Morgage Rates

[neg213]

My morgage has come to the end of it's fixed rate period, and was wondering whether to go for a further 2 year or 5 year fixed rate option. With the'credit crunch' are we likely to see the Bank of England reduce interest rates over the next few months, if so, i could go for a 2 year, rather than be stuck with a 5 year and find that i'm paying a higher interest rate than what the banks are offering.

[B-Finance]

If only we had a crystal ball!

The BoE voted 8-1 last time to keep rates static. They have inflation to contend with as well as the confidence of the population.

Even though BoE rates have been reducing, lenders have increased their margins significantly compared to a number of months back.

Your decision is going to be based on piece of mind moreso than anything. Alternatively a product that has a shortish tie in with a sensible variable rate thereafter could be an option.

Branton Finance