Mortgage worries!

Surely now is a great time to get a fixed rate?

(Disclaimer: I am not a home owner so it's not like I track mortgage interest rates diligently)

They can only go up!! slowly I suspect and maybe not over the next 6 months while we see where this increased interest in the housing market is going.

You have to look at the rates compared with current variable rates and work out what the difference will cost you over the period, fixed rate is good if you want to budget and have no spare cash to play with but it will be an expensive option with rates being so slow at the mo and I don't think the interest rate will rocket up.

Trackers no longer give their full benefit because of the low rate (not sure there are any anymore) and of course you have the arrangement fees, solicitors fees and a survey fee depending on what you take so......if you can afford your mortgage at the mo, are happy with the provider and don't need to remortgage for extra cash, I would sit tight for 6 months and see what happens.

But thats only an opinion of course - I am NOT a financial advisor

Rates are unlikely to get cheaper, so logic says that they will get more expensive. Any economic upturn will bring higher interest rates.
With that thought, a fixed rate mortgage is probably the most sensible idea. Shopping around for the fixed rate cheapest mortgage is simplified by using a web site such as: moneysupermarket.com/mortgages

I would do a lot of internet work and then, if there is such a thing, go with a name you trust. Deal direct and do not go through a broker. I have had two dealings with brokers. One mis-sold us an endowment and the other was a bit odd. He called me after I had been doing some internet searches (this is a few years back when I was less savvy) and said I had asked for an advisor to call although I am sure I did not, and even if I did so what? He guilt-tripped me into a meeting and I fell for his prolonged pitch, only to realise later it was a rubbish deal. We cancelled but paid £300 for the privilege! Nowadays we would be protected by legislation, but I am still put off. Go for a company with a reputation to uphold even if it's a small independent Building Society.

I would do a lot of internet work and then, if there is such a thing, go with a name you trust. Deal direct and do not go through a broker. I have had two dealings with brokers. One mis-sold us an endowment and the other was a bit odd. He called me after I had been doing some internet searches (this is a few years back when I was less savvy) and said I had asked for an advisor to call although I am sure I did not, and even if I did so what? He guilt-tripped me into a meeting and I fell for his prolonged pitch, only to realise later it was a rubbish deal. We cancelled but paid £300 for the privilege! Nowadays we would be protected by legislation, but I am still put off. Go for a company with a reputation to uphold even if it's a small independent Building Society.

As said in previous posts, interest rates can't really go any lower, and are likely to steadily rise. Personally, if I was looking at a fixed rate mortgage right now, I would consider fixing for longer than a couple of years, while rates are so low, as you could find that in two years time when your deal ends interest rates are much higher and your mortgage repayments could increase massively. Though it should also be mentioned that long term mortgages are usually slightly more expensive than short term deals.

This is merely my opinion, and when it comes to discussing and predicting the future of interest rates and the property market, all anybody can do is guess, even the so called experts.

Rachelle said:

Can somebody please get out a crystal ball and tell me what interest rates are going to do over the next two years? My deal where I've benefitted from the low rates is about to end and I'm wondering what sort of mortgage I should go for now. My mortgage is pretty massive and I don't have any money so need the cheapest option - ha ha. Nothing new there I suppose! But seriously, is there anything out there that I should absolutely avoid? I was thinking of going with a fixed rate for a couple of years so I know where I am. What do other people think?

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I am as others no financial adviser !!!!

However, the general advice seems to be for those needing to know what level of repayments they are looking at in the future go for a fixed rate.

I personally have a flexible tracker taken out 2yrs ago. I was recently looking at the market and where as my product is 0.5% below base rate, the same bank has just released a new tracker at 2.5% abve the base rate plus arrangement fees etc etc.

The mortgage industry has changed, some say for good. I just hope we and the industry learn from the mistakes.