Fireman Dave

DavidIves_2

Does anybody know what the mortgage interest rates are likely to be doing over the next three years? I will be changing my mortgage in November and have been offered a 6.18% with my current lender fixed for two years and I have also been offered a 5.99% with the bank of Ireland fixed for three with no fees. Any advice out there for this situation?

dunstonh

The credit crunch is putting pressure on to lower them but long term inflationary and monetary issues are putting pressure on to increase them. Its a very tough one to call.

I would go with a 5 year fixed rate if I was you. Charges on fixed rates have been creeping up as its getting more expensive for lenders to secure the borrowing themselves which in turn they can offer to you. With a two year fix you could find yourself coming out of the fixed rate having to pay £1000 to go into a new one. That could wipe out any gain on the rate unless you have a large mortgage. With a 5 year fix you reduce your charges and know exactly what you are paying for a longer period. It's safer.

MortgagesInc

The Bank of Ireland rate has increased I believe to 6.19% now

Dan_Collins_2

Well spoke to a city guyu today and he says no change till next year then .25 drop! Not so sure my self!