Stocks Power Ahead Again
Stock Market Powers Ahead
Despite all the economic problems that are still swirling around the Western economies the stock market powered back up today after dropping back slightly recently. Many people are also thinking about refinancing their home loans.
ING Direct have created a remortgage with an interest rate of 3.69% fixed for the next five years. The cheapest remortgage deal around. A lot higher than SVR and tracker loan interest rates nevertheless.
A remortgage is something most home owners may decide to do at some point and with rates very low right now it may seem like a good idea. Rates may start moving up soon so this could be the right time to lock in a good fixed rate.
The C&G and Nationwide have SVRs of 2.5% well below ING’s remortgage rate. But if rates start moving up again this could change. If a higher rate will cause you problems a fixed rate would be a good idea.
Whether a fixed rate remortgage or a SVR variable rate is good for you depends on when rates start going up. If your current rate is low then you will want to stay with it as long as possible. Charcol brokers say a good idea is to read the last few paragraphs of the minutes of meetings of the BoE’s monetary policy committee, as these generally contain indications about future rates. They also tell clients when fixing rates would be a good idea, and they haven’t done that yet.
For good free advice mortgages check out Which magazine as they give free advice to anyone with a subscription or their families – further details here – remortgage deals
