Because the mortgage rates will be going up and in 1-2 years you probably won't get anything to compete with what you can get at the moment?
Given my luck....the stress of it. I've had many properties in the past, rented out. Sold them up ready to move to Oz some 12 years ago. Never happened, now I just want an easier life and security. Not risk and even more gains (tax). I've lost my umph. I lend smallish lumps to local business and friends at 5%, manage my own risks and so far, so good.
Current inflation figures, recently published, are: ConsumerPI 1.6% RetailPI 2.5% ProducerPI 2.7% Given that the target is 2%, that is pretty close. It's also a lot better than deflation. Even so inflation figures are rising and forecast to rise over the next year, probably to a level where base rate will have to go up. Admittedly previous predictions of base rate rises turned out not be fulfilled, but the reasons are getting stronger now. Putting your money on likely rises in mortgage rates (i.e. by taking out a fixed rate now) looks like a sensible bet to me.
Not sure you'd meet either of my lending criteria (smallish lumps to local business and friends). I've checked out the site and I see you have issues with the local police.
Not sure about some of the development ideas you've sent me either! As you may be aware stricter immigration policy can only hamper your harem plans.
I notice that CPI is 2.9% and RPI has reached 3.7%. Forecasts are for further rises in coming months. So the interesting question is whether the BoE MPC will put up base rate soon (at last) - or still not yet. Any opinions?
With the situation that we have with May's strong and stable government and consumer spending showing signs of tightening, I would bet the BofE will be leaving well alone for now.
I've just gone through this, and gone for a fixed rate for 5 years. I've stayed with my current building society. The rate is not the best on the market, but it is in the best 5 rates that I could find. But, I had no fees and £750 cash back. This meant the deal over 5 years was much better than any rate I could have moved to, as most want £1k set up fee and no cash back. Rates may not drop any further, so I should not be worse off. Rates will either stay the same or increase over the next 5 years. My fixed deal will give me stability over the period. I plan to make over payments, which I'm allowed to, and try to clear as much of the mortgage as I can while I have the fixed period.
