|
 Mortgage
borrowers seem to be asking this question more and more; the
dilemma is: at what stage do I lock in to a fixed rate to
guard against possible future rate increases. The answer may
not be a simple one...
From previous articles you will be aware that rising inflation
is putting the Bank of England under pressure to increase
rates. However, how long before they rise and by how much ?
These are important questions.
Economists, it seems, are increasingly putting in doubt
any sharp increase in interest rates – suggesting a longer,
slower, climb in rates as more likely. This being the case,
and given the current level of fixed rate mortgage deals
available, if you locked in today, how would a fixed rate lock
in stand up in the short medium and long term ?
Many variable rates, but not all, are lower than most of today’s fixed rates. It’s fair to say that, in
general, interest rates would need to rise a fair bit for
current fixed rates to be cheaper for those with existing
mortgages.
It’s not as simple as what rates are available, it more a
question of:
Looking at your personal situation and assessing whether your
finances can cope with a 1%, 2% or even a 3% rise in the Bank
of England Base Rate. If you are unsure how that would impact
on you let MDFS calculate it for you. If you think you might
struggle then perhaps the time has arrived to consider a fixed
rate and peace of mind.
Call us and we will tell you what’s currently available and
what you payments could be if interest rates were to rise.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON YOUR MORTGAGE
We normally do not charge a fee for mortgage advice, however a
fee paying option is available. Our typical fee would be £500.
|
