Frankly no one really knows including mortgage brokers Melbourne. The only thing everyone is agreed on is that they are highly unlikely to go down. They only have 0.5% to go anyway and going down to 0% would really be admitting defeat! The problem that the Bank of England has is that our economy is extremely fragile right now and it needs all the help it can get to keep itself going.
If the economy continues to be rocky for many more months then interest rates will stay low. Who knows what is in store for us economically for mortgage broker? No one can really guess because there are so many variables and so much that’s hidden.
So should I fix my rate?
Really, it’s up to you. Whether you fix or don’t fix you are taking a risk either way. As no one really knows the answer it’s not worth beating yourself up about it!
If you really need to do something about your mortgage then get on and do it now with the help of mortgage brokers Melbourne. Better to be decisive than keep hanging around waiting for something to change…or not.
Take a look at your own situation.
Could you afford to pay more if interest rates went up by 1% or 2% over the next couple of years? Or do you really need to know exactly how much you will spend each month in order to budget properly?
If you need certainty then you should go for a fixed deal and forget what others are saying about interest rates. If rates go up you will be smiling..
David Hollingsworth of London & Country mortgage brokers says that “the key is to make your decision now and then go for it, finding the best deals and products to suit your decision.
If you are a first-time buyer
If you’re a first time buyer getting a mortgage is hard enough already. Banks are much more cautious now than they have been in the past and the days of 100% mortgages appear to be well and truly over.
However, it’s not all doom and gloom for you. The government has been making efforts to encourage mortgage lending again to jump start the housing market. If you have a good deposit and your credit rating is strong, now is a great time to get a mortgage as rates are so low.
If you already have a mortgage
So you have a mortgage now and you’re wondering whether to keep it or switch to a fixed or variable/tracker deal. What should you do?
Again, it very much depends on your situation and the mortgage brokers. As mentioned above a fixed rate is good if you want to know how much to budget for every month.
There are a lot of reasons to fix your rate now, particularly as, according to David Hollingsworth, fixed rates could go up a bit in the next few months. However, they could also come down if mortgage brokers Melbourne are waiting until after the elections to announce new, impressive deals.
You probably have one of the best deals around at the moment but you are probably also wondering whether it’s the right thing to stick with. Should you switch to a fixed deal and lock in those nice low rates now or stick with what you’ve got?
Should you switch to one though with mortgage brokers Melbourne? Perhaps. First Direct are doing a good Lifetime tracker mortgage so take a look at that.