[*JAC*]

Hi!

Our mortgage is currently under fixed terms, which expires in March. It will automatically go to Standard Variable.

I'm thinking about fixing it again as the current interest rate is 5.54% - I really can't see the rates reducing that much more in the near future.

Should I fix or leave it standard variable?

Thanks!

[KT1978]

I'd stay on variable and pay off as much extra as I could.

I think rates may still go down but unlikely to go up quickly. Paying extra is better than a fixed rate IMO.

[pinkpineapple]

I considered fixing half of mine but left it all variable. Already gone down twice since Nov lol.

Read some where that it works out the same in the long run and only been a couple times in past ten yrs that fixed was better. As PP said just try to put in extra.

[Bluenomi]

We left ours unfixed when it came off fixed. Since then the interest rate has dropped so much I'm glad we did.

Also the fix rate is usually higher than the variable.

[bondgal]

You could consider hedging your bets and fix some and keep the remainder on variable. That way you can pay extra off the variable if possible, but feel confident that some is locked in at a rate that won't change. I'm not sure of the costs involved in this approach though.

[countrymel]

When we got ours the lady at the bank quietly suggested to leave it on variable... 'for the time being'.

I guess it depends how tight your budget is. We are paying over the required payments so if things do change dramatically we have some wiggle room.

If things were very tight I'd probably insist we fixed at least part of it so that we weren't caught out by an unexpected jump.

My parents had fixed theirs prior to things going crazy in the 1980s - I can clearly remember Mum having to constantly remind Dad when he would start to freak out when the news would report rates going to 17%, 18% etc. that "Don't worry dear OURS is fixed rate!"

That left an impression on me.

[Kalota]

I'd stay on variable and pay off as much extra as I could.

I think rates may still go down but unlikely to go up quickly. Paying extra is better than a fixed rate IMO.

Agree with this We are on standard variable and not planning on fixing our rate. We are paying off as much extra as we can though. Paying off more than your scheduled repayments is the best way to keep interest down, much more so than fixing your rate.

We are putting every single little extra penny into our mortgage to keep the interest down. We are able to redraw though, so if there is emergency and we need that money we are able to take it out again.

[julzely]

I was told the only reason to fix a homeloan is if can't afford to pay of any extra, otherwise you are better to go variable and just pay off as much as you can.

A good indication of which direction the banks expect interest rate to go in is their fixed interest rate v.s their variable. If the fixed one is lower then the variable they expect to see reductions, if the fixed is higher then the variable they expect interest rates to go up.

[daisydo]

A good indication of which direction the banks expect interest rate to go in is their fixed interest rate v.s their variable. If the fixed one is lower then the variable they expect to see reductions, if the fixed is higher then the variable they expect interest rates to go up.

This is what I have been told also.

[Silver Girl]

My parents had fixed theirs prior to things going crazy in the 1980s - I can clearly remember Mum having to constantly remind Dad when he would start to freak out when the news would report rates going to 17%, 18% etc. that "Don't worry dear OURS is fixed rate!"

That left an impression on me.

Your parents timed that well - it's fantastic it worked in their favour