If interest rates could talk.....

As Mortgage Advisers we’re frequently asked about interest rates and where we think they’re heading. This generally occurs as fixed interest terms expire, and our clients are faced with a decision around re-fixing for a new term.

It makes a lot of sense to re-fix at the lower interest rates on offer now – but to keep paying the same mortgage instalment. This means that we’re paying more towards reducing the mortgage balance.

If, however we have another goal such as saving for a car or holiday, we may just want to take advantage of the lower mortgage instalment to increase our savings for those other things.

Generally speaking, re-fixing for a shorter fixed interest term will enable us to take advantage of interest rates if they fall lower which they may well do in the current financial climate.

But is there another opportunity that we might miss in the hustle and bustle of trying to understand interest rates and how they affect our plans?

At Thompson McNeill we believe the expiry of a fixed interest term is a good opportunity to revisit our financial situation, and the goals that we can set in what is an historically low interest rate environment. After all, when interest rates start to rise again, we won’t have the advantages that we do now!

Want to know more? Give us a call on (03) 281 8605 or email:

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