Next Stop Recession?

Spartacus

Member
Messages
3,132
My mortgage is up for renewal next month. Interest rates are steadily climbing and have been since late last year. Now do I get a five years fixed at 2.91% for peace of mind or will a recession mean that interest rates will go down again to combat it? Personally I think they will continue to rise for the next couple of years and then start to come down again so a fixed 5 year would be the best as you are sure what you are paying every month and with the security of if there is a massive hike and the sh1t hits the fan you are safe.
 

GeoffCapes

Centenary Club
Messages
13,231
My mortgage is up for renewal next month. Interest rates are steadily climbing and have been since late last year. Now do I get a five years fixed at 2.91% for peace of mind or will a recession mean that interest rates will go down again to combat it? Personally I think they will continue to rise for the next couple of years and then start to come down again so a fixed 5 year would be the best as you are sure what you are paying every month and with the security of if there is a massive hike and the sh1t hits the fan you are safe.
At 2.91% fixed for 5 years, I'd bite their hand off!
 

Tallman

Member
Messages
887
When faced with these decisions ask yourself what is worse. Fixing it and losing out on a (probably on average small) decrease or not fixing it and running the risk of a large increase.

Another way of taking a decision if you can’t make one easily is to draw one out of a hat. If the one you draw makes you feel good then go with that one, if not, it should be the other one. But maybe not the best method for this type of decision…
 

midlifecrisis

Member
Messages
12,879
I'd fix at 2.5 at 5 years if not longer. The payments are not much different from 0.5%to 3% but over 3 they get a lot worse. Can you fix at 10years? I see trouble ahead
 

dem maser

Moderator
Messages
33,646
I'd fix at 2.5 at 5 years if not longer. The payments are not much different from 0.5%to 3% but over 3 they get a lot worse. Can you fix at 10years? I see trouble ahead
hard to go with a fix rate of 10 years......if anything happens and you need to sell or move on then the penalties are huge making it hard to sell
5 years in current circumstances are best
 

midlifecrisis

Member
Messages
12,879
hard to go with a fix rate of 10 years......if anything happens and you need to sell or move on then the penalties are huge making it hard to sell
5 years in current circumstances are best
True, but everything is a gamble.
I have 2 mortgages; a 5-year fixed ending in Jan 23 and a 10 year fixed ending in Jan 26. Now do I get a 3 year fix on the one ending soon and then group them together, so that I can explore the wider market or do I stick with my current lender and fix long term and ride out and rises in BoE rate...

Who's got the SM crystal ball?
 

Gazcw

Member
Messages
6,199
True, but everything is a gamble.
I have 2 mortgages; a 5-year fixed ending in Jan 23 and a 10 year fixed ending in Jan 26. Now do I get a 3 year fix on the one ending soon and then group them together, so that I can explore the wider market or do I stick with my current lender and fix long term and ride out and rises in BoE rate...

Who's got the SM crystal ball?
I think Crud has a crystal ball
 

dem maser

Moderator
Messages
33,646
True, but everything is a gamble.
I have 2 mortgages; a 5-year fixed ending in Jan 23 and a 10 year fixed ending in Jan 26. Now do I get a 3 year fix on the one ending soon and then group them together, so that I can explore the wider market or do I stick with my current lender and fix long term and ride out and rises in BoE rate...

Who's got the SM crystal ball?
id get the 3 year fixed and group them together
 

dem maser

Moderator
Messages
33,646
call me if you need advise or in touch with a personal friend whos a broker....i too have qualifications to broker but have not practiced for a while so best someone else helps