With interest rates at historical lows, it may be worth considering whether or not you should fix it. At least one of our lenders is offering a 5.49% fixed rate for 5 years - that's low.
Following are some guidelines, which may help you decide:
If you're on a tight budget, fixing your interest rate will at least give you peace of mind, knowing your repayments won't change during the fixed rate period.
Generally fixed rate mortgage products have a penalty, if you pay out your mortgage before the end of the fixed period.
If you know your circumstances are likely to change during the fixed rate period (e.g. updating your home, expecting a child, changing jobs, coming into some money, etc.), it's may not be a good idea to fix your rate, as you may have to change the mortgage, and therefore you may incur a penalty.
If you pay more than the minimum monthly repayment, you may want to consider only fixing a portion of your mortgage, so you can pay off the variable portion without penalty.
Fixing interest mortgage interest rates needs careful consideration. If you're unsure, Contact Us, and we'll provide a free assessment for your peace of mind.
Tags:Mortgages and Finance |