To Fix or Not to Fix?

Many clients ask me at the moment whether to fix their mortgage or go for a base rate tracker. As always my advice is client specific, but their are a few issues to consider when deciding whether to fix or not. With the base rate so low, it is very tempting to so for a low tracker rate. However, if the base rate was to increase to say 4%, these same tracker rates look almost disastrous, especially if you are on a tracker 3% or above over base.

As for fixed, I have always had a golden rule. If you can fix under 5%, fixed it for as long as you can! I had many clients go for a 10 year fixed at 4.99% some months ago. I think this could prove to be great value.

My concern with 2 or 3 year deals for both tracker and fixed rates is that the arrangement fees are getting ridiculous!

Exercise your Credit

In this post credit crunch age, where lenders are seemingly looking for any excuse to refuse you a mortgage, it is worth spending a bit of time making sure that your credit file looks lean and mean.
I frequently have applications refused because people have paid their credit card bills a day or two late, thinking that it wont be a problem. YES IT WILL.
If you haven't done so already get a copy of your credit file from experian and/or equifax and view it as though YOU were a lender. This tends to sharpened your mind and ensure you pay bills early if necessary to keep your credit in tip top shape.