28
Feb
"Peace of mind" offered by fixed deals
Fixed-rate mortgage deals are likely to benefit homeowners who do
not want to risk interest rates rising again, Moneysupermarket.com
has claimed.
Such deals are feasible for people at the start of the mortgages
because they are usually stretched to the limit in financial terms
and therefore want "peace of mind", the organisation stated.
But personal circumstances should determine the mortgage product
that is ultimately purchased, said head of mortgages Louise Cuming,
although no-one has a "crystal ball" and a "gamble" must not be
made.
"If you're at the edge of your affordability then I would go for a
fixed rate," she commented.
The main factor that drives people to such deals is the prospect
that rates may rise in the future and then they will be "stuck",
she added, explaining that is why tracker deals are not as
popular.
According to a Fairinvestment.co.uk poll conducted recently, 57 per
cent of Brits would opt for a fixed-rate deal.