Fixed rate remortgage products – are they the best deal?
According to latest figures, the majority of remortgaging home-owners are opting for a fixed rate product.
For around 18 months fixed rates have been at historic lows and have offered great value. During this period, they gained ground on trackers and rates have become equally competitive.
With recent news that BoE Governor Mark Carney may cut interest rates below 0.5%, they could once again rise in popularity.
Which option you choose really very much depends on two factors. The first is which analysts do you listen to, those who predict interest rates will remain low for several more years yet, or others who say they are due to rise. What do you believe? The second is how much of a risk are you prepared to take.
If you are prepared to take risk to get a cheap deal, then a tracker may be your product of choice. However you have to accept the risk that interest rates could rise, and if they do you will pay more for your home.
If the idea of taking a risk on what is probably your largest ever financial purchase doesn’t sit well, then locking into a cheap fixed rate deal makes sense.
Whichever option you are considering it makes sense to seek independent advice to find out the pros and cons of both deals and their likely impact on your home-ownership.
If you are planning to remortgage and want to see all deals currently available market wide call an independent and impartial adviser at ‘whole of market’ Deal Direct. Let us help you remortgage to a cheaper offer.
For advice and a low rate quote call 0800 048 8828.
