Fixed FeeI have been looking for a new mortgage lately as I know the rates have come down due to the drop in the Bank of England base rates. I have been agonising whether to go for a
Fixed Fee mortgage or a variable one and, as I don`t know very much about finance, it is a very difficult decision for me. My instincts were leading me towards a
Fixed Fee mortgage as it seemed to me this had the advantage of being the same amount to pay every month so I would never have a nasty surprise. However, I was talking to a friend the other day who takes a lot more interest in the financial markets than I do. He told me that in the current climate, he was not at all sure that a
Fixed Fee mortgage would be the best option for me to take. He explained that a fixed rate would always be a more expensive option because of the security they offered and that a tracker mortgage might be a better option for me at the moment because interest rates were so low. He told me that I was almost certain to pay less with this type of mortgage at the moment and, if and when the rate went up, I could look at changing again then. I was really grateful for his advice and went ahead as he suggested.
