Economists are confused about when, or even if, the Bank of England will raise interest rates in 21. So is now the time to opt for a cheap fixed rate mortgage?
But whether interest rates begin to rise in the coming months or not, now could be the best time to move away from a standard SVR rate.
The roller-coaster that is the current British and global economy really does make predicting which way interest rates will go extremely difficult for the remainder of 21, says Pierre Williams, Head of Research at moneyexpert.com.
While homeowners on SVRs will have benefitted over the last two years, interest rates can go up as quickly as they went down, putting considerable strain on already tight family finances. For that reason many homeowners may prefer the added security a fixed rate mortgage brings".
Lower Costs of Fixed Rate Mortgages
Fixed rate mortgages have come down in price in recent months and are now at their cheapest level in 7 years, with some attractive long term fixed rate deals on offer.
Research published recently shows that while no lender has cut its SVR for nearly a year, 16 have increased their SVR since Bank Rate fell to .5% 15 months ago.
As with any financial product we urge anyone thinking about taking out a fixed rate mortgage to compare prices between lenders to ensure they are getting the best rates and the best deal for their individual circumstances.
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE