Sunday, July 18, 2010
To fix or not to fix, that is the question
By Andy Golding, Chief Executive of Saffron Building Society The question that every borrower wants to know the answer to is whether to tie themselves into a fixed rate mortgage deal, and at least get certainty, or whether to take a gamble on a variable rate and hope it pays off. The answer is all a matter of what happens to interest rates. In the strangest set of economic circumstances for at least 60 years, there are many opinions but very few facts to go on. Should you fix your mortgage rate now? Economists use the phrase â€œbalance of probabilityâ€ quite a bit, so what is the balance of probability for the direction of UK base rates?