Taking a Gamble on Your Mortgage
By Ted G

While the economy suffers at the hand of credit crunches and Wall Street crises, it's important to remember that it is possible to take advantage of the one thing that has taken a positive drop in recent months - the base rate set by the Bank of England.
Although the word 'drop' may not be a welcome one for homeowners when referring to house prices, a cut in the base rate can mean good news for those with the right type of mortgage.
The Council of Mortgage Lenders (CML) has drawn attention to the fact that a growing number of homeowners are opting for a tracker-rate mortgage.
Unlike a fixed or variable-rate mortgage, this tracks the movements of the bank base rate set monthly by the Bank of England 's monetary policy committee (MPC).
The current climate, with an increasing number of predictions that the base rate of interest will fall in April, seems to lend itself well to this mortgage option.
Today's publication of the minutes of the last meeting of the MPC revealed that of the nine members, two supported a reduction in the rate rather than the freeze which was announced in March.
And it appears ever more likely that come April, these two members will get their way.
Charles Davis, economist at the Centre for Economics and Business Research, said: With the worsening financial market conditions and evidence that average earnings growth remains moderate, the likelihood of an 25 basis point April rate cut has increased significantly, reported mortgage comparison site Mform.
Those on a tracker mortgage are clearly set to benefit financially if the forecast cuts go ahead next month.
But it is also clear from the events of recent months that there are no certainties in the world of economics.
And bearing this is mind, it would perhaps be wise to heed the advice of Sue Anderson, spokesperson for CML, who advises homeowners to take a proactive attitude and assess whether a mortgage product is right for them.
She said: shopping around is always important, particularly so when the range of choice is narrowing.
On the subject of tracker mortgages , Ms Anderson acknowledged that taking out this type of home loan can be a gamble, warning: People need to recognise their own attitude to risk and the extent to which they want absolute certainty about their level of outgoings.
It is clear that a fixed-rate mortgage would offer this level of certainty, but this could come results in the sacrifice of potential cost savings.
With financial uncertainty remaining the buzz words of 2008, it will be up to homeowners whether they want to take a gamble.
In today's world Property investment is an excellent investment option especially investment in UK
Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property
Eng. Ted
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