Is it time to fix your mortgage?
Analysis of rates over the last 20 years has shown a variable rate achieves a lower overall cost but in more recent times a fixed rate may prove better. Since COVID came along in early 2020 we have seen fixed rates drop to their lowest levels in...
Analysis of rates over the last 20 years has shown a variable rate achieves a lower overall cost but in more recent times a fixed rate may prove better. Since COVID came along in early 2020 we have seen fixed rates drop to their lowest levels in history, many below 2%. The government had assisted lenders provide these low rates by providing them a virtually interest free loan. In the past few months most of these rates have increased and now sit in the 3% range. This is still lower than most variable rates and now record numbers of borrowers are fixing. However, there are downsides to fixing, break costs involved to exit the fixed period early and also the limited ability to pay extra off your loan. If in doubt consult your mortgage broker or financial adviser to find the right solution for you.
