To fix or not to fix... that is the question?

January 19, 2015 by Rob Kahl

To fix or not to fix that is the question?

There seems to be a war starting with mortgage lenders which could be great news for borrowers. With interest rates at an all time low and not looking like they are going to increase any time soon, lenders seem as keen as ever to give you a mortgage.

There is still an issue with MMR which is about affordability, and understandably the lenders have to have a great deal of evidence that you can actually afford the monthly repayments, but, if you can, some of the new rates really are amazing.

A lot of what you can borrow will depend on your loan to value, deposit and earnings but, with a general election looming, it looks like the interest rates are going to stay the same for a little while. Historically, lenders seem to offer these rates for a limited time only and then they are gone forever, however, I am confident that some of the rates currently on offer are here to stay for the forseeable. 

My mortgage broker Matt Wacogne from The Mortgage Concierge has been in the business for 20 years and has never seen rates like it. He is currently recommending a Barclays deal with a fixed rate of 2.99% for 10 years. With some banks offering 4% for savings this really does seem a fabulous deal and having the knowledge that your rate will not change for 10 years will not only give you piece of mind, but allow you to plan and save. 

If you would prefer to fix for a shorter term, there are even better rates out there. For investors looking at buy to let mortgages, rates on offer are similar and and can be set for 5 or 10 years as well. This type of mortgage is great for any landlord as knowing that your 'rent's' are due to increase all the time, having a fixed mortgage repayment only add's to the profit. 

I may have been in the business for many years, but I will freely admit that mortgages are not my strong point! It is a minefield out there with thousands of products from hundreds of lenders. I would stress to anyone to take independent advice when they are looking to buy a property or re-mortgage. Make sure it is someone that has access to all of the products and is not tied to particular lenders otherwise your choices may be limited.

If you would like some free advice then please call Matt from Mortgage Concierge on 01702 762000 or visit http://www.mortgageconcierge.co.uk