It is one of the most common questions we hear from borrowers right now: should I lock in a fixed rate, or hold off in case rates fall further?

There is no single correct answer. But there are a few straightforward questions you can ask yourself that will help you make a sensible decision for your own situation.

What does fixing actually mean?

A fixed-rate mortgage locks your interest rate for an agreed period, typically two, three or five years, though longer terms are available. Your monthly payment stays the same throughout, regardless of what happens to the Bank of England base rate or your lender's standard variable rate.

A tracker or variable rate mortgage moves in line with the base rate or another benchmark. Payments can go up or down as rates change.

The case for fixing now

Certainty is the main argument. If you fix today, you know exactly what your mortgage will cost for the next two, three or five years. That makes it easier to budget and removes the risk of payments rising sharply if rates move in an unexpected direction.

Fixed rates have come down significantly from their 2023 peaks, so the deals available now are considerably more competitive than they were a few years ago. Waiting for rates to fall further is a reasonable hope, but it is not a guaranteed outcome. Every month spent on your lender's standard variable rate is typically a month of paying more than you need to.

The case for waiting

If your fixed deal has not yet ended and rates are expected to fall, it may be worth waiting until you are closer to your renewal date before committing. Fixing early can mean paying an early repayment charge to exit your current deal, which can outweigh any saving on a lower rate.  Here at Aspect, we can often secure a rate early but then resubmit the case nearer to the completion date if rates have fallen.  This gives you the security of a locked-in rate combined with the flexibility to access a better deal if one is available.

Some borrowers opt for a short-term tracker rate in the meantime, accepting some uncertainty in the hope of benefiting from future cuts before moving onto a fixed deal later.

Key questions to ask yourself

When does your current deal end?

If you are within six months of your deal ending, most lenders allow you to secure a new rate now and move onto it when your current deal expires, with no early repayment charge to pay. If that applies to you, there is little reason to delay. If your deal has more than six months to run, the calculation depends heavily on the size of any charge for leaving early.

How would a payment increase affect you?

If your monthly payments rose by £150 or £200, would that cause you genuine difficulty? If so, the security of a fixed rate is likely worth more to you than the potential saving from waiting.

How long do you plan to stay in the property?

If you expect to move within two years, a shorter fixed term or a fee-free tracker may serve you better than locking into a five-year deal with early repayment charges attached.

What is your appetite for uncertainty?

Some people prefer to know exactly what their outgoings will be each month. Others are comfortable with some variation if there is a chance of paying less. Neither approach is wrong. It comes down to your own circumstances and peace of mind.

What about a product transfer?

If you are an existing borrower coming to the end of your deal, your current lender will almost certainly offer you a new rate. This is sometimes called a product transfer or rate switch and can be quick to arrange. However, your lender's retention offer is not always its most competitive, and it is worth comparing it against the rest of the market before you commit. A broker can do this quickly and tell you whether switching lenders would save you money.

Getting the right deal for your situation

The most useful thing you can do right now is get proper advice rather than trying to guess at where rates are heading. We can review your current mortgage, check what is available across the whole market, and help you work out whether fixing now makes sense.

Take a look at live mortgage rates to see where things stand today, or visit our remortgage page to find out more about how the process works.

Ready to find out more?

We help borrowers review their mortgage at every stage, whether you are coming to the end of a deal or just weighing up your options. Find out more about how we support remortgage clients here: https://aspectmortgages.co.uk/mortgages/remortgage

Or get in touch with our team directly. We are happy to talk through whether now is the right time for you to act.