Is now the right time to get a fixed rate mortgage or should I wait? i.e will the offers get better or worse, yes I know u have not got a crystal ball but what does your gut tell you?
My gut tells me that interest rates will continue to go down for a little while, maybe 6 months. The price of houses actually went up rather than down last month (contrary to predictions) so my guess would be as soon as every one is convinced prices have stabilised, interest rates will start to creep up again. You could take the middle ground and go for a capped rate, then you’d get the benefit of any lower rates, but know that they won’t rise beyond a certain level.
Anyone thoughts about fixed rate mortgages?UK?
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January 31st, 2010 at 8:31 am
My gut tells me that interest rates will continue to go down for a little while, maybe 6 months. The price of houses actually went up rather than down last month (contrary to predictions) so my guess would be as soon as every one is convinced prices have stabilised, interest rates will start to creep up again. You could take the middle ground and go for a capped rate, then you’d get the benefit of any lower rates, but know that they won’t rise beyond a certain level.
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January 31st, 2010 at 9:05 am
Interest rates have been dropping for some time. It’s unlikely to drop significantly but not entirely impossible we’ll see another fraction of a percent cut in an attempt to avert the predicated depression caused by slumping property values.
When house prices have stabilised or, at least, the market regains confidence that it’s done so, I expect we’ll see BofE raise the interest rates again so it would be a good time to borrow at a fixed rate while it’s low.
Were I were forced to buy a new mortgage now I’d probably negotiate a fixed rate to be safe but if your existing mortgage product is competitive I’d be inclined to wait a little longer until the doom mongers predictions have either come true or blown over.
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January 31st, 2010 at 9:49 am
Its really a matter of your finances and how you want to control things. I had a fixed mortgage for five years, and at the end of the term things had pretty much balanced out, I mean i was paying higher than the rate for some of the term and lower for the rest. The big thing was that I knew what was going to come out of my salary every month and that way it made planning much easier. Given the current climate I cant see interest rates coming down much more, so my advice would be to go for it if you can get a decent rate. Good luck.
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