Mortgage Advice

[ajayjain]

Hi,

My fixed term mortgage will expire this month.
I am getting a new deal 5.99% variable for 1 year from Barclays

should I take it or should i go for a fixed rate for 2-3 years.
Do you think interest rate will go up or it will come down.

Thanks

 

[dp0848]

A very difficult question. On the one hand lower interest rates will stimulate economic activity and help to stave off recession. On the other hand there is the need to control inflation. On balance, taking a long term view, I believe that the control of inflationary pressures within the economy will be viewed as the most important factor by the Bank of England and so I think interest rates will rise from where they are currently. I'd go for the fix.

 

[TMSL]

Ajay, it is v tough to say where interest rates are going. What sort of fees come with the fixed rate. I think a 1 year tracker is a good way to go if its on offer, with the election coming up you may find Mr Brown will want to win some votes by pushing down rates. If you want any more advice drop me a mail on [email protected], as you can see thats my field. Ryan