Mortgages

Not that there has been any deflation. The CPI is down to 0%, but the RPI is still hitting 3.2% (see here). I would take RPI as the best measure of inflation, given that the CPI includes house prices, which, although lower, are a much lumpier measure, and the market is currently extremely illiquid.

Ah, see how flimsy my understanding of the whole thing is!

Cheer everyone for your help. I might just bite the bullet and fix at 5.99% for 5 years. Apparently the 10-year average is 5.84% or something so, as has been said, it's a small premium for certainty. I have heard that 5 years is a good term to go for as the market is likely to be on the up in 2-3 years, so getting a product which lasts that long could shaft you when you come to remortgage amidst rising rates.

And cheers esp to Ben for the PM. Will give them a call.