Little point to short-term fixed-rate mortgages claims John Charcol

People looking for the best mortgage rates will be interested to hear that one mortgage adviser believes there is not an "awful lot of point" in taking out short-term fixed-rate mortgages at current rates.

Ray Boulger, senior technical manager at John Charcol, said that the majority of people who opt for a fixed-rate mortgage lean towards longer term products to gain security over their repayments.

A recent unbiased.co.uk report showed that the rate the average homeowner would be prepared to fix their mortgage at is 3.3 per cent despite the current best buy deals for three-year fixed-rate loans standing at around 5.1 per cent.

Commenting on the figures, Mr Boulger said that a 3.3 per cent average rate sounds "unrealistic", but it depends upon the length of the deal.

He added that 3.3 per cent may be more realistic for people fixing their mortgage over five years rather than three.

The Bank of England's Monetary Policy Committee recently voted to keep the base rate at its historically low level of 0.5 per cent.
 

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2011-01-14 13:14:13 © Moneyextra.com