Wednesday 28 September 2011

Floating Or Fix Mortgage

Should I fix my mortgage or remain on floating?

  • there is no rule of thumb where one size can fit all
  • we might like our coffee or tea with sugar & milk but our health may dictate otherwise
  • we have to make a choice accordingly if we need to remain healthy – our loan needs to be serviced regardless
  • repayments need to be made no matter what your situation
  • different borrowers have different situations – in some cases they are extremely different 
  • no 2 cases are similar in terms of budgets & commitments
  • those on a very tight budget now on the current variable rate with no change in circumstances possible soon should look at fixing or combine fix & float a small amount of the loan.
  • it is possible household is down to one income as against two incomes earlier – look at fixing
  • if you are expecting some money from work or business or wherever,depending on when – fix accordingly
  • those with a healthy budget – meaning a healthy surplus – should remain on floating
  • there are those who have a good surplus but need certainty of repayments for a period - fix short to medium – 6 mths-18 mths
  • there are those who need certainty of repayments for longer periods – fix medium to long – 18 mths – 60 mths
  • those in business with regular cash flow – different options
  • this is again general advice without looking at situations from close and getting details
  i can tailor your loan for you depending on your situation