A majority of mortgagees are on fixed rate deals these days. Most mortgagors offer the chance to switch to a new rate 3 months or so before your current rate ends. What’s the best advice? Well, wait and see for as long as you can seems to be the answer in current markets. Fixed rates are set, not on the basis of things as they are, but how they’re expected to be in 2, 5 or even 10 years if you’re going for the very long-term. After years of scientific research, we don’t have much of a clue how the weather will actually be next week, and much of this is a guessing game, too. The lenders must ‘secure’ the money they’re lending you against securities which effectively bet on future interest rates. The bets are that those rates are more likely to go down and so the deals are better this week than last, and perhaps much better now than they were a month or so. But who knew? Damned if you do, and all that.
OK, hands up, I’ve consistently said house prices can’t go up, certainly at this rate, forever. And I’ve been consistently wrong. So far. I’ve spoken to two clients this week, one buying, one selling, who’ve had to pay or been paid over the asking price.