I know this is a repetitive topic, but it is an interesting one, for me at least.
I am coming off a 3 year fixed and the choices are
SVR 4.5%
1 year fixed 3.6%
2 year fixed 3.6%
3 year fixed 3.6%
I'm not considering anything over 3 year fixed.
I have seen advice here and elsewhere not to choose a fixed option, presumably in the expectation that the variable rate will drop. But to me the best choice would appear to be the 1 year fixed. Obviously if the SVR changes by 1% or more early next year I will lose. But if there is no change for the next 3-6 months, I would save significantly. And by going with 1 year fixed, if there is a big cut then at least I am only locked in for 12 months.
Am I missing any other negatives here?
I am coming off a 3 year fixed and the choices are
SVR 4.5%
1 year fixed 3.6%
2 year fixed 3.6%
3 year fixed 3.6%
I'm not considering anything over 3 year fixed.
I have seen advice here and elsewhere not to choose a fixed option, presumably in the expectation that the variable rate will drop. But to me the best choice would appear to be the 1 year fixed. Obviously if the SVR changes by 1% or more early next year I will lose. But if there is no change for the next 3-6 months, I would save significantly. And by going with 1 year fixed, if there is a big cut then at least I am only locked in for 12 months.
Am I missing any other negatives here?