When rates bottom out - go onto fixed?

[podgerodge]

Let's say rates tumble as far as 1% - how likely are fixed rates to follow this tumble? And if so, would it not be prudent to ignore the usual "stay on a tracker" advice and move to fixed given that ECB rates will "never" be much lower than 1%? i.e. paying a small premium now might be worth it in the long run...

 

[jimbobman]

i dont imagine fixed rates will go below 3.5%

 

[23rdbuchan]

i dont imagine fixed rates will go below 3.5%

Would 3.5% fixed be worth jumping on for 5, or even dare I say it 10 years?

 

[PaddyW]

If you want security of mind and knowing exactly what amount you will be paying out for the next 5-10 years, by all means do. But that is a decision only you can make.

 

[podgerodge]

If you want security of mind and knowing exactly what amount you will be paying out for the next 5-10 years, by all means do. But that is a decision only you can make.

That applies to fixing at any rate. I took it that 23rdbuchan was asking whether 3.5 fixed was a good bet for fixing on or whether he might get lower?

 

[chrisboy]

Would 3.5% fixed be worth jumping on for 5, or even dare I say it 10 years?

I dont think you'd get offered 3.5% over 10 years..

 

[Caveat]

I'm a bit anal so I always fix. Coming up for renewal in September so relatively speaking, I'll get a good deal - personally I'll fix for as long as I can this time.