Those seeking to get a home improvement loan are being advised to find one that offers a fixed rate. Right now, even though interest rates are high, there is still more security in a home improvement loan that as a fixed rate. Since rates are expected to continue to climb over the next few months, those that need a home improvement loan should try to lock in a low rate if possible to avoid having to pay too much for their loans. Until the rates come back down, those with flexible home improvement loans may want to consider switching.
“Fixes are popular because the future direction of interest rates is so uncertain,” says David Hollingworth of broker
He added, “Being a quick mover is key if you want as low a rate as possible. In recent days the situation on the money markets has deteriorated further and the rates on two- and three-year offers are bound to rise to reflect this. Already both Abbey and Bradford & Bingley have increased the rates on their fixed deals.”
Related reading: Home Improvement Loan
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