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Staff Reporter
The fixed rate cycle could be set to turn, a senior executive from a mortgage brokerage has claimed.
Smartline’s executive director Joe Sirianni said there is growing evidence to suggest the industry is either at or nearing the bottom of the fixed rate cycle.
As a result, Mr Sirianni said a rate lock could be a prudent move for borrowers at the moment.
"Financial markets are starting to increasingly factor in rising rates and there are growing suggestions from some lenders that they will start to raise fixed rates, while some have already made the move in recent weeks," Mr Sirianni said.
"However, those people looking to capitalise on these still historically low rates need to be aware that the rate they decide on now may not be the rate they end up getting when the loan is settled.
"The interest rate is fixed at the time of settlement, not at the time of application. It’s largely misunderstood by banking consumers and is one of the main areas of complaint to lenders and the Financial Ombudsman."
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