You can't get away from speculation about interest rates at the moment with almost daily opinion and comment in the newspapers.
Yesterday's news about UK growth rates may now dampen some of the speculation but the thing with so called "experts", is that they change their opinion every time some new and unexpected news arises!
The only choice for the rest of us when deciding to fix or not (or when), and with our TARDIS and crystal balls out of action, is to consider the consequences of "what if" the worst did happen? Maybe, better to be "safe than sorry", if an increase in rates could prove unaffordable and result in the loss of your home? It really depends on an individual family's budget and how much "fat is on the bone" i.e. non essential expenditure that could be culled if rates did increase dramatically and quickly.
Just for the record SWAP rates which are rates that bank's base their fixed rate pricing on have changed as follows:
2 Year Fixed: 1.23% (12m ago) 1.4% (6m ago) 1.76% (last month) 1.77% today (1.81% last week).
5 Year Fixed 2.04% (12m ago) 2.42% (6m ago) 2.88% (last month) 2.91% today (2.94% last week).
You can work out for yourselves what margins banks are charging above these rates and it is very true that actual rates charged no longer closely relate to market SWAP rates.
To chat further and discuss your re-mortgage options, just get in touch.
Wednesday, 26 January 2011
Friday, 7 January 2011
Some better news for Landlords
Throughout 2010 the number of deals available for buy to let has shown a steady increase, albeit from a very low level.
2011 sees one lender launch two new 5 year fixed rates, which in themselves are very difficult to find at the moment.
The good news continues in that the interest rate and fees are very reasonable in a market place where fees can border on extortion!
The headlines:
Fixed until March 2016 4.99% (60% LTV) or 5.39% (65% LTV).
£250 Booking Fee and No Arrangement Fee!
Free basic Valuation and for re-mortgages they will include Free re-mortgage transfer service.
2011 sees one lender launch two new 5 year fixed rates, which in themselves are very difficult to find at the moment.
The good news continues in that the interest rate and fees are very reasonable in a market place where fees can border on extortion!
The headlines:
Fixed until March 2016 4.99% (60% LTV) or 5.39% (65% LTV).
£250 Booking Fee and No Arrangement Fee!
Free basic Valuation and for re-mortgages they will include Free re-mortgage transfer service.
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