Just How Useful Is A Variable Mortgage?
With interest rates bobbing up and down like a yoyo around the world as a result of the unstable and most definitely uncertain economic climate, it is hard to know just what to do and where to go when it comes to taking out a mortgage. There are so many mortgage deals that it is difficult to know which one to choose at any given time.
Mortgage rates went up repeatedly in 2007 but have come down twice since the start of 2008, so why would anyone in their right mind take out a variable mortgage? A variable mortgage will give you flexibility in that if the interest rates go up so do your mortgage payments but if they come down, as is the trend at the moment, you benefit by saving money. In an uncertain climate as exists at the moment, a variable mortgage may just provide what you need because a fixed mortgage could mean that you are paying too much. However, the bottom line is whether you are willing to take the risk.