- Joined
- 21 Jun 2006
- Posts
- 38,372
I can do an early renewal soon (3-4 months), and if rates are still at current level I will be fixing for 5 years, maybe even 10 (so long as product is portable).
I cannot envisage them going lower, and if they do it will only be fractional so not much of a 'loss'. I would rather the stability of a low rate with option of overpayments for 5 years+ than the risk of rates going UP and me only having a short term on it.
But to each their own. We all have different circumstances and different appetite for risk.
You are right they can only go up and if they do go lower due to Brexit when that actually happens then I don't see them going negative. That wouldn't be good for anyone.
I might take a look at the 5 years and 10 years and look at the difference in payments.
My thinking is if I save X amount every month by going 2 instead of 5/10. I can overpay by that and more to get it down. Then I can also use the equity in future to potentially move up the ladder. Being locked in for 5 years or 10 years when you want to move and possibly free up some equity to do the place up would be a nice option to have on the table so I'd rather not fix long term.
My current house is actually fine I could do with a tiny bit bigger so I only envisage one such move in size. Other moves would be to better areas be the more likely option and much more expensive to the point I'd be putting all my eggs in 1 basket. That is the plan though as there seems to be more scum with money these days and infiltrating the half decent areas.