Variable Vs Fixed Mortgage scheme
Ok i know its not a great time to purchase and i know this thread aint about trashing the company but would appreciate you smart people's thoughts.
Given that a person has about 5 years left here (i dont mean having to retire at 55), would locking in at the current fixed repayment scheme be a wiser thing than the variable.
I understand that if you are buying for first time a small apartment, variable is the way to go so you can afford to up-grade later, as in 7-10 years time the repayments may be double as they are now.
However, in the short term, buying a good size flat, am i right to believe the current fixed repayment scheme is the way to go???
I also think rates will go up in the short term but as things are crazy here, usually that means rents come down. eg as rates have gone down in last 2 years, rents have gone up!!! So if rent goes down, our allowance will also go down with it, hence why i think locking in is the way to go.
Any thoughts???