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I need advice on what is the best plan in the future

  • 23 September 2023
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I am coming to the end of my current 2 yr fixed plan and I have no idea what to do. Should I go for a one yr fixed or a variable. My current knighthood is around £80.

 

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Best answer by Firedog 24 September 2023, 00:33

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Hi @Flan , well that’s the $64 million question isn’t it? - although I think a knighthood would be more than £80 😉

We know that the price cap is reducing from 1st October and many think approaching winter, it would be difficult for more reductions as we use more power. But who really knows ? There are a few more fixed rates around but they generally have a significant exit fee. Ultimately you’ll need to take your pick.

Cornwall Insight is a well known forecast group which might be a useful read for info

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The current thinking is that much of the October reduction in the price cap will be clawed back in January, and what happens after that is pretty much crystal ball stuff, although Cornwall are predicting price reductions in April and again in July 2024. It’s only a few weeks ago that they were predicting increases, so who knows?

Since most fixed-rate deals currently available aren’t very different from the standard variable tariff (SVT), it’s still a gamble whether fixing will save money or not. As BPLightlog points out, it may well be the exit fees that put people off fixing just in case the SVT turns out to be more attractive sometime next year. Some consumers may be prepared to accept the risk of losing out by fixing just to have the peace of mind that fixing brings. 

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