Just food for thought.
Is now a good time to lock in to a low fixed rate mortgage?
News out recently that the American economy may have bottomed. Obviously nobody knows for definite what is going to happen to rates here but Fixed rates have actually increased recently with some of the Banks so could it be a good time to lock in to a low rate now?
The lowest fixed rate I have seen at the moment is 2.99% for a year ( this does have a tie in to the variable rate afterwards for a further 5 years ) and probably one of the best deals I have seen is a 3 year fixed rate for 5.39%.
It may even make sense for some that have locked in to a higher fixed rate to consider breaking the deal ( find out the break costs involved! these can be high! ) and locking in to a lower longer fixed rate. Of course you will have to do the maths and decide where you think rates are heading.
Lastly be aware that with fixed rates it is not all about the rate. There could be a situation whereby one lender has a lower 2 year fixed percentage rate than another but due to other costs involved for example application fee, monthly mortgage account fee the higher rate may work out cheaper over that particular fixed rate term.
So as I say just food for thought but certainly worth considering.
(The above comments are just general information only and not to be regarded as advice)