Fixed-rate mortgages shock
The fixed-rate repayment surprise implicated a two year old
fixed-rate mortgage loan, which could cost consumers thousands
on the long-term.
Building society, Stroud &Swindon established that people
choosing long-term fixed
rate mortgage loans, normally 10-year
deals, are worse off than people who had chosen shorter deals.
People who selected long-term fixed
rate mortgages faced better
interest rates and extensive repayments.
Paul Chafer, director of Stroud &Swindon, commented: "The
current 10-year mortgage
deals are not necessarily the right
buyers are usually on a very tight budget
so any saving they can make on their mortgage repayment helps.
This research shows that long-term fixed
rate mortgages are
not always the most cost-effective option. First-time
buyers will obviously be looking to move up the property ladder so will
not want to be tied into a long-term mortgage."
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