Should I Fix My Mortgage Now or Wait for Rates to fall?
Headlines about mortgage rates, inflation and the Bank of England have left many borrowers wondering whether they should fix their
mortgage now or wait. Following a period where rates had fairly consistently been dropping, in March this year rates were on the rise again fuelled by volatility in swap rates and gilt yields. These are key factors in how fixed rate mortgages are priced
While it is natural to hope rates may improve, there is no guaranteed “perfect” time to act. The most suitable decision for you will usually depend on own mortgage, when your current deal ends, what rates are available now, and how much certainty you want over your monthly payments. None of us have a crystal ball and the volatility in the markets shows that things like international shocks can impact our domestic economy.
At Your Mortgage Expert, we help clients understand their options and help you make informed decisions about whether it makes sense to secure a deal now or hold off.
What should you think about before deciding?
Before deciding whether to fix your mortgage now or wait, it helps to look at the bigger picture.
Things to consider include:
- when your current mortgage deal ends
- whether early repayment charges (ERCs) may apply
- the rates currently available to you
- whether you could afford a higher payment if rates stayed higher for longer
- whether certainty matters more to you than waiting for a possible improvement
- whether a fixed or more flexible option may suit you better
The key question is not simply what rates might do next. It is what decision makes the most sense for your circumstances.
Why some borrowers choose to fix now
For many borrowers, fixing now can feel like the safer option.
When making the decision whether to fix now, you might want to weigh up the following:
- your current deal is ending in the next few months
- you want certainty over your monthly payments
- you would rather secure a deal than risk rates rising again
- you are happy with a deal currently available
- you want time to review alternatives later if better options appear before completion
Many mortgage offers are valid for a period of time, so acting early can sometimes give you protection now while still allowing some flexibility if the market improves before your deal changes.
Why some borrowers may decide to wait
Some borrowers may prefer to wait, particularly if they believe rates may improve or if they want a more flexible product.
Waiting may appeal if:
- your current deal has a long time left to run
- early repayment charges would make switching too expensive right now
- you are comfortable with some uncertainty
- you want to keep an eye on rates for a little longer before committing
- you can afford to potentially pay more than should rates continue to rise before you have locked in a new deal
However, waiting always involves some risk. Rates may fall, but they may also stay similar for longer than expected or rise again.
What happens if you do nothing?
If your current fixed rate mortgage deal is coming to an end, doing nothing can be costly.
In many cases, once your deal expires, your lender will move you onto their Standard Variable Rate (SVR). This is often higher than your current deal, which could mean your monthly payments increase.
That is why it is usually sensible to start reviewing your options early before your current mortgage term ends.
Is a fixed rate or tracker better?
This depends on your attitude to risk, your budget and how much certainty you want.
A fixed rate mortgage gives you payment certainty for the length of the fixed period. Many borrowers value this because it makes budgeting easier.
A tracker mortgage can be more flexible and may suit borrowers who are comfortable with payments moving up or down. But a tracker is not right for everyone, and it is important to understand the risks as well as the potential benefits.
The most suitable option depends on what you can comfortably afford and how you feel about uncertainty.
How early should I start looking?
As a general guide, it often makes sense to start reviewing your mortgage options around six months before your current deal ends.
This gives you time to:
- compare available options
- understand whether staying with your lender or remortgaging is better
- prepare any documents you may need
- avoid being rushed at the last minute
It can also help reduce the risk of falling onto your lender’s Standard Variable Rate.
Are there early repayment charges to think about?
If you switch to a new lender or a new rate before your mortgage before your current deal ends, early repayment charges may apply. Whether this applies will depend on your lender and the terms of your current mortgage.
That is why it is important not to focus only on the headline rate. The timing of your switch and any charges involved can make a big difference to the overall outcome.
How can a mortgage broker help?
A mortgage broker can help you look at the options available now and weigh them against the risks of waiting. We will also ensure that you understand all the costs involved with remortgaging including any fees that you may need to pay.
At Your Mortgage Expert, we can help by:
- reviewing your current mortgage position
- checking when your current deal ends
- explaining whether early repayment charges may apply
- comparing suitable options
- helping you decide whether certainty or flexibility is the better fit
- guiding you through the process from start to finish
Whether you want to lock something in now or simply understand your options, we can help you make a more informed decision.
Speak to a Mortgage Adviser
If you are wondering whether to fix your mortgage now or wait, speak to Your Mortgage Expert.
We can help you review your current deal, explain your options, and talk through what may be right for your circumstances.
Call us on 01722 322683 or complete our contact form to arrange a no-obligation chat.
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Frequently Asked Questions
Should I fix my mortgage now or wait?
That depends on your own circumstances. The right decision will usually depend on when your current deal ends, what rates are available now, whether early repayment charges apply, and how much certainty you want over your monthly payments.
Is it better to fix now in case rates go up again?
For some borrowers, yes. Fixing now can give you certainty and protect you if rates rise again. However, the best choice will depend on the deal available to you and whether it fits your plans and budget.
What if rates fall after I fix my mortgage?
That can happen. Some borrowers choose to secure a deal early for peace of mind, even if rates might improve later. What matters is choosing an option that is affordable and suitable for your circumstances, rather than trying to predict the market perfectly.
Can I arrange a new mortgage deal before my current one ends?
In many cases, yes. Many borrowers start reviewing their options several months before their current deal expires. This can give you time to compare deals and avoid being rushed.
Will I pay an early repayment charge if I change my mortgage early?
Possibly. Early repayment charges may apply if you leave your current deal before it ends. This will depend on your lender and the terms of your mortgage, so it is important to check before making any changes.
What happens if I do nothing when my mortgage deal ends?
In many cases, your lender will move you onto their Standard Variable Rate. This is often higher than your current deal, which may mean your monthly payments increase.
Is a tracker mortgage better than a fixed rate?
Not necessarily. A tracker may suit borrowers who are comfortable with payments moving up or down, while a fixed rate may suit those who want certainty. The right option depends on your budget, attitude to risk and overall plans.
How early should I look at my mortgage options?
A good rule of thumb is to start reviewing your options around six months before your current deal ends, although this can vary depending on the lender and product.
We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.