Is Now the Right Time to Fix Your Rate?
Wondering if now is the right time to fix your mortgage rate? Here’s how to weigh the risks, goals, and market outlook to make the right call.
When interest rates are moving, one of the biggest questions homeowners and buyers ask is: Should I fix my mortgage rate now, or wait? The answer isn’t always straightforward, because fixing has both pros and cons depending on your situation.
This blog will walk you through what to think about before locking in a fixed rate, and how to decide if it’s the right step for you.
Why people choose to fix
Fixing your rate gives you certainty. Your monthly payments stay the same for the length of the deal, so you know exactly what to budget. For many people, that peace of mind outweighs any downside.
The risks of fixing too soon
Rates move up and down. If you lock in at a higher rate and the market later falls, you could end up paying more. Exit fees can also make it costly to leave a fixed deal early.
How your goals play a role
Your personal plans matter just as much as market trends. Are you planning to move in a few years? Do you value flexibility over stability? These factors should guide your choice.
What the market outlook tells us
Economists, lenders, and the Bank of England all influence rates. Keeping an eye on where inflation and the base rate are heading can help you judge timing.
Balancing risk and reward
There’s no crystal ball. The key is weighing stability against flexibility, and making sure the deal fits your life as well as your finances.
Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.
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It gives you certainty over your monthly repayments, protecting you from rate rises.
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You won’t benefit from lower payments unless you leave your deal early, which can be costly.
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It depends on your goals, shorter fixes give flexibility, while longer ones provide more stability.
