Archive for the ‘mortgages’ tag
Fixed Rate Mortgage Rates
Is it too early to choose a fixed rate mortgage?
I'm on a high SVR with my current mortgage provider, but with inflation growing I'm afraid mortgage rates will soon rise as well. Should I hold my nerve?
Is it too early? NO. You ask a very good question. However, consider the opposite too. Is it too late? Well, not yet. From January 2010, fixed mortgage rates at or very close to historical lows. Financial experts and media, shows that these historic lows not expect to stick around much longer. With that in mind, your variable rate loan, tied to an index is directly linked to the market, making now. However, it will grow in a not so distant future if the experts are correct. With that in mind, it is imperative that you evaluate your plans for future as they relate to your living arrangements and the direct economic impact of these schemes. Ask yourself "Do I plan to stay in my home for 3 years, 7 years forever? "Doing this first will guide you to the answer. If you plan to sell and move soon, the costs of refinancing may not be worth the short time you will have a "safe" fixed rate. But if staying put in your home is your plan, you are encouraged to shop for the best fixed rate you can get right now and expose your bets against the inevitable increase in your variable rate.