Q&A: Mortgages
With the prospect of rising intrest rates, whay type of mortgage is going to prove the most economical?
Alasdair Mackenzie from Cluttons says:
The best two year tracker rate is currently about 0.3% less than the keenest priced two year fixed rate.
For anyone requiring certainty of their monthly payments, they should be taking a fixed rate for the length of time they want that certainty. Second guessing interest rate changes can be a dangerous game and therefore in the current climate only those that could readily afford any increase should be looking at tracker rates. You can still fix rates over five years at under 5% which many would believe to be a sound long term option.
Comments
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Posted by: Peter Robinson | February 2, 2007 12:07 AM
I think that in the next 2 years interest rates on home mortgages will soften a little. But there is always risk that they won't...so you may want a fixed rate and not a variable rate on your home mortgage.
Jord
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