Property News > Fixed Rates? The Answer?

Fixed Rates? The Answer?

In a market where interest rates are consistently rising (there have been five rate increases from the Bank of England in the past twelve months) opting for a fixed rate mortgage is an attractive proposition in the battle to control household outgoings.At present, many lenders are offering fixed rates but they are almost all on a short term basis. Whereas a few years back you could choose to fix your mortgage interest over a period of three, four, five, or even seven years, now the emphasis is very much on the shorter term. The Council of Mortgage Lenders reports that almost 90% of first time buyers opted for a short term fixed rate mortgage and that the average first time buyer now borrows a record 3.37 times their income.The problem with fixed rates can be that when they come to an end people face a big hike in their mortgage payments because interest rates have risen in the intervening period. Some financial commentators are expecting this to amount to a crisis for cash-strapped families and expect to see a subsequent rise in the number of repossessions taking place. Of course, for the lucky ones whose salary has kept ahead of inflation then there is no problem but for those whose income has not risen, or perhaps has dropped because they have started a family and one partner's earnings capacity is reduced, the end of the fixed rate period can have dire consequences.Repossession is one of the most traumatic things that can happen to a family, but it can be avoided if you seek help when problems arise. Even if you are at a late stage in repossession proceedings, Property Rescue will make a guarantee to buy your home, thus avoiding the need to surrender it back to the mortgage lender.All Property Rescue's contact is without pressure or obligation and will be done in a very discreet manner. Contact them to discuss your situation and see how they can help.In a market where interest rates are consistently rising (there have been five rate increases from the Bank of England in the past twelve months) opting for a fixed rate mortgage is an attractive proposition in the battle to control household outgoings.At present, many lenders are offering fixed rates but they are almost all on a short term basis. Whereas a few years back you could choose to fix your mortgage interest over a period of three, four, five, or even seven years, now the emphasis is very much on the shorter term. The Council of Mortgage Lenders reports that almost 90% of first time buyers opted for a short term fixed rate mortgage and that the average first time buyer now borrows a record 3.37 times their income.The problem with fixed rates can be that when they come to an end people face a big hike in their mortgage payments because interest rates have risen in the intervening period. Some financial commentators are expecting this to amount to a crisis for cash-strapped families and expect to see a subsequent rise in the number of repossessions taking place. Of course, for the lucky ones whose salary has kept ahead of inflation then there is no problem but for those whose income has not risen, or perhaps has dropped because they have started a family and one partner's earnings capacity is reduced, the end of the fixed rate period can have dire consequences.Repossession is one of the most traumatic things that can happen to a family, but it can be avoided if you seek help when problems arise. Even if you are at a late stage in repossession proceedings, Property Rescue will make a guarantee to buy your home, thus avoiding the need to surrender it back to the mortgage lender.All Property Rescue's contact is without pressure or obligation and will be done in a very discreet manner. Contact them to discuss your situation and see how they can help.

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