Long-term mortgages 'better value'

Posted: 10 Dec 2009 11:40:35 GMT

Taking out a long-term mortgage deal could work out cheaper for borrowers, according to one mortgage expert.

Ben Wilkie, editor of What Mortgage, advises that a lot of people are taking out two-year fixed-rate mortgages because they are pressured into it by brokers who gain commission from the deal.

He says that while this might seem like a good deal at the time, it could be that when the two-year period comes to an end a longer-term option would have actually been better value.

Mr Wilkie's comments come in response to recent figures from Moneyfacts, which reported that the cost of the average two-year mortgage rate has fallen by the largest weekly amount since the beginning of 2009.

Assetz has predicted that house prices are likely to rise by five per cent in 2010, due to a poor supply of housing and better deals for mortgage borrowers being introduced to the market.

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