Hi Sandy, You're right - for many years it has felt like a case of how long you fix for, rather than should you fix, but with the current market both fix and variable are credible options, depending on your circumstances. Fixes are currently higher with the expectation of higher rates to come - variables are therefore lower currently, but expected to increase as the base rate does. However the forecasts on rates are forever changing, which makes taking advice and completing research even more valuable, for most people.
@@crescentmortgages Hello again, plus with a variable rate you can overpay as much as you want. I'm down to my last £20,000 so I don't think many banks would want to get me on a fixed rate. What do you think?
@@sandysanderson8588 The overpayment facility is certainly useful on a variable, particularly when rates are higher. Fixed rates also allow you to overpay, but generally cap at 10% of the mortgage balance, which isn't as helpful when you're approaching the end of your mortgage (and therefore it is smaller). Your bank will not mind you being on a fixed rate with a smaller mortgage, as it makes no real difference to them on the size of the mortgage. One major benefit you have is that interest rate fluctuations do not have as much of an impact on smaller mortgages - so the sharp increases we've seen over the last month or so will have a much smaller impact on your payments than the typical, average mortgage.
You just don't have to have a fixed rate, my mortgage was cheaper on a variable rate, Swings and roundabouts?
Hi Sandy,
You're right - for many years it has felt like a case of how long you fix for, rather than should you fix, but with the current market both fix and variable are credible options, depending on your circumstances.
Fixes are currently higher with the expectation of higher rates to come - variables are therefore lower currently, but expected to increase as the base rate does. However the forecasts on rates are forever changing, which makes taking advice and completing research even more valuable, for most people.
@@crescentmortgages Hello again, plus with a variable rate you can overpay as much as you want. I'm down to my last £20,000 so I don't think many banks would want to get me on a fixed rate. What do you think?
@@sandysanderson8588 The overpayment facility is certainly useful on a variable, particularly when rates are higher. Fixed rates also allow you to overpay, but generally cap at 10% of the mortgage balance, which isn't as helpful when you're approaching the end of your mortgage (and therefore it is smaller).
Your bank will not mind you being on a fixed rate with a smaller mortgage, as it makes no real difference to them on the size of the mortgage. One major benefit you have is that interest rate fluctuations do not have as much of an impact on smaller mortgages - so the sharp increases we've seen over the last month or so will have a much smaller impact on your payments than the typical, average mortgage.