Borrowers advised to choose a fixed rate mortgage deal
Borrowers who are coming to an end on their short-term mortgage deal this year have been advised to select the fixed rate option.
A recent survey carried out showed that fixed rate mortgage deals was going to increase throughout the next few months. The rise in the cost of bank’s funds has already caused majority of lenders to raise their fixed rates in response to the increase in underlying costs and more are likely to follow.
A new predicament made stated that if inflation drops back into line then interest rates could continue to increase by the last quarter of 2008. Brokers are advising borrowers to reserve their new mortgage rates now, this could even mean paying thousands of pounds upfront.
Managing director of Hamptons International, Jonathan Cornell commented: “waiting for rates to drop is risky. A lot of people have been caught out by thinking rates are really high now so must come down.”
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