It is widely expected that rates will be cut to stop the countries house prices falling this year, many analysts predict further cuts throughout the year which would be a well received by homeowners who have or will be coming off low fixed rate mortgages.
Many homeowners had a nasty surprise this year when they came of low fixed rate mortgages, many well below 5%, to find that they were likely to pay more than 1% more for the same product due to interest rate increases over the last 2 years.
Unfortunately many of these homeowners, scared of interest rates continuing to increase, fixed them selves into another fixed rate mortgage above 6%.
In September the lowest interest rate you were likely to pay for a fixed rate mortgage was 6% without paying high fees. You can now expect to pay around 5.8% with lower arrangement fees and a likely hood of the fees continuing to fall over the next few months.
Homeowners who signed up for Track Rate Mortgages over the last few months have gained the most and a likely to do well this year.
The concern in the market however is how many times can interest rates be cut before inflation gets out of hand? I predict we will find out towards the back end of 2008.
***Come back tomorrow where I will be discussing the difference between the various types of mortgages on the market and how each one may effect you***
Daniel Morgan
Independent Mortgage Broker
No comments:
Post a Comment