Lime Property Solutions will not give advice on this matter. This is a discussion you should have with your Broker or lender. However, for anyone who is concerned about fluctuating interest rates or rising interest rates in particular, it is by far one of the best ways of securing cash flow in the future. Even fixed rates of up to 10 years are currently less than variable rates of a few years ago.
On a personal note, I have fixed rates recently for the first time in my life. I’ve been examining the fact that some 2 year or even 3 year fixed rates are already over 2 interest rate cuts lower, (that is 0.25% + 0.25%), than the current variable rate. The question to me then becomes, “Even if interest rates should collapse over the next 2 years, would I be comfortable and happy paying 4.18% on these fixed loans?” My answer was ‘yes’.
