Paul Geary is coming to the end of his five-year fixed-rate mortgage. From September he will pay hundreds of pounds more a month. Should he fix again now, or take a tracker and wait for rates to drop?
More than 100,000 people are facing this dilemma every month. Many, like Geary, increased their mortgage while rates were low, borrowing more for home improvements or to help with the rising cost of living. The market today is significantly different from what it was a few years ago. The average five-year mortgage rate was 1.99 per cent in August 2020, but is 5.5 per cent today, adding thousands of pounds to what homeowners have to repay.
The decision about what to do when you come to the