To Fix or not to fix....?

I currently have two mortgages one for 52000 on a 2.25 variable rate and another for 251000 on a home loan tracker rate of 1.75. Both repayments are pretty low at the moment as you can imagine and so far it is very manageable.

Recently I was advised by 2 seperate parties working in the banking sector that I should fix both mortgages now for anything up to ten years. This will obviously make repayments much higher (and barely manageable truth be told) but the benefit being that when interest rates rise I will be better off.

Of course, I then sought some one elses advice in the banking sector and they told me never to fix as I am in a very good position.

So now I am totally confused - I know no one has a crystal ball and that there is risk in everything but has anyone any advice as to what would be the best option?

Cheers

aeh2009 said:

so far it is very manageable.
Cheers

Click to expand...

This is the most important point. If it is manageable then I would not fix.
You have a great tracker rate on the bigger mortgage so definitely keep that.

The variable rate mortgage is quite small so as it's manageable I would keep the variable rate on this also. I presume this is an investment mortgage? If so 2.25% is a very cheap rate, if you wish to fix you will be put on investment fixed rate which will be higher than residential fixed rates. There will also be legal fees involved if you wish to switch lender.