Quick Mortgage Q&A: Fixed Interest Rates

In our new video series Quick Mortgage Q&A's, we answer some of the most commonly asked questions that we get asked as mortgage brokers. Today we are discussing fixed interest rates, and what circumstances we take into account when we recommend either fixed or floating interest rates.

My fixed rate is close to expiring. What do I do now?

Come and see us just before your fixed rate rolls off - maybe a couple of months beforehand, because that is the time that we can start to look at it. What we want to look at is your personal situation, and to work out what structure is right for you. So it might be fixing it in for one of these low rates, or it might be looking at floating options as well.

It all depends on your personal circumstances, what income you have, and which is going to suit you best - be it a floating rate or a fixed rate.

What are the factors or circumstances that might impact my position?

If we are looking at a floating rate mortgage, then we would consider any extra funds and do you want to use these to pay off lump sums off your mortgage. A floating rate gives you a bit more flexibility than a fixed rate. So therefore if you have a salary where you also get commissions or bonuses coming through, then a floating rate would be an option. 

Within those floating rates we have a couple of options as well. If you have lots of credit sitting in your account, you might want to use that to help offset your mortgage and save you interest.

Everyone's circumstances are different, so if you have any questions around interest rates or mortgages in general, feel free to get in touch with the Loan Market team. You can find the best way to contact us here