Time to Fix? - 27th January 2009

Author: Gavin Elley Posted on: 27 January 2009

Guessing the bottom of the market is never easy. Whilst those that are on tracker rate residential mortgages or indeed lender’s standard variable rate are reaping the benefits of historically low interest rates there is also a feeling that this will not last forever.

Bank base rate will continue to fall, the sentiment appears to be that it will soon be at or close to zero, but after that what then?

I’m getting interest from clients looking for a fixed rate mortgage and be sure of their interest rate for the next 4-5 years and taking advantage of the lower market rates. That seems a sensible approach provided that the timing is right. As an example there is a 5-year fixed rate remortgage at 4.89%, 75% loan to value with a refunded valuation and free legals…that’s not bad at all.

Remember, when everyone starts talking about fixed rates the best mortgage deals may have already gone!