Fixed-rate mortgages are an "attractive option"

Fixed-rate cheap mortgages are likely to remain an "attractive option" for homeowners, it has been claimed.

Andy Pratt, chief operating officer at Alexander Hall, said that the popularity of fixed-rate deals will probably increase in the short-term as people seek to take them out before a base rate rise occurs.

"The rates that are being offered by lenders to try and gain market share are an attractive option to fix at. Most people would think that when the [interest] rate goes up over a couple of years, it would probably go past that point so, in that sense, they see it as a good safe bet," he said.

Most people looking for cheap mortgages understand that a base rate rise is a matter of when not if.

His comments follow an announcement by Barclays that it is cutting its mortgage rates on some of its residential products in order to make them more affordable for customers. 

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2011-08-05 12:52:17 © Moneyextra.com