Fixed rate flurry
Non-bank lenders have reported an increase in enquiries about switching to fixed rates from home loan customers concerned about the fall-out from the US debt crisis. The managing director of Sapphire Mortgage Services, Peter Brady, said about 80 per cent of enquiries this week were about fixed rates. Mr Brady said that Sapphire does not source money from offshore so saw no need to raise rates yet but if other did they would follow. The head of credit at AIMS Jim Militiadis said that they too had received many enquiries about fixed rates and what their exposure to overseas is. Consumers should remember that there can be fees for switching and penalties may be incurred for making extra repayments on a fixed loan.