Is now the time to lock in your mortgage to a long term fixed rate?


With much speculation regarding the timing of the next interest rate rise, you may be calculating about whether or not to fix your interest rate for the medium to long-term future.


However, for those that want to, the fixed rates*, which are currently available, may be very attractive – see underlying costs in the graph below.

Low fixed rate
Market rates

In early 2015, the underlying cost of funds (to which a margin is added) for fixed rate loans* dipped to near or (in some cases) below the previous trough in the graph, seen in the spring of 2013. After a period of higher rates throughout the remainder of last year we have more recently seen the funding costs fall again to near or below the level of spring 2013.


With margins (added to the cost of funds) also very reasonable, businesses currently have the opportunity to fix at a competitive rate.


Against this backdrop, AMC is one of the very few providers still prepared to offer fixed rate loans for longer than 10 years and a 30-year fixed rate loan is currently available at rates below 4%*.  So now could be an opportune time to review the structure of your long-term borrowing to secure the future of the business.


Should you wish to discuss any specific proposal, we would of course be more than happy to chat through the details of what can be offered, but, as always, anyone considering taking a fixed rate loan* should seek independent financial advice.


It is important to remember to secure a rate that is right for you and your business to ensure all lending is affordable both now and in the future, Andrew and Julie at Carver Knowles can both help with this assessment and to put together an AMC application to ensure the best available rate is secured.


*There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.


AMC loans available for business purposes only, provided on a secured loan basis. Minimum AMC standard loan £25,001, minimum flexible facility £30,000. To meet customer requirements, lending criteria will vary. Lending is subject to status.