With ten year fixed rates now below 3% and five year fixed rates falling below 2.25%, the market is awash with activity. But is the nation really falling in love with long term fixed rates? Right now, I’d say no. Despite valentines day being around the corner and Fifty Shades of Grey ready to smash all box office records this weekend (don’t get why!?), people are ignoring the romance of their finances and are happy to let their biggest monthly expense carry on at a gamble and remain loyal to their current (lending) partner.!
It’s surprising how many people don’t review their mortgage rates frequently. Many still believe that rates can drop further and some just really can’t be bothered with the hassle to change. The reality is that we are on a knife edge and rates are predicted to increase, but the mortgage pundits are now suggesting 2016 is more of a realistic expectation for a rate rise. As such, many are now taking advantage of the opportunity to remortgage with a free valuation and free legal costs but are chancing their arm with a short term tracker rate (lower rates than fixed, but can fluctuate). Whatever your risk appetite, the options available now are likely to be better and cheaper than sitting on a lenders standard variable rate or reversion rate. Don’t wait until tomorrow, seek advice and save!
Another reason people don’t switch is because they think they are too complex to be helped. In a rapidly expanding market with highly competitive rates, many lenders have looked at other ways to assist customers rather than just pay rates. This can include criteria such as types of property, types of customer, income make up, guarantors, charges on more than one property and so on. The likelihood is that you are not alone in your requirements and there will be a lender out there willing to assist and who probably needs you just as much as you need them!