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NewsFixed-rate mortgages 'may still be best'
Fixed-rate mortgages 'may still be best'
Posted by Francesca Witney
Fixed-rate mortgages may still represent the best option for Britons looking to get on the property ladder, despite historically low interest rates.
That is the view of Ben Wilkie, editor at What Mortgage, who believes that even though the Bank of England (BoE) has held the base rate at 0.5 per cent for the last 29 months in succession, home loans tracking this figure are still "not quite as good as people may think".
Mr Wilkie explained many banks and building societies have responded to the widespread belief that the BoE will not vote to boost interest rates for the foreseeable future by pricing their fixed-rate products more competitively.
Therefore, with this in mind, the expert noted that anyone maintaining a "very set budget" is best off with a fixed package as they provide the security of "knowing what your payments are for the duration of the deal".
Recently, the BoE revealed the number of mortgage approvals in the UK rose above the previous six-month average in July. 
06/09/2011 15:37
News category: Property