Uncertain times - should you take out a fixed rate mortgage now?
A fixed rate mortgage with competitive rates or a low rate tracker mortgage are both appealing currently. Depending on your financial circumstances and long term property needs either may help you gain more financial stability.
Many mortgage analysts still suggest that mortgage rates will certainly go up but it is less clear exactly when that might be. Some say the interest rates will not rise until the spring of 2014 whilst others feel it may be as early as the second part of 2012.
Borrowers interested in taking out a fixed rate mortgage and getting a good deal are taking advantage of the historically low interest rates. The Bank of England has left its base rate unchanged for some time now at 0.5 per cent and it is predicted by economists to remain there for possibly the next two years.
Whichever one of these occurs borrowers who have reverted to their mortgage lenders SVR (standard variable rate) may want to compare the mortgage market for the latest lender offers.
Other factors that mortgage borrowers should consider as well as the headline rates are all of the fees and expenses that come with the mortgage. Solicitors fees, valuation fees and arrangement fees can all add up and arrangement fees have been shown to be on the rise in recent months.
Many fixed rate mortgage deals are for terms of two, three or five years and deciding which could suit your needs is down to the individual but recently the average rates of all of these fixed rate terms has dropped making a very competitive market at present.
