Uk Mortgage Rates
Record Low UK Mortgage Rate – Are a Big Gamble?
To stick or twist? – When you face a mortgage payment plan can be as playing cards – do you stick or twist? Okay, you can reasonably argue that either way it's a gamble, what type of mortgage rate you are taking, real or otherwise.
I'm stick by sticking with the same mortgage interest rate for a fixed period of your choice and twist that goes with other mortgage rate is not fixed.
Do not gamble – When you choose to take a fixed rate mortgage you protect against interest rates going up. Do not cry if they go down because the whole idea a fixed rate is to give you security and the ability to budget. Without a fixed rate you are really gambling that if interest rates rise then it makes your monthly mortgage payments.
Pro's and cons – I've seen people almost in tears because the fixed rate Mortgages they took out half, then they lost big time. What they do not lose was their home. On the downside, I've seen people made homeless because they chose to have a fixed rate and the rate doubled.
Redemption penalties – in football conditions which a penalty is a great advantage for a team and a disadvantage for the opposing team. So it may not surprise you to learn that the same applies to a redemption penalty. When you "redeem" your mortgage (moving to another lender basically) you can pay a fine with a fixed rate mortgage. But it is the norm not to pay a drawback, if there is no fixed rate in place.
Decisions – decisions – decision not to stick or twist, is largely dependent on whether you are risk averse. If you do not like risk (gambling) decision to stick or twist should be easy, stick you of course. But always remember that if you ever need to redeem you could pay dearly in the form of a redemption penalty. Think long, think hard as "Decide in haste and repent at leisure."
About the Author
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