Over the last 2 years interest rates in the UK have fallen from a high of 6% down to an unbelievable 0.5%. This is the lowest rate in the four hundred years that the Bank of England have been in existence.
Many homeowners have enjoyed the benefits of being on a base rate tracker mortgage that has been linked to the Bank of England rate. The saving have run into the hundreds of pounds each month. But is now the time to remortgae and fix that rate for the long term. There is a possibility that in the near future rates could start to rise.
Many lenders are offering fixed mortgage rates below 5% for upto 10 years, now if rates start to rise these deals are going to disappear along with all the money that has been saved.
This is always going to be a gamble and many people donot like being tied into mortgage deals for a long time as no one can be certain of the future and redemption penalties are going to be high with this type of mortgage deal.
For advice on whether a long term fixed rate would be right for you a mortgage advisor would be a good person to ask. Generally you can get up to half an hour’s free remortgage advice which would give you enough information as to whether this is the right thing to do.
However those that locking now could be reaping the rewords for many years to come so now could be the time to lock into a long term fixed rate remortgage deal.
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Source: http://www.articlealley.com/article_873054_19.html
Source: http://www.articlealley.com/article_873054_19.html