To fix or not to fix in 2011?

Using your 'downtime' to review a few fundamentals for the New Year?  No doubt you're giving thought to the 'fix or not to fix' question. 

With the talk of interest rates undoubtedly on the rise, here are a few points to put in the mixer:

* Possibility of rates on the rise of up to 1% over the next 12 months - we think that a rate rise is likely, but there have been some interesting signs just over the last month that may impact on this.

* The housing market has slowed somewhat very recently and there's a perception that it may very well have hit a peak - for the short term anyway.
 
* Business confidence is still a little subdued although depending on what business you are in and where your clients are this effect will be varied.

So - what do we think?  Yes, there will definitely be some rate rises but by how much remains to be seen.  Remember also, that if fixed rates sit at traditionally around 1 % higher than a variable rate, there still quite a catch up that's must occur before you start to see some 'savings' - that's a decent amount of time to try and put the equivalent into a variable mortgage.

But, if managing cash flow in either your business or at home is a priority then it's always a good option to help with this.

Every individual and every circumstance is different - we don't have a glass ball, just good analysis and dialogue with you to figure out what's the best option for you.

Enjoy your week of downtime.