Thursday, 12 May 2011

Should You Fix Your Mortgage NOW!?

In a follow up to my last guest blog for The IT Dept (which you can find here) I thought readers might appreciate a bit of an update on the subject – a synopsis to save you having to read all that opinion out there.

Whilst the immediate threat of an interest rate rise has now passed (many were predicting a rise in May, which of course did not transpire) the question is when will rates rise? Or perhaps more importantly for you – when are my mortgage payments going to start going up?

Industry opinion was swinging towards a May or August 2011 rise a couple of months ago. Now predictions are ranging from a rise in November this year to no rises until 2013. In the short term SWAP rates have been coming down quite steadily. This means that that the cost of lenders buying money is cheaper and the mortgage deals available to you, the general public, are getting cheaper. (In English: the mortgage deals available now are the best that they have been for some time).

Whether you should fix or not is largely down to your own circumstances and your attitude to risk. The tips in the last blog should help you assess this. My current opinion on interest rates is that I would not be surprised if we did not see a rise for another 12 months – beyond that your guess is as good as anybodys.

Rachel Gill
Mortgage Adviser with Aspect Mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage

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© Michael Donkin 2011