Should we fix our mortgage while we have a baby?

Q When our three-year fixed-rate mortgage ended last year we reverted to a tracker 0.75% above base rate. I am unsure if we should look for a fixed rate again given I am having a baby soon and intend to return to work only part time. Our current mortgage is around £130,000 and the house is valued at £180,000. As the main wage earner I don't know whether it is better to settle for a two-year fix (I can't find many competitive three- to five-year fixes) in case there is a sharp rate rise, but also because we may be a less attractive mortgage proposition once our income drops. Do you think it is likely rates will go up enough over two years to justify paying extra from now on just to have the peace of mind of a fix? KW A I am afraid I am not very good at second-guessing what interest rates will do, but I can say that for your variable rate to be a worse proposition than a fixed rate of 4.5% the base rate would have to rise to 3.75%, which is a big leap from the current 0.5%. So I would be tempted to stick with your current tracker deal. But at the same time you might want to consider setting aside the difference between what your mortgage currently costs you and what it might cost you on the more expensive fixed rate. Setting aside this £200 or so each month will provide a cushion of money to provide the peace of mind that a fixed-rate deal would otherwise give you.