I would rather have a fixed rate mortgage. Yes i know there could be a time when interest goes down. But I would rather not risk interest rates taking a higher hike on me.

I think it's definitely the case of interest rates going up - if you notice, the special offers these day have fixed rate mortgages at a discounted rate, before rising up.

I actually think this is a very real reason for so many people now getting into problems - that £1000 mortgage on a discount rate could go up to £1200-£1400 once the discounted fixed rate has finished!!

I agree with Brian. Thats nearly always the case companies attract people with discounted rates but then later on the monthly payments go up quite a bit - depending on the interest rate. If you want to change there is nearly always a fee.