Mortgage rates have bottomed out and have in many instances risen slightly from their lowest points. Still there is not much appetite on behalf of the banks to raise rates further ahead of a base rate rise which is generally considered unlikely to happen this year. Most of our clients coming off initial incentive rates from their lenders are therefore, opting to move onto their bank's Standard Variable rates because in most instances, this is lower than the cost of taking a new product. We concur with this view point for the majority but for some this would be a dangerous strategy.
As part of Mortgage ID's service to our new and existing clients we undertake a full financial review each time their mortgage comes up for renewal. By doing this we are able to determine how sensitive your financial affairs are to movements in interest rates which will adversely effect your debt burden. If your finances would be destabilised by a rapid increase in rates, perhaps it would be wise to take a fixed rate now and secure peace of mind.
With so much money having been fed into the banks to redress the liquidity crisis, inflation will inevitably result. Interest rates could easily top out over 8% inside two years. So if you are soon to renegotiate your mortgage, talking to a Mortgage ID professional is time well spent. We have access to every product in the market. We will thoroughly examine all the factors that are important to you and offer you a recommendation tailored to your circumstances.
Fixed rate deals are still attractive but we recommend moving now to obtain a 3 to 5 year fixed rate deal if you are someone who would find yourself in difficulties if rates rose sharply. It may cost a lttle more in the short term, when compared with a Standard Variable or a tracker, but the savings over the longer term could easily outweigh this. If you are due to remortgage anytime in the next six months you should act NOW to renegotiate your deal. We can lock in a historically low fixed rate deal and hold the deal for up to six months. If fixed rates drop further, we will automatically move you onto the better deal. If rates rise you can be comfortable in the knowledge that you will have negotiated the best deal.
Would you like to know more? Would you like to receive an obligation Free mortgage review? If your answer is yes to either of these questions, then click the button and a Mortgage ID remortgage specialist will be in contact with you within the hour.
 
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