Protect against a mortgage rate rise by fixing a low rate now.
The best form of protection against a mortgage rate rise is a long term fixed mortgage product. As some home-owners could find it difficult to cope if mortgage rates rise, switching to a new long term deal could be the answer.
A mortgage rate rise may happen but no one knows when and by how much the rates may increase. Brokers at Deal Direct feel that fixed rate mortgage deals may be the simplest way to gain security and peace of mind over future mortgage costs.
Mortgages rates may not remain at historic lows forever, but fortunately there are currently some really great lender offers under the 4 per cent rate level over a 5 year fixed term.
Generally lenders are experiencing increased funding pressures. It is possible that with increased interbank funding issues and ongoing eurozone problems mortgage rates may rise in 2012, which would make it sensible to fix a deal now.
Research from the Halifax shows that mortgage rates dropped from around 5.75 per cent in 2008 to around 3.63 per cent in 2011. This was in response to the BOE’s low 0.5 per cent base rate. The base rate is not expected to increase for the time being, however interbank funding costs may increase which may lead to a mortgage rate rise.
Deal Direct have our finger on the mortgage market pulse. We are familiar with different mortgage providers lending criteria and their very best mortgage deals. For those of you concerned about a mortgage rate rise contact us and we will search the market for most competitive deal on offer.
Contact us by filling in our enquiry form
or
simply telephone 0800 048 8828
