates are going to show in the mortgages market. If you can afford the fixed rate being offered now and can see yourself being able to afford it for the next two years...well, it would be one area of certainty that you would have.

 

[heywood blue]

I would definately fix at 5.49% if I could. My 5 year fixed rate ends next May and is currently 5.65%

Having the security of knowing what you are paying each month makes good sense in the current economic climate

Food prices up by 12% on average on last year
Gas and Electric rising every day due to the cut in world oil production, I phoned today for comparisons in Gas and Electric price quotes and the figures I were given are only valid for 24 hours because the market is that volatile
Along with HBOS now being taken over by Lloyds it shows that the recession is biting hard and we will not have turned a corner by Christmas or even early next year

Take the fixed rate in my opinion and BE SAFE.

 

[heywood blue]

I would definately fix at 5.49% if I could. My 5 year fixed rate ends next May and is currently 5.65%

Having the security of knowing what you are paying each month makes good sense in the current economic climate

Food prices up by 12% on average on last year
Gas and Electric rising every day due to the cut in world oil production, I phoned today for comparisons in Gas and Electric price quotes and the figures I were given are only valid for 24 hours because the market is that volatile
Along with HBOS now being taken over by Lloyds it shows that the recession is biting hard and we will not have turned a corner by Christmas or even early next year

Take the fixed rate in my opinion and BE SAFE.

 

[Montgomery Burns]

Thanks everyone for your input.

 

[Danish Blue]

Any thoughts on this?

My two year 5% fix comes up for renewal at the end of October. Currently the offer for another 2 year fix from my provider, First Direct is 5.49% - and I do not want to change lenders as the sum outstanding probably doesn't warrant it.

Does anyone have a view as to how the turmoil in the world financial markets might impact on the rate of fixed rate mortgages in the months ahead - if I don't decide to book the rate by Friday I can always revert to the SVR of 1% over base, currently 6%.

Advice will be much appreciated.

i trade interest rates for a living and I havent got a f**king clue mate. If you get any sensible answers please let me know as Im getting a bit desperate.