I don’t mean to gloat or anything, but I’m rather pleased I locked-in my mortgage interest rate last year. It’s locked-in for 5 years (the maximum) which may or may not have been a good idea — only time will tell — but it certainly looks pretty good right now. Mine’s locked-in at 7.85%, whereas my bank’s standard variable rate is now 9.47%.
Meanwhile, interest on savings has also been creeping up, of course. The savings account I have now has 7% interest… which leaves me wondering if it’ll climb so high that it’s above my mortgage rate. If that happens, it’ll be better for me to keep money in the savings account than the mortgage offset account. Weird. (Though now I think about it, I get charged tax on interest earned.)
Some are predicting rates will start to drop again this year. So any advantage I have now may be shortlived.