Fixed-ratedeals 'good for those searching for cheap mortgages'

Fixed-rate deals may be ideal for those who want cheap mortgages as these are currently very promising, an expert has claimed.
 
Ben Wilkie, editor at What mortgage, has highlighted the fact that fixed-rate deals are based on how cheaply the banks are able to borrow money and stated that the London interbank offered rate Libor is currently low.
 
He stated that the financial services sectors' confidence that rates will remain low for a reasonable amount of time are another factor pushing the cost of cheap mortgages down.
 
Mr Wilkie said: "You are seeing very cheap two-year fixed-rates because banks assume that even if interest rates do rise, they are not going to rise by that much over the next two years."
 
Earlier this month, Kensington announced that people's credit scores are often the biggest barrier to them obtaining cheap mortgages.

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2011-10-06 13:11:03 © Moneyextra.com