To fix or not to fix?

July 1st, 2022
Longer term fixed rates (5 years or more) were also traditionally higher than shorter term rates over 2 or 3 years for example.
This is a question we have been asked regularly in recent years but has now almost ceased.

As a result of the numerous rate rises in 2022 clients are considering fixing their mortgages as soon as possible to avoid the threat of any more increases.

We have even had clients wishing to opt out of their existing mortgage deals and take out a new product to avoid having to do so in future when rates are potentially even higher!

Traditionally, tracker or discount rates were lower than fixed rates but always carried the threat of increased monthly payments should rates rise. Rate rises have not really been a significant factor for some time but is certainly on everyone’s radar now.

However, tracker and discount rates have recently become lower and more competitive in a lot of instances over the fixed rate alternatives but, you must be able to factor in any future rate rises and the subsequent impact on your level of monthly payments before taking up this option.

It does however mean there could be savings to be made if rate rises stall and even out.

Longer term fixed rates (5 years or more) were also traditionally higher than shorter term rates over 2 or 3 years for example.

However, that has also shifted as we now advise on rates over 5 years that are lower than the shorter-term options in the market in some cases.

So, what does this all mean for those of you looking to move house or even re-mortgage?
Professional advice is the way to go in these uncertain times and we’ve certainly seen an uplift in enquiries as a result.

If you’d like to take advantage of speaking with one of our expert advisers, then please call us on 01903 815444.


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