Should I Fix My Mortgage Now or Wait for a Better Deal?

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If your current mortgage deal is coming to an end, you might be asking yourself, “Should I lock in a fixed rate now, or hold out for something better?” With interest rates still relatively high, this is a question many homeowners are asking themselves. The choice comes down to securing a fixed rate now or waiting in the hope that rates may drop in the near future.

Why Consider a Fixed-Rate Mortgage?

One of the biggest benefits of a fixed-rate mortgage is the peace of mind that comes with knowing your monthly payments won’t change. Right now, fixed rates are lower than some variable rates, so if you like the idea of stability, locking in a fixed deal could help keep your monthly costs predictable, even if rates fluctuate.

Thinking About a Long-Term Fixed Rate?

Longer fixed-rate deals are becoming more attractive, but if the Bank of England cuts its base rate down the line, future fixed rates might become even more affordable. If you’re tied into a long-term deal when that happens, you could face hefty early repayment charges if you want to switch.

What About Tracker Rates?

Tracker rates are tempting if you think interest rates might go down, as they could lower your monthly payments. But trying to predict where rates are heading is tricky. Whether you should lock in now or wait depends on how you feel about future interest rates and how much you value the budget certainty of a fixed rate.

Managing Future Mortgage Payments

A lot of homeowners are worried about how they’ll manage higher mortgage payments once their current deal ends. It’s worth thinking ahead about how you’ll handle this and if there are any steps you can take now to ease the pressure.

If you’ve got some savings, overpaying on your mortgage could help reduce the amount you owe more quickly. Most lenders allow you to pay up to 10% extra on your balance each year without penalties, but make sure to double-check the terms of your deal before you start.

If you don’t have savings set aside and are worried about affording higher payments when your current deal ends, it’s vital to speak to your lender as early as possible. They might have options or advice tailored to your situation.

Seeking Professional Guidance

Making decisions about your mortgage can be overwhelming, especially when rates and costs are uncertain. That’s why it’s always smart to seek professional advice. We can help you explore your options, whether you’re thinking about overpayments, worried about early repayment charges, or looking for alternative mortgage products.

Whatever the situation, the key is to plan ahead and make informed choices so you can confidently manage your mortgage payments in the future.

 

There may be a fee for mortgage advice. The precise amount will depend on your circumstances and will be agreed with you before proceeding but estimate this to be £499.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Picture of Thomas Honour

Thomas Honour

Business Owner & Principal Mortgage Advisor

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