Long-term fixed mortgages 'a sensible option'

Signing up to a long-term mortgage deal should not be seen as a risky move in the present market, one industry expert has claimed.

Ray Boulger, senior technical manager at John Charcol, said fixing into a five-year mortgage can create additional certainty for consumers.

"My view at the moment is trackers represent the best value because I think interest rates will stay low for some time, but if you want a fixed-rate then it makes sense to go for five-years," he stated.

Mr Boulger said the problem with two-year fixes is that if interest rates stay low, tracker deals will represent cheaper mortgages over this period.

"If interest rates go up, then in two years' time when you come off your fixed, rates are going to be higher and you are going to have to pay more to get another," he added.

The basic choice at the moment is between a tracker and a longer-term fixed-rate product, Mr Boulger claimed.

Last week, Paragon Mortgages reported that two-year fixes continue to be the most popular deals on the market.

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2010-05-25 13:30:48 © Moneyextra.com