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Don’t buy a mortgage today, that’s the message I am giving my clients.
I like most people was surprised by the 1.5% reduction of rates by the Bank of England. But the mortgage market is a little unstable and volatile at present and will be till at least the middle of next week.
All of the banks and building societies have withdrawn their tracker mortgages, which means that if you buy a fixed rate mortgage today and the bank rate goes down another .5% or even 1% then you will have a more expensive mortgage than you should.
On the pessimistic side, if you get a fixed mortgage at 5.5% and the economy goes tits up and we see interest rates up to 5,6, 7,8% or more, you will have been glad to obtain a “cheap” mortgage.
Hopefully next week the lenders will come to their collective senses and bring back trackers or lower fixed mortgages.
So until next wednesday or so, do not get talked into buying a mortgage until things settle and better deals come back to the market.
Have a great weekend.
Michael
Michael Usher Mortgage Services