With interest rates at historically low levels it may be a good time to think about a fixed rate mortgage.
The most popular term for a fixed rate mortgage has been two years. But there is a case for seeking a longer term fixed rate mortgage, and not just to avoid recurrent arrangement fees. Low interest rates, below 5% are available in some instances, although it may be that substantial deposits are required.
It seems unlikely that mortgage interest rates will fall much further. It must be remembered that in the present economic climate investors are suffering, and there may be a limit to what they are prepared to endure, as low returns clobber their livelihoods.
There is an old adage that, 'if you don't ask, you don't get'. So, those whose fixed mortgage deals are coming to an end , could do well to talk to their loan providers, about a fixed rate for a longer term. They could discuss the advantage of as favorable a mortgage rate as is available, coupled with a saving on the recurrent fees.
The other side of the coin is that as house prices are still falling, it doesn't seem like a good time for first time buyers to get involved. However, it appears that for those with existing mortgages there could be fixed rate mortgage deals worth shopping around for.
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