To fix or not to fix

P

plynch1

Guest
Scenario (hypothetical of course)
Current Mortgage repayments 760 @ 4.2%
Options to fix
4.49 fx to 2008 repayments would be 785.02
4.75 fx to 2009 repayments would be 804.67
4.99 fx to 2011 repayments would be 823.04

The question here is is locking in till 2011 worth the extra 63 a month vs what might happen to interest between now and 2011 or does one pick something in the middle.
 
Only you can answer if the price for the security offered is worth it.

You will get plenty of advice on whether those fixed rate offerings represent a good deal relative to the rest of the market. But only you can decide how much the financial security is worth to you.
 
you're really asking how long is a piece of string? rates could rise as far as 5% in the next five years, but that would take a significant expansion of inflation/growth in the meantime which would make your wage higher too - on the flipside if rates fell back to 2% or below would mean we were heading into recession wherby it may be tough to pay you mortgage anyway. Personally, would fix for the next 2/3 years - there is not much visibilty in the markets after that
 
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