Lock In Now or Wait for Lower Rates?

Calculate whether to fix your mortgage rate long-term now or take a shorter fix betting on future rate drops. Compare different scenarios and see potential savings.

Remortgage Calculator

Single rate period

Period 1

Multiple rate periods

Period 1

Period 2

Quick Tips for Comparison

  • Compare total costs including all fees, not just monthly payments
  • Consider how realistic future rate predictions are
  • Factor in the cost and hassle of multiple remortgages
  • Think about your future plans and need for certainty

Expert Insights: Making the Right Mortgage Decision

Market Analysis

Current mortgage rates are influenced by economic factors including inflation, central bank policies, and market conditions. Understanding these trends helps make informed decisions about fixed-rate periods.

Risk Assessment

Your personal circumstances, including job security, future plans, and risk tolerance, should guide your decision between longer and shorter fixed terms.

Cost Analysis

Beyond interest rates, consider arrangement fees, valuation costs, and potential early repayment charges when comparing mortgage options.

Frequently Asked Questions

Essential Mortgage Terms

APR (Annual Percentage Rate)

The total cost of borrowing expressed as a yearly rate, including fees and charges.

LTV (Loan-to-Value)

The ratio between your mortgage amount and your property's value, expressed as a percentage.

SVR (Standard Variable Rate)

The default rate you'll move to when your fixed term ends, usually higher than fixed rates.

Early Repayment Charge (ERC)

A fee charged if you repay your mortgage or overpay beyond allowed limits during the fixed term.

Arrangement Fee

An upfront fee charged by lenders for setting up your mortgage, can significantly impact overall costs.

Remortgage

Switching your mortgage to a new deal, either with your current lender or a different one.

Mortgage Decision Checklist

Compare total costs including all fees, not just interest rates
Check early repayment charges and overpayment allowances
Consider future plans (moving, home improvements, etc.)
Assess your risk tolerance and need for payment stability
Research market forecasts and economic indicators
Calculate affordability for different rate scenarios
Review your credit score and improve if necessary
Build a larger deposit if possible to access better rates