Monday, 25 April 2011
No time to fix a mortgage
Yet the prospect of sharply higher rates has been in the offing for most of this year. With RPI inflation at over 4% rates in a normal economy would be expected to be around 6 or 7 percent; that for many people would mean a doubling or even trebling of their mortgage.
Now though one benefit of the sheer difficulty of tyring to keep the economy going whilst the debt is paid down is a strong likelihood that interest rates will be kept low in May. If this is the case they will likely stay low until people come back from their summer holidays in September - or maybe even October.
For those of us who have been agonising over whether to fix rates at a much higher level than the variable rates this is welcome new, as it gives another 6 month breather before real rates of interest need to be paid again.