Five year fixed-rate mortgage deals give 'longer term stability'

Posted: 12 Jun 2008 13:06:39 GMT

Borrowers should aim to fix their mortgages for five years to achieve "longer term stability" from their deal, an industry expert has advised.

Borrowers should aim to fix their mortgages for five years to achieve "longer term stability" from their deal, an industry expert has advised.

Moneyfacts, an independent financial advice service, has suggested that rising inflation and fears of a base rate increase could create a rise in mortgage rates.

According to Moneyfacts, the uncertainty over rates and the instability of the current economic climate means those looking to secure a good mortgage deal should look at the bigger picture.

Darren Cook, mortgage expert at Moneyfacts.co.uk, commented: "There is now new scope for a borrower to possibly take a more prudent approach to look past previously popular two-year deals and look for longer term stability."

Mr Cook explained that the Bank of England may look to "push up rates three times" before the end of the year.

The average five year mortgage deal currently stands at 6.66 per cent, compared to 6.68 per cent for a two-year fixed rate deal.

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