I'm considering fixing my loan, but before I do, I want to consider all the possible reasons as to why I shouldn't.
Interest Rate drops
I'm willing to wear this as its a good trade off against my financial cash flow
Break costs
Locking it in means that if i need to sell the property there may be break costs. Willing to wear this as I do have no intention to sell.
No offset
I have other IP loans I am leaving variable
Loss of negotiation power
I cannot move lenders because I am locked in. I think this is the only one I am concerned about... but should i be? I'm already spread across 2 banks, and my next IP will be with Lender C. Locking in my rate with Lender B means I don't have the same leveraging power... am i just being silly?
Lender A will be 100% variable
Lender B will have 90% fixed, 10% variable
Lender C (haven't decided who this is) will be 100% variable
There will be pretty much even distribution of loans across all 3 lenders.
Therefore, 66% of my loans will be variable, and 33% will be fixed.
Is there anything other disadvantages I may have missed?