Five-year mortgages are 'basic choice'

Posted: 27 May 2010 17:09:12 GMT

A mortgage expert has rubbished claims that the number of five-year fixed mortgages has increased ten times in the last three years.

Ray Boulger, senior technical manager at John Charcol mortgage advisors, does not think it is logical that there are ten times as many fixed-rate mortgages.

"That sounds complete rubbish," he said. "There were a lot more than 39 three years ago … there is no logical reason why there should be ten times as many fixed."

His comments come after moneysupermarket.com reported the number of five-year fixed-rate mortgages has gone from 39 in April 2007 to 411, but two-year fixed-rate deals have dropped from 3,767 to 612 over the same period.

Mr Boulger added that the majority of people should opt for a five-year fixed-rate mortgage, providing it is portable.

The website also reported that the average five-year fixed-rate deal in April 2007 was 5.74 per cent, which had risen to 5.82 per cent by the same time this year.


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