5-Year Fixed Rate Mortgages
Arguably this is the time to give serious consideration to taking out a 5 year fixed rate mortgage. The deepening economic gloom may start to impact upon the banks willingness to lend each other money. The resulting shortage of funds may result in mortgage prices going up notwithstanding interest rates remaining low. Sub four percent 5-year mortgages started to appear at the end of last year. Since then the Governor of the Bank of England, Mervyn King has indicated that the UK will follow theUSA’s stance and keep interest rates low for the next two years. But nonetheless there is the possibility that mortgage pricing may increase.
Posted September 19, 2011