Two-year mortgage deals Dangerous according to press.

I just finished an article stating that 2-year fixed rate mortgage deals are DANGEROUS because of POSSIBLE stagnant house prices and POSSIBLE high interest rates.

Read here if you are interested.

The head of the Bank of England said that there might be an increase in the interest rate if he does not see a change in the inflation rate.


House prices could become stagnant but there is nothing new in that. House prices are dependent on demand and currently in Lanarkshire we have a robust demand for houses.

What is being ignored in the article is the fact that the above statements have always been true and what was not mention is the fact that most banks offer a product transfer (the ability to fix your mortgage again with the same lender) regardless of the loan to value.

Also, some clients risk profile is higher than others and will borrower as much as they can to buy as big as they can and will only take a 2-year fixed rate because the payments are very low. Perhaps these people are the most risk but a lot of people are buying sensibly and for the author to imply doom and gloom for all is an exaggeration at best.

If your mortgage deal is coming to an end and you are concerned or worried, please discuss your option with your mortgage broker because right now there is a RATE WAR going on with the lenders and it has never been better to obtain a very good fixed rate deal.


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