Consumers urged to take out fixed-rate mortgages

People looking for the best mortgage rates have been urged to opt for a fixed-rate mortgage as interest rates are likely to rise in the near future.

According to Nationwide, a fixed-rate product "provides certainty, stability and help with budgeting," an important benefit in the current economic climate.

Martyn Dyson, mortgage specialist at the lender, said that homeowners who think they are on the best mortgage rate available to them should shop around and compare other products in the marketplace as they may be able to save money elsewhere.

The Bank of England's Monetary Policy Committee meets today March 10th to discuss changes to the base rate, which has remained at 0.5 per cent for almost two years.

Mr Dyson added that there is a "risk" that the number of repossessions could increase as interest rates rise, but he advised struggling homeowners to contact their lender as soon as possible.
 

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2011-03-10 11:43:31 © Moneyextra.com