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I'm pretty confident when the shit starts to hit the fan within the next year they'll have to bring rates back down. You want to be in the position where you can take advantage.
Going for variable right now feels like a totally asymmetric bet (the wrong way) to me. You can still fix for five years at around 3%, which is an awesome deal by historical standards. I fixed at 3.5% back in 2014 and I thought that was great then. Saving 100 bps with the potential for that to grow to 200 bps if recent history repeats itself doesn't seem worth it.
To be frank, if rates go back down again you'll make so much cash on the property appreciating that you shouldn't even care. Or take out cheap additional borrowing to spunk on something.
NickCJ-
I'm glad you were pleased with 3.4pc but I'm fairly sure I had a 2 year fixed deal with Tesco at 1.59 at the end of 2014/start of 2015, and after that then I got a 2 year deal with Halifax at 1.69, and then I got a 2 year deal with platform for 1.79 for 2 years (none of which had any fees attached to them).
So 3.4pc in 2014 might have felt like a good deal but you could have saved a fair amount if you'd taken 2 year deals with no fees, or have I misremembered the deals I previously had?
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Going for variable right now feels like a totally asymmetric bet
I agree with this. It’s like betting the government will step in and sort out gas and electric vs. fixing back in Jan this year. Which I did. What a dickhead.
Faced with preventing some home owners getting fucked vs. Crushing dangerous inflation they will choose to crush inflation as its fucking dangerous right now and the effect of it getting out of control is deadly.
Higher rates also benefit some - typically the prudent middle who decide elections.
princeperch
Howard
I'm in the happy position of not having to worry about rates for just under 5 years having fixed with utter blind luck at O.99pc recently , but we're I in the position of having to refinance in the next few months I think I'd probably risk going on a discount variable for a year or so.
I'm pretty confident when the shit starts to hit the fan within the next year they'll have to bring rates back down. You want to be in the position where you can take advantage. Just my 0.2p worth