Borrowers tied into fixed rate mortgage deals
Since the Bank of England have reduced the interest rate, Stroud & Swindon Building Society suggested that homeowners who are currently tied into a fixed rate mortgage deal would not be able to take advantage of this decrease.
With so many cheap mortgage deals available it can sometimes be difficult to decide on which deal to select. Paul Chafer, Commercial Director at Stroud & Swindon, spoke further in regards to the perfect mortgage solution:
"With a fixed rate you will know exactly how much you will have to set aside each month for your mortgage, which will make it easier to budget. With a tracker mortgage, your monthly mortgage repayments will fall as the base rate does.
"With interest rates expected to go down before they rise, it may make more sense to wait until they reach a point at which you are comfortable, and then arrange a fixed rate mortgage. "
Mr Chafer also suggested that borrowers should beware of the mortgage lender's variable rate, as this type of mortgage deal will not always lead to a reduction in the base rate.
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