Fixed Rate Remortgages - Should I Fix My Mortgage Or Wait?

With interest rates at an all time low many people coming to the end of their mortgage deal be it a fixed rate or a discounted rate are finding that their mortgage payments are amazingly low. Many mortgages taken out in the last five years offered customers a tracker rate at the end of their deal period instead of the lenders variable rate. This has given many people a difficult dilemma, do I remortgage now or wait and see what happens?

The fixed rate option
There are many fixed rate mortgages available on the market however many of the low rates require at least 25% equity in your home and a fixed term of two to 3 years. Many of these rates may only be around the same rate as you may currently be on and although they typically come with a free survey and free legal fees will have a large arrangement fee of between 999 and 1999 pounds. Currently the longer term fixed rates of five to ten years are around the rate of interest that many lenders have set their current standard variable rate, which is in many cases higher than the tracker rate for existing customers mentioned earlier.

The future of interest rates
Nobody has a crystal ball that can say what will happen to interest rates in the future, but what is certain is that what goes down must go up. With interest rates said by many to be as low as they can be it is fairly certain that interest rates will go up if not the end of this year early next year. What is important to remember is that fixed rates that are on offer reflect the markets expectations of interest rates in the future. As we have seen recently with oil prices if the markets see that there are signs of a recovery then prices start to rise, like wise fixed rate mortgages will start to rise when the green shoots of recovery start to be seen. This could mean that by sitting o the fence and not taking a fixed rate mortgage now could mean that by the time you do decide to take one the rates will be far higher

To fix or not to fix
It is clear that taking a long term fixed rate mortgage today will not save many people money straight away. However if interest rates return to their normal levels of the pre credit crunch levels or worst end up higher, then a long term fixed rate mortgage of five years will certainly will have been a worthwhile purchase.

Fixed rate mortgage advice
To find out more information on fixed rate remortgages there are many mortgage comparison websites that allow you to check the latest rates free of charge. This allows you to check interest rates each week to make sure they are not going up. Alternatively you can speak to an independent mortgage advisor you will be able to regularly update you on the ups and downs of the remortgage market.

About the Author:
Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK's most trusted information site about personal finance. So if you are looking to remortgage your property check out the best remortgage deals online. You can save money, you could also save money on your mortgage life insurance quotes.

Article Originally Published On: http://www.articlesnatch.com

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