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I hadn't realised that it's only very recently that the UK mortgage market became overwhelmingly fixed-rate
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this post was submitted on 23 Jun 2023
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UK Economy
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All things being equal, we should be ok. What would you do today? I had a chat with a taxi driver last week about his daughter waiting to get a better rate. I suspect it’s very difficult to time anything like this perfectly, you’re always going to potentially lose out if you fix today for 5, but that safety means you can get that equity paid down for 5.
I expect to go 5yr again because I know I can afford it and I'm risk averse.
Paying up for a 2yr fix now followed by a cheaper 3yr fix when it expires might work out cheaper overall (if rates do come down in 2025/6 as people expect) but there's enough uncertainty in the economy/politics/geopolitics that I'd prefer not to take the chance.
Mine 5 yr fix ends in early 2027, I think if rates are still high I’ll only fix for 2 years next time, it’s a dice roll but I think eventually we will stabilise around 3-3.5% base rate