The increase in market rates [...]]]> It appears that Fixed rates could well have bottomed out and may now start going up again.  Market rates which control fixed rate pricing have increased last week from 2.96% to 3.15%.  This means that it is likely that fixed rates will start going up again over the next week or two.

The increase in market rates is due to a rise in inflation and the government’s failed gilt auction which has left market confidence shaken in these uncertain times.

There are over a million homeowners currently on the standard variable many of whom are waiting for interest rates to drop to their lowest.  For fixed rates that could be now.  The Bank of England has signaled that it is reluctant to lower rates further than 0.5%.  All of these factors point to a bottoming out in rates.

A lot of financial experts are hinting that fixing for 5 years could be a very good idea to ride out the storm.

If you are on the standard variable rate and are thinking about moving to a fixed rate mortgage now would be a good time to start looking.  Speak to your adviser or alternatively (if your adviser hasn’t spotted this change in the markets and contacted you accordingly) if you would like a quote from us call us on 0870 080 2343 or complete the mortgage enquiry form.  We are FEE FREE mortgage brokers offering whole of market advice.

Fixed rates have been coming down over the last year and it is now possible to get a 5 year fixed rate at 3.99%.  Some experts [...]]]> Many people who are thinking about remortgaging or buying now have to decide between fixed rates or tracker rates.  Variable rates don’t seem to be offered by most lenders anymore.

Fixed rates have been coming down over the last year and it is now possible to get a 5 year fixed rate at 3.99%.  Some experts in the industry suggest that fixed rates have bottomed out now and that they could possibly start going back up again soon.

Tracker rates have gone up drastically over the last two years.  It used to be the case that you could have a Bank of England base rate tracker discount.  That is to say, you followed the Bank of England minus a percentage!  Sadly those days are now gone and best tracker rates you can now obtain are Bank of England plus 2.29% giving a current pay rate of 2.79%.

So the question remains.  Which rate would you choose, tracer or fixed?  The answer to this question simply comes down to your own personal risk profile.  A fixed rate will give you the security of an established budget regardless of what happens to the Bank of England base rate over the next few years.  A tracker  means that as soon as the Bank of England rate starts to go up again, so too do your mortgage payments.  The problem is that no one knows when the Bank of England will go up and by how much.