Fixed rate mortgage or not?

[tigwig]

One part of my mortgage comes to an end in March and I don't know whether to get another fixed rate deal for 6.39 for 2 years or to go onto the variable rate which is 7.4 and hope it goes down. Which would be best?

[WoWo]

What makes you think rates are going to go down? Please don't tell me it's because it said so in the paper....

LIBOR and BOE rate have now become detached and the banks are disregarding the BOE rate. There is far too much inflationary pressure to warrant more than a token rate cut in the next few months and banks know it.

http://news.bbc.co.uk/1/hi/business/7206585.st m

If you can afford it I'd say get another fix.

[BenDToy]

Personally I would recommend a tracker. This would usually be at a lower rate than a variable rate and will go down if the BoE rate goes down. (or of course it will go up if the BoE rate goes up!) My recent one tracks at just below the base rate, and went down last month.

[Finance Guy]

Contrary to WoWo's opinion, I predict another rate cut on 9th Feb. My advice is to review your options with an indepenant mortgage advisor at that time.

Good luck