quite unbelievable we are only 4 months away from owning our current house for
two years! (better get some cake in, any excuse hey!)
noted by my friendly mortgage broker calling me to ensure I opt for a new deal,
rather than being rolled over onto a more expensive interest rate (costing a
staggeringly £200 more per month and as we know money doesn’t grow on trees!).
being said its quite obvious why you should always remember your mortgage deal
end date, the reason why I went for a two year fixed deal was because I was unclear
what the interest rates were likely to be doing, there was a general mixed
feeling surrounding a rate increase.
So now I am
to ponder again, if I stick to another two year deal I can save nearly £90 per
month, however if I went for a five year deal it would see me paying just £5
less, of course less is always definitely more, but at what point of interest
rate increase would the lower term become unstuck?
rates rose more than 0.75% within the initial two years that would be the
tipping point (I think – but I am by no means financial in these terms!) It’s
all down to acceptable risk, in my case I believe if it was decided to raise
the interest rates then, it would be done very slowly over time, as the UK
government wouldn’t want to risk financial crisis again!
So for me I
will endeavour to take the two year risk again in the hope that interest rates
remain fairly static and enabling me to again gamble with the rates when I
would estimate we could be facing some higher increases and it would be time
for me to fix in for the longer haul!
the interest rate deals to fix in are bounding back up, I have to wait until I
am within 90 days of the deal end before I can effectively swap – my hopes are
they don’t bounce up to much until I fix in the New Year!