My mortgage is ending – should I get a variable rate and wait, or fix now? ...Middle East

Question: The base rate is expected to stay the same later this week, at 4.25 per cent. My mortgage is due to end soon. I wonder if I would be better off moving on to a higher SVR for the time being and hope it falls later this year, and mortgage rates will also lower. What is the best course of action?

The Bank of England is expected to hold the base rate at 4.25 per cent this week. Since last autumn, we’ve seen four reductions, and the general view is that one or two more could follow before the year is out. That said, the timing is far from clear, and any further cuts may take time to filter through to mortgage rates.

square BENEFITS

Why your savings could mean you miss out on winter fuel payments

But it’s important to keep in mind that SVRs are typically far higher than other available deals. Many are currently more than 6.5 per cent, which could mean a sharp jump in your monthly payments. They’re also unpredictable.

Fixed rates, meanwhile, are still widely available and in many cases offer better value than remaining on an SVR. Some are as low as 4 per cent for those with higher deposits or equity.

These have nudged up slightly in recent weeks, mainly due to ongoing inflation concerns and wider market uncertainty, which is keeping lenders cautious.

If flexibility is your priority, you might also consider a tracker mortgage. Trackers typically come with lower rates than SVRs and often do not have early repayment charges. That means you could benefit if rates start to fall but still have the freedom to switch to a better deal when the time is right.

Ultimately, the best course of action depends on your personal circumstances, including your budget, risk appetite and how much certainty you want around your monthly payments.

Speaking with a mortgage broker can really help. They’ll be able to compare what your current lender is offering with the rest of the market, break down what you could expect to pay under different scenarios, and help you avoid paying more than you need to while keeping your options open.

Read More Details
Finally We wish PressBee provided you with enough information of ( My mortgage is ending – should I get a variable rate and wait, or fix now? )

Also on site :

• Oil prices up after reports of 3 ships on fire in Gulf of Oman near the strait of Hormuz
• Ron Taylor Passes Away
• Padres Select Bryce Johnson