Fixed-rate mortgages a sensible idea?

Posted: 26 Aug 2010 10:16:07 GMT

Securing a fixed-rate mortgage while base rates are low is a "very sensible" idea, one expert has indicated.

Editor of Your Mortgage Paula John said although the deals have not always offered the cheapest rates they are worth thinking about.

"Your mortgage is likely to be your largest ever financial commitment and the advantage of a fixed-rate - whatever sort of borrower you are - is that you know exactly what your mortgage payments are going to be," she added.

Ms John noted this type of loan means individuals can budget and this is more important than ever given the threat to jobs during the current economic climate.

She explained homeowners should try and fix their deals at five per cent, as over the long term this could save cash.

The specialist's comments follow the release of figures from the British Bankers Association, which revealed gross mortgage lending totalled £8.4 billion in July.
 

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