Personally, I feel that interest rates are likely to fall slightly next year. – See interest rate predictions
However, if your circumstances favour a fixed rate for security and peace of mind. Halifax are offering upto 25 years fixed.
A one year fixed rate is at 6.64% for introductory period followed by 7.75% for the remainder of the mortgage term.
A Two year fixed rate is 6.54%
A 10 year fixed rate is 5.99% for introductory period.
There may be better fixed rate deals in the new year, after we have seen the UK’s first rate cut.
Note on 25 Year Fixed Mortgage.
This is the kind of mortgage which would reduce a lot of the volatility in the UK housing market. If people had this kind of mortgage they would not be so susceptible to small changes in the interest rate. It would also make UK monetary policy less effective as a tool for influencing economic activity.