This is a question that many people have to deal with when considering whether to change their mortgage. The truth is that right now, the best
deal to take could well be a fixed rate. To understand why, let us first look at
the difference between a fixed rate and a variable one. A fixed rate is
one that allows you to pay interest at a certain pre-agreed rate with
your lender throughout your contract. As you may imagine, this can be a
disadvantage should interest rates drop. A variable rate is one that
allows you to pay according to current market rates – if they go up you
pay more but if they drop you pay less.
So why is a fixed rate a good idea right now? Because, the way things
look, interest rates will be rising in the future. The situation in
Greece remains volatile. True, Germany has bailed them out for now but
there are no guarantees that Greece will do any better in the future. In
fact, it has been bailed out quite a few times now but things only
continue to get worse. Unemployment is the highest in Europe,
manufacturing is at an all time low, businesses are having a hard time
paying workers and the government has to borrow to meet payroll. The
prime minister has just resigned. There is no other feasible leader who
can improve things right away. That is not an economy that will get
better in the near future. In fact, it is likely that it will get worse
before it gets better.
What this means for you is that it is much better that you take on a
fixed rate mortgage rather than a variable rate one. What if you are
currently on a Standard Variable Mortgage? Should you change? The answer is most likely,
you should. Even taking one for between 3 and 5 years will make a big
difference how much you have to pay back in the end.
Instead of making a mistake, you should speak to Mortgage Advice Services.
They are the leading mortgage and remortgage consultants in the UK. They
have helped many people get the best deals because they know most of
the lenders in the market. Not only will they get you a deal that you
can afford, they will also confirm to you whether the best remortgage rate right
now for you is one on a fixed rate. You can find out more by calling them on
01332 257 087 or visiting their website,
http://www.mortgageadviceservices.co.uk/remortgage.htm.Labels: fixed rate mortgages, re-mortgage rates, re-mortgaging