Credit Crunch - Fixed Rate Deals

The mortgage market was starting to ease, with cheaper deals beginning to come along, but last week’s turmoil kiboshed that. Banks now charge huge interest to lend to each other and this could add 0.25% to the cost of new fixed rates. Why act now? Lenders usually sell fixed rate deals in tranches, say £100m worth, and only reprice once they’re sold out (though some are being withdrawn early), so for the next few days you may still be able to grab one. The Autumn is traditionally the time when lenders look to make a last”pitch” to hit annual lending targets so its often a time of competition in the market place and a chance to bag a better deal!

Or you could look to book ahead if your current deal isn’t due to finish for a several months : It’s sometimes possible to reserve a deal even up to 6 mths ahead, though 3 months is more usual. To do this you pay a non-refundable booking fee, e.g. £100 (separate to the arrangement fee). If things get worse, you’ve done well; if they get cheaper, get a new deal and you’ve only lost the fee.