Thanks for the great advice. I have been offered 5.45 fixed and 5.29 variable at the moment. So i think i will be going fixed seeing as the rates are loosely predicted to go up by .25 next week.

Thanks again.

Hi

There has been a general feeling that rates may rise again, even before the last rate rise, so, what to choose now?

Well, there is a theory that while rates are rising, the public feels uncertain about rates and is willing to pay a premium for fixed rates. So, lenders have already put up fixed rate prices to reflect this 'uncertainty'. While rates are falling, the public has quite the reverse feeling and won't buy fixed rates, so they can become really quite cheap.

So, at this time, it calls for a cool head - look at the best fixed rate offering, and supposing the above is true and not just a theory, you might look at a 2 year fixed rate. Then compare it to a 2 year discount.

When you look at the 2 year discount, add 0.25% to it and see if you still prefer it.

There don't seem to be many predictions of a further rate rise after the this one, but still, maybe factor in a little bit more than 0.25%.

Then consider the wider product - the fees involved and the tie-in clauses.

From here, you get into more holistic considerations. If rates rise further can you cope? Regardless of what rates do, will you or your partner be having sleepless nights if your rate is not fixed? Are you stretching your budget or miles within and just rate hunting?

So, in summary :- the same rules apply, consider variable and fixed, but factor in a likely rate rise.

Adrian

When you are considering trackers and discounts I would favour trackers.

with the Guardian and BBC expecting the rate to go up by .25 next week, is it a bad time to go for a variable rate?