Fixed interests or variable interest rates?

There is a lot of media hype on locking in interest rates at the moment as the banks are rapidly increasing fixed interest rates which is creating some panic in the air.

What should you do?  As always, work out a solution that best fits you.  Here are some though starters?

- It would seem that variable rates are likely to go up

- you pay a premium for fixed interest rates, so if you lock in you are effectively going to lose in the short term and then gain in the longer term

- Fixed interest rates mortgages are less flexible than variable

- Fixed interest rates guarantee your future situation, so assist with future planning

- Don’t forget that you can split a loan between fixed and variable to hedge your bets.

- If you are going to sell in the near future then there is no point in locking in fixed interest rates

- Be aware that once it has hit the mainstream then the best opportunity has probably passed.  This does not mean you shouldn’t do anything; just don’t be a sheep without thinking about it first!

Hope this short post helps you to decide if you should lock in fixed interest rates?

Fixed Interest Rates

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