5-yr fixed-rates 'have many benefits'

With economic uncertainty remaining in 2010 Leeds Building Society has declared that five-year fixed-rate mortgages may offer consumers many benefits.

The inevitable austerity measures will lead many homeowners to review their personal finances and attempt to reduce outgoings.

Leeds Building Society believes that interest rates cannot stay at the current historic low and that the monetary policy committee will inevitably vote to increase the base rate in the near future.

Kim Rebecchi, sales and marketing director at Leeds Building Society, said: "In the current climate, locking into a fixed-rate deal for a five-year period has many benefits including certainty, peace of mind and the ability to limit monthly outgoings on what is usually the biggest household expense."

She added that the company recognises that customers prefer the certainty of the fixed-rate mortgage and have therefore launched a market leading five-year fixed-rate mortgage from on 3.94 per cent.

Last week Paula John, editor at Your Mortgage, said that for cautious buyers, especially those seeking to establish a foothold on the housing ladder, a fixed-rate may prove to be "an option worth considering".
 

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2010-09-03 12:01:44 © Moneyextra.com