To track or to fix?
Posted on 6 July 2009 by
Regular readers of the money press will be aware that the recent hot topic has been whether to fix or not. Up until now the overwhelming evidence has pointed towards fixing being the right thing to do. However, the best fixed rates have disappeared over the last few weeks, and the best tracker mortgages are now looking more appealing. It is now a really tough choice for borrowers and no generic advice will do. That said, if I can be generic, if fixed rates do go up by another half a per cent then trackers arguably will look better value.
Of course what a borrower should do will depend on their own specifics and independent mortgage advice is absolutely key as there are so many things to consider. These include the future movement of bank rate, loan size, income, how long you need the loan for and many other things.
As an aside, it will undoubtedly be Morton's Fork for those who have been used to paying very little over the last year when they come to take a new deal, as starting rates are now hugely different, but that is the reality of the market we find ourselves in. Our advice is get advice and make sure you are in the best possible place.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and neither John Charcol nor Drew Wotherspoon will accept liability for them.
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