26
Mar
'More long-term deals available'
There has been a proliferation of long-term fixed-rate mortgage
deals hitting the market, but many have high rates, MoneyExpert.com
has claimed.
At present, there are 132 of these fixed-rate deals available that
last for ten years or over, it said, which make up 11.5 per cent of
every fixed-rate offering.
But despite a lowering of the base rate of interest by the Bank of
England, these services come with an average initial rate of 6.14
per cent, MoneyExpert.com noted, in some cases rising to 7.59 per
cent.
Sean Gardner from the company said that homebuyers are finding that
they are in a predicament because of the level of rates.
"Average rates on long-term deals are up, meaning the consequences
of making such a big decision are even more severe. If interest
rates start to spiral, you'll be laughing," he commented.
However, he added that if rates drop again then money could have
been saved if consumers had stuck to short-term products.
Last April, just 8.9 per cent of the mortgage market was open to
long-term fixed-rate choices.
Recent conditions seen on the housing market favour buyers, the
National Association of Estate Agents has said this week.