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Originally Posted by andygrif
By entering into a mortgage that is fixed for the whole 25 years - you always know how much your payments will be, and you can ensure that you can afford them.
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The problem is Andy, that fixed rate mortgages are more expensive per month, & you are paying heavily for that security. I am moving currently, & have opted for a discounted mortgage over a fixed one, because for the monthly payment to match what it is on a fixed rate, my mortgate would have to go up several percent in a fairly short period of time, & I just can't see that happening.
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Sadly, with most lenders knowing that rates will rise, they are unwilling to enter into such an agreement.
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Not at all, all lenders are offering fixed rate, just at a premium. If I want a fixed rate mortgage, it will cost me approx £80.00 more per month than the equivalent discounted mortgage, which basically means an extra £960.00 per year, & thats a hell of a lot of interest rises in one year (that's why I don't think fixed rate mortgages are of any value)
I hope that makes sense.....
