Little point in short term fixed mortgages, expert claims
There is not an “awful lot of point” in taking out short-term fixed-rate mortgages at current rates, one expert has claimed.
Ray Boulger, senior technical manager at John Charcol, explained that most Brits who choose fixed-rate mortgages opt for longer deals in an effort to gain “security” over their repayments .
According to a new report from unbiased.co.uk, the rate the average homeowner would be prepared to fix their mortgage at is 3.3 per cent.
This is despite current best buy deals for three-year fixed-rate loans hovering at around 5.1 per cent.
Mr Boulger observed that a 3.3 per cent average rate sounds “unrealistic”, though he acknowledged that it depends upon the length of the deal.
“If people were thinking of a two-year fixed-rate rather than a five-year fixed-rate, then 3.3 [per cent] is quite realistic, but it is unrealistic if you are thinking of a longer fixed-rate,” he said.
Mr Boulger is widely recognised as a leading expert on the UK mortgage industry .
Recent Comments