Fixed-rate mortgages 'more attractive to borrowers'

Fixed-rate borrowers are currently more attractive to borrowers than they have been in recent months, it has been claimed.

According to Ray Boulger, senior technical manager at John Charcol, this is because the cost of such deals has fallen, while some lenders have been increasing the prices of their tracker deals.

"Although I think trackers generally still offer better value, you can certainly make out a much better case for buying a fixed-rate now because the gap between trackers and fixed-rates has narrowed and fixed-rates are looking better value - particularly five-year fixed-rates or longer term fixed-rates generally," he said.

Figures from the Council of Mortgage Lenders recently highlighted that 48 per cent of new borrowers took out a fixed-rate mortgage in June - the highest proportion so far in 2010.

Fixed-rates had proved unpopular with borrowers in the past year due to the historic low Bank of England base rate.

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2010-08-12 16:27:29 © Moneyextra.com