Fixed rate or vari rate

Dazron_2

I'm looking into getting a loan but not sure which will be best due to credit crunch.
Fixed rate or vari rate.
I will be very gratefull of any advice.
Thanks Dazron

_Andy_

Hi Dazron

This is a personal choice and I don't know what your individual attitude to risk is.

Is this a personal (unsecured) loan or a secured one you're going for?
You'll find the majority of unsecured loans are fixed rates.

Dazron_2

_Andy_ wrote: »

Hi Dazron

This is a personal choice and I don't know what your individual attitude to risk is.

Is this a personal (unsecured) loan or a secured one you're going for?
You'll find the majority of unsecured loans are fixed rates.

Hi , its a secured loan but i have a quote for both options.
Dazron

~Beanie~

It depends really, how long is the loan for and what rate have they offered you for a fixed rate?

If it is quite high and you feel confident that rates will come down, you are probably better going for the variable. On the otherhand if it is a reasonable rate and you feel rates will increase, go for the fix.

Personally, if I was happy with the rate they quoted me, I would go for the fixed. Just so that I could be certain of my outgoings each month and I could be happy knowing that I wouldn't get any shock increases!!

duff67

Agree with Beanie

If fixed rate is affordable and acceptable, then FIX.

It secures your monthly outgoing in this respect and takes one more financial variable away from being concerning in the future.

As secured loan, likely secured against property it could be looked at as a mini mtge and fixing those at a good rate is key.

Pressume as its secured, you have obtained a better fixed rate than the unsecured available ??