Fixing your mortgage rate in 2016.
While we think it is unlikely mortgage rates will fall back to record lows of early last year, we cannot say this for sure. What we can say is if you do not want to take a risk that factors such as an interest rate rise will push up mortgage rates, fix your rate while you can.
Many home-owners haven’t had a mortgage during periods when rates have increased. Older home-owners will remember a time when interest rates were at 16%, which greatly impacted the amount paid on a mortgage. For younger buyers they have no frame of reference for high rates, and far too many think rate increases are a long way off.
Data released shows house hold debt increasing as consumer confidence is high. If you are in a position where any 2016 mortgage rate increase would leave you unable to manage financially, you are advised to review your offer to see if there is a cheaper mortgage to switch to.
If you have debts you could consider remortgaging to release the equity you have built up to pay them off, this could reduce your overall spending, however this is a step not to be taken lightly. For advice on this point you should speak to a financial adviser.
If you want to discuss your options to decide if you should remortgage in 2016 speak to us at Deal Direct. We are specialist remortgage brokers and after a review of your finances can come up with deals to help you save money or release equity.
For advice and a quote call us today. Let us hep you switch to a cheaper mortgage.
Call us on 0800 048 8828.
