Hello everyone,
I’m a first time buyer with my partner.
We’re trying to make a decision about whether to opt for a fixed rate mortgage or flexible rate.
Given interest rates are at a 15 year high, with recent interest rises in quick succession and now the talk of global recession, what would be the better option at this point:
- fix for 3 years @ 4.0%
- opt for a variable rate, right now @ 3.95%
Right now the difference in monthly repayments is negligible and the fixed rate mortgage offers additional benefits (e.g. option to overpay). But with the prospect of a recession, rates will eventually drop and we’ll be stuck with a fixed rate or face penalties to change.
Thanks in advance!
I’m a first time buyer with my partner.
We’re trying to make a decision about whether to opt for a fixed rate mortgage or flexible rate.
Given interest rates are at a 15 year high, with recent interest rises in quick succession and now the talk of global recession, what would be the better option at this point:
- fix for 3 years @ 4.0%
- opt for a variable rate, right now @ 3.95%
Right now the difference in monthly repayments is negligible and the fixed rate mortgage offers additional benefits (e.g. option to overpay). But with the prospect of a recession, rates will eventually drop and we’ll be stuck with a fixed rate or face penalties to change.
Thanks in advance!